The Weekly Oil and Gas Update

Weekly USA Oil & Gas Update for 27th April 2016: New York Rejects Natural Gas Pipeline

Todd Erickson
Contributor: Todd Erickson
Posted: 04/27/2016

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

Normal 0 false false false EN-GB X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman","serif";}

Rig Counts - select states with key plays

 

Select states

This Week

Change from last week

3 months ago

One year ago

Alaska

     7

    0

    11

   11

Arkansas

     0

    0

     0

     9

California land

     4

    0

     7

   13

Colorado

   17

    0

   20

   37

Kansas

     6

    0

   10

   12

Mississippi

     2

    0

     6

    4

N. Louisiana

   15

    0

   21

   29

New Mexico

   19

    0

   30

   48

North Dakota

   26

    0

   45

   78

Ohio

   11

   -1

   14

   25

Oklahoma

   63

    0

   87

 115

Pennsylvania

   16

    0

   23

   49

Texas

  187

   -7

  294

 493

Utah

     2

    0

     3

     7

West Virginia

   12

    0

   12

   21

Wyoming

     8

     0 

   15

   23

Total US

  431

   -9

  637

 932

Total Canada land

   40

   +1

  165

   78

 

 

Oil & Gas Prices - Bloomberg/EIA

 

This Morning

 

12 weeks ago

 

1 year ago

Crude Oil - USD/bbl

WTI

   43.60

         31.62

     56.37

Brent

   45.14

         32.45

     61.20

Natural Gas-USD/mmbtu

NYMEX Henry Hub

    2.07

          2.28

       2.57

 

General News

IEA - Crude oil market to re-balance in 2017

Fatih Birol, the chief of the International Energy Agency (IEA) doesn't see supply falling to match current demand levels until early 2017. "At the turn of this year or latest 2017, we expect oil markets to re-balance and the prices to re-balance. When we look at all the fundamentals - demand, supply and stocks - I have all the reasons to believe that in the absence of a major economic downturn, we are going to see balance in the markets latest by 2017." Most of the supply reduction is coming from non-OPEC sources, such as the US, Canada, Latin America and Russia, which gives OPEC an increasing world market share as they maintain their current production levels.  Iran will also be a factor, as it is expected to contribute an additional 500,000 barrels per day to the market within the next year as western sanctions are lifted.  Article here

 

Job cuts continue as Halliburton and Schlumberger each cut more workers

The world's largest energy services provider, Schlumberger, cut 2,000 additional jobs in the first quarter in an effort to further reduce costs in an industry in free fall. Article here  The other industry giant, Halliburton, made even larger reductions, announcing that it cut more than 6,000 jobs in the first quarter as revenue declined over 40%. Article here "Life has changed in the energy industry, especially in North American and over the past several quarters we have taken the steps to adapt to that fact," said Halliburton's CEO Dave Lesar. 

 

Unconventional Oil & Gas News

ExxonMobil begins production at Point Thompson project on Alaska's North Slope

The company has invested $4 billion up to this point, and expects to initially produce 5,000 barrels per day of condensate and 100 million cubic feet of natural gas, which it will re-inject for future recovery. At full production, the facility will be able to double these numbers. The Point Thompson reservoir holds an estimated 8 trillion cubic feet of natural gas along with associated condensate, which represents 25% of the known gas on the North Slope. Article here

 

Environment and Safety News

New York rejects permit for Constitution natural gas pipeline

The state rejected the permit on environmental grounds, citing water quality issues. The Federal Energy Regulatory Commission (FERC) had already approved the project - New York's final approval was the last step to clear the way for construction. This is the second transmission project to be thwarted; last week backers of the Northeast Energy Direct pipeline, which was to carry gas into the Boston area, also announced they were dropping their project.  Article here

 

Mergers and Acquisitions News

Devon divests Mississippian assets for $200 million
The buyer is White Star Petroleum, who will acquire production of 12,800 boe per day from 555 wells in the Mississippi Lime and the Woodford Shale. The assets, covering approximately 210,000 acres, double White Star's production and acreage footprint in central Oklahoma. Article here

Todd Erickson
Contributor: Todd Erickson
Posted: 04/27/2016

Join for Free

EVENTS OF INTEREST

ILEC Conference Centre and Ibis London Earls Court, London, United Kingdom
February 27 - 28, 2018
The St. Regis Singapore, , Singapore
March 27, 2018