Crude Oil News

Photo: Oil & Gas 360 - Permian - Delaware Basin Action Virtually Nonstop Since Oct. 1

Can Anything Stop the Permian?

Another 560 MBOPD production growth in 2017

The Permian has experienced massive production growth this year, adding more than 560 MBOPD with no signs of slowing down.

Companies in the Permian expect to grow even more next year, further cementing …

Weekly Oil Storage: Gasoline Build Outweighs Crude Draw

Weekly Oil Storage: Gasoline Build Outweighs Crude Draw

The EIA released its weekly Petroleum Status Report today, outlining how national oil and refined product stocks have changed in the last week.

Crude oil stocks fell by 5,610 MBBL last week to 453,713 MBBL, from 453,713 MBBL. This is …

Fifth Creek Energy, Bill Barrett Corporation to Merge in $649 Million Deal

Fifth Creek Energy, Bill Barrett Corporation to Merge in $649 Million Deal

Bill Barrett (ticker: BBG) announced the acquisition of Fifth Creek Energy after markets closed Tuesday, in a transaction valued at about $650 million.

The agreement will see Bill Barrett and Fifth Creek each become subsidiaries of a new holding company, …

Statoil Greenlights Largest Offshore Project This Year

Statoil Greenlights Largest Offshore Project This Year

Johan Castberg will cost $6 billion

Norway’s Statoil (ticker: STO) approved the largest offshore development this year today, approving the Johan Castberg project in the arctic Barents Sea.

Discovered in 2011, Johan Castberg is farther north than Prudhoe Bay in …

Enter the ‘petro’: Venezuela to launch oil-backed cryptocurrency

Enter the ‘petro’: Venezuela to launch oil-backed cryptocurrency

From Reuters

Venezuelan President Nicolas Maduro looked to the world of digital currency to circumvent U.S.-led financial sanctions, announcing on Sunday the launch of the “petro” backed by oil reserves to shore up a collapsed economy.

The leftist leader offered …

December 4, 2017 - 5:01 pm Closing Bell Story‎, Crude Oil News
Oil prices in North Korea dip due to imports from Russia

Oil prices in North Korea dip due to imports from Russia

From UPI

Oil prices in North Korea have fallen substantially from record-high levels in early November, due to massive imports from Russia, Radio Free Asia reported Sunday.

The U.S. based broadcaster cited a report by Asia Press International, saying that …

December 4, 2017 - 4:52 pm Closing Bell Story‎, Crude Oil News
Shell Midstream Announces $825 Million Drop-Down

Shell Midstream Announces $825 Million Drop-Down

Shell Midstream Partners, L.P. (NYSE: SHLX) entered into a purchase and sale agreement to acquire from wholly owned subsidiaries of Shell a 100% interest in five products terminals and partial interest in two Gulf of Mexico corridor pipelines and in …

December 4, 2017 - 4:42 pm Closing Bell Story‎, Crude Oil News, MLP News
In the Third Largest U.S. Shale Gas Basin, Rig Count Noses Past Marcellus

In the Third Largest U.S. Shale Gas Basin, Rig Count Noses Past Marcellus

Total U.S. rigs up by 6 – total is 929

U.S. drilling activity rose again this week, the fourth straight week of increases, according to the latest edition of Baker Hughes Rig Count.

Six rigs began activity this week, meaning …

Source: Helix Energy

Contango Ahead of Schedule in the Permian

One-rig program throughout 2018

Contango Oil & Gas (ticker: MCF) announced an update on its operations today, covering activity in its Permian acreage.

Contango expects it will maintain its current one-rig drilling program throughout 2018, now that it has de-risked …

ExxonMobil Combines Refining and Marketing Arms

ExxonMobil Combines Refining and Marketing Arms

ExxonMobil (ticker: XOM) announced it will combine its refining and marketing operations into a single company, ExxonMobil Fuels & Lubricants. The combination will take place in Q1 2018. Bryan Milton, currently president of ExxonMobil Fuels, Lubricants & Specialties Marketing Company, …

December 1, 2017 - 4:25 pm Closing Bell Story‎, Crude Oil News
Magellan Begins Open Season for Permian-Eagle Ford-Corpus Christi Pipeline

Magellan Begins Open Season for Permian-Eagle Ford-Corpus Christi Pipeline

Magellan Midstream Partners, L.P. (NYSE: MMP) announced today that it intends to develop a new pipeline and has launched an open season to assess customer interest to transport various grades of crude oil and condensate from the Permian and Eagle …

December 1, 2017 - 4:21 pm Closing Bell Story‎, Crude Oil News, MLP News
Poison Pill “Would Make a Totalitarian Dictator Blush”: Icahn Responds to SandRidge

Poison Pill “Would Make a Totalitarian Dictator Blush”: Icahn Responds to SandRidge

“Your apparent disregard for any semblance of accountability to the owners of SandRidge reminds me of the medieval belief in the divine right of kings”: Icahn

Activist investor Carl Icahn published an open letter today, responding to SandRidge’s (ticker: SD) …

Taking a Page from Refiners: Cash Returns

Taking a Page from Refiners: Cash Returns

Refineries may show the way in an environment totally focused on returns

E&P investors are shifting priorities, and are beginning to reject “growth for growth’s sake” in favor of shareholder returns. Cash returns are elusive in a capital-intensive industry, though, …

ETFs Hold a Growing Share of Crude Futures, But Effect on Price Unclear

ETFs Hold a Growing Share of Crude Futures, But Effect on Price Unclear

Money managers hold 31% of long positions

Exchange-traded funds (ETFs) are playing a growing role in oil futures markets, according to a recent release from the EIA.

