Weekly USA Oil & Gas Update for 10th May 2016: Canadian Oil Sands Production Halted As Wildfires Rage
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.
This weekly update brings you all the stats and headlines you need to know about in the American Oil & Gas landscape including the rig count, oil price, environmental, HSE and M&A news.
Rig Counts - select states with key plays
Oil & Gas Prices - Bloomberg/EIA
EOG claims profitability at $40 a barrel
The company's CEO Bill Thomas told investors on Friday that the company would post strong returns with oil at $40 a barrel, returns which could increase to triple digit returns should oil surpass $60 a barrel. They company boasts a cost advantage over the rest of the industry, which Thomas said needs a "sustained $60-$65 oil price and 12 months of leaad time" to deliver modest growth. EOG says this is due to its focus on "premium drilling", which Thomas defined as wells that return at least 30% at $40 oil, along with the company's efforts in enhanced oil recovery. Article here
Unconventional Oil & Gas News
EIA produces new map of the Utica Shale play
The newly-updated map shows the structure, thickness and geologic setting of the play, along with the locations of more than 1,700 wells drilled in the area up to January 2016. Map Here
Newly-build North Dakota refinery taking a bath on low demand
MDU and Calumet built the new refinery, the first in the US in about 30 years, to take advantage of the local market for diesel in. wajt was at time, the burgeoning Bakken Shale. The local bust has put a damper on that; MDU reported that the refinery took a $7.2 million loss last quarter. The integrated utility company's response is to dial back production, operating at just 75% of capacity going forward. Both owners may also be having second thoughts about their ownership stake. MDU said it is "assessing various options with respect to its ownership interest in the refinery," and Calumet said in its earning report it might divest some of its assets. Article here
Environment and Safety News
Canadian oil sands production halted as wildfires rage
The country's oil sands production, mostly centered around Fort McMurray, Alberta, contributes 2.1 million of barrels per day to Canada's daily production of 3.9 million barrels, but the entire region is in danger of shutdown as producers evacuate their people. In addition to the oil workers, as many as 10,000 residents of Fort McMurray have fled the town. Article here
Mergers and Acquisitions News
Chesapeake sells Oklahoma acreage to Newfield for $470 million