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The Weekly Oil and Gas Update

The Weekly USA Oil & Gas Update: 8th September 2015

Contributor: Todd Erickson
Posted: 09/07/2015
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The Oil & Gas Weekly is compiled by Todd Erickson. Todd is a veteran executive manager in the North American E&P market.

He has management experience in high-growth oil & gas service organizations performing a leadership role in operations, strategy, and corporate development with a track record of identifying opportunities and best-practices, creating execution plans, then developing effective teams and leaders to execute them.

Learn more about Todd here

Rig Counts - select states with key plays

Select states

This Week

Change from last week

3 months ago

One year ago

Alaska

12

-1

10

7

Arkansas

4

0

5

12

California land

13

0

11

44

Colorado

34

-2

39

74

Kansas

11

-2

14

23

Mississippi

3

0

2

13

N. Louisiana

30

+1

27

29

New Mexico

48

-2

46

96

North Dakota

71

-1

76

183

Ohio

18

-1

22

41

Oklahoma

106

+1

106

213

Pennsylvania

35

0

46

57

Texas

375

-11

364

907

Utah

4

0

7

23

West Virginia

17

0

20

29

Wyoming

25

0

22

57

Total US

864

-13

868

1925

Total Canada land

183

-9

112

405

Oil & Gas Prices - Bloomberg/EIA

This Morning

12 weeks ago

1 year ago

Crude Oil - USD/bbl

WTI

45.42

59.53

92.92

Brent

48.89

60.99

100.21

Natural Gas-USD/mmbtu

NYMEX Henry Hub

2.70

2.89

4.01

General News

Drilling rig efficiency dramatically improving, lowering costs

Walking rigs, along with other technological improvements, have lowered drilling costs by a third for some producers over the last year. As a result, crude oil production has only fallen 3.3% over the last year as operators employ these efficiencies and focus on the most productive acreage they hold, despite a halving of the rig count from a year ago. As an example, Anadarko plans to increase its number of wells drilled in Colorado's Wattenberg field, from 360 last year up to 380 this year, employing a little more than half the number of rigs it used in 2014. As a result of these new efficiencies, fewer rigs are needed, and in response to this reality, drilling companies have been forced to cut day rates by a third. Article here

Unconventional Oil & Gas News

Dickinson, ND hotels down to 50% capacity from oilfield slowdown

A couple years ago, it was difficult to find any room for a night in Dickinson, located just south of the heart of the Bakken. Now, occupancy rates are sitting around 50% as the number of workers in the oil field decline and more workers move to permanent housing. New rooms keep coming on line in the region as well, as projects started when demand was high are just now being completed. As a result, room prices are falling. "Everyone has adjusted rates in accordance to what's happening in our community," said Comfort Inn General Manager Bonnie Goldsberry. Article here

Environment and Safety News

Blowout in Bakken will releases 550 barrels of crude

The blowout occurred about 10:30 am Saturday in an XTO well 18 miles southeast of Watford City, North Dakota. An estimated 110 barrels of brine water were released, along with the 550 barrels of crude oil. "it didn't spread too far," said Bill Suess, spill investigations program manager for XTO. "Most of fit went straight up in the air and landed right back down on the well pad." No surface water was affected by the spill and clean up continues at the site. Article here

Mergers and Acquisitions News

Enterprise Products sells offshore assets to Genesis for $1.5 billion
The assets include about 2,350 miles of oil and gas pipelines, along with six offshore hub platforms. Article here

Contributor: Todd Erickson