The Weekly Oil and Gas Update

Weekly USA Oil & Gas Update for 10th May 2016: Canadian Oil Sands Production Halted As Wildfires Rage

Todd Erickson
Contributor: Todd Erickson
Posted: 05/10/2016

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.

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

     6

   -1

    13

   10

Arkansas

     0

    0

     0

     7

California land

     4

    0

     7

   12

Colorado

   15

   -1

   22

   39

Kansas

     4

    0

     9

   10

Mississippi

     3

    0

     3

    4

N. Louisiana

   14

    0

   18

   27

New Mexico

   16

    0

   26

   44

North Dakota

   25

   -1

   42

   80

Ohio

   10

   -1

   13

   24

Oklahoma

   57

   -3

   80

 102

Pennsylvania

   16

    0

   19

   47

Texas

  188

  +3

  262

 379

Utah

     2

  +1

     1

     6

West Virginia

   10

    0

   12

   20

Wyoming

     8

     0 

   13

   24

Total US

  415

   -5

  571

 894

Total Canada land

   34

   -2

  239

   73

 

 

Oil & Gas Prices - Bloomberg/EIA

 

This Morning

 

12 weeks ago

 

1 year ago

Crude Oil - USD/bbl

WTI

   44.44

         29.05

     58.92

Brent

   44.93

         31.09

     64.62

Natural Gas-USD/mmbtu

NYMEX Henry Hub

    2.10

          2.08

       2.72

 

General News

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
The sale includes 42,000 acres in the Anadarko Basin's STACK play, and extends Newfield's footprint in the area to 265,000 acres.  Current production from the assets is approximately 3,800 boe/d, 55% liquids. Article here

Noble Energy sells 72,000 acres in Wattenberg field to Synergy
The $505 million transaction includes 900 gross potential locations in Colorado's Wattenberg field, located in the heart of the Niobrara shale play. Article here

Todd Erickson
Contributor: Todd Erickson
Posted: 05/10/2016

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