ETFs can allow smaller investors access to the oil futures market, if indirectly. …

Calgary-based Precision Drilling Corporation (ticker: PDS) announced planned capital expenditures for 2017 of CAD$109 million.

Oil Company Return Metrics Nearing Levels Not Seen Since $100 Oil

Return on invested capital breaks from historic patterns as companies reap the benefits of efficiencies

Oil and gas companies are beginning to take a more measured approach to growing even as oil prices hover above $55 per barrel, a move …

Weekly Oil Storage: Draw Continues

Weekly Oil Storage: Draw Continues

The EIA released its weekly Petroleum Status Report today, outlining how national oil and refined product stocks have changed in the last week.

Crude oil stocks fell by 3,429 MBBL last week to 453,713 MBBL, from 457,142 MBBL. This is …

Shell Returns to Cash Dividend, Targets 50% Carbon Footprint Reduction by 2050

Shell Returns to Cash Dividend, Targets 50% Carbon Footprint Reduction by 2050

Q4 2017 dividend all-cash, $25 billion in share buybacks

Shell held its Management Day today, outlining the company’s strategy and outlook in the mid-term.

One of the immediate highlights of this presentation is the cancellation of Shell’s scrip dividend program. …

What OPEC (Saudi) Desperately Needs and Why Thursday’s Meeting is Vital

What OPEC (Saudi) Desperately Needs and Why Thursday’s Meeting is Vital

OPEC breakevens go far beyond simply paying to service wells

As OPEC prepares for its 173rd regular meeting this week, individual member countries must decide what oil price they really need.

OPEC countries all use the revenue from oil …

Growth in the Bakken is Coming from Gas Production

Growth in the Bakken is Coming from Gas Production

Gas-oil ratio increasing; flaring is on the wane

The Bakken is well known as an oil basin, but current growth is primarily made up of natural gas output, according to the EIA.

The Bakken has the lowest gas-oil ratio (GOR) …

IEA’s Birol Backtracks 2017 Rebalance Prediction

IEA’s Birol Backtracks 2017 Rebalance Prediction

Birol believes rebalance is now coming in 2H of 2018

Back in July—on the U.S.’s Independence Day—Fatih Birol, the chief of the International Energy Agency (IEA) said he believed the oil market would rebalance in the second half of 2017, …

November 28, 2017 - 5:23 pm Closing Bell Story‎, Commodity Pricing, Crude Oil News
Statoil to drill five-six wells in Arctic Barents Sea in 2018

Statoil to drill five-six wells in Arctic Barents Sea in 2018

From Reuters

Norway’s Statoil (STL.OL) will continue to drill for oil in the Arctic Barents Sea next year even though its 2017 campaign was mostly disappointing, the company’s head of exploration told Reuters on Tuesday.

Statoil plans to …

November 28, 2017 - 3:43 pm Closing Bell Story‎, Crude Oil News, Natural Gas News
Rising Russian Sakhalin oil output may threaten OPEC deal compliance

Rising Russian Sakhalin oil output may threaten OPEC deal compliance

From Reuters

Russia and the Organization of the Petroleum Exporting Countries will meet in Vienna on Thursday to discuss an extension of the pact to curb output, possibly by another nine months until the end of 2018.

The Sakhalin-1 project, …

November 28, 2017 - 3:39 pm Closing Bell Story‎, Crude Oil News
Total Divests Martin Linge, Garantiana Fields

Total Divests Martin Linge, Garantiana Fields

Total (ticker: TOT) announced two significant developments today, selling Norwegian assets and bringing a Brazilian field online.

Total will sell its interests in the Martin Linge field and the Garantiana discovery to Statoil for a total of $1.45 billion. Total …

SandRidge Creates “Poison Pill” to Fight Icahn

SandRidge Creates “Poison Pill” to Fight Icahn

Rights plan prevents acquiring large stake in company

SandRidge Energy (ticker: SD) may be facing an uphill struggle in its acquisition of Bonanza Creek Energy (ticker: BCEI), based on recent filings.

SandRidge announced the adoption of a short-term shareholder rights …

Carrizo Sells DJ Assets, Focuses on Texas

Carrizo Sells DJ Assets, Focuses on Texas

Company is now exclusively Eagle Ford, Delaware operator

Carrizo Oil & Gas (ticker: CRZO) continues to focus on its core activities, announcing the sale of its DJ Basin assets today.

Carrizo will sell its Niobrara assets for $140 million in …

New Mexico Oil Production Reaching New Heights

New Mexico Oil Production Reaching New Heights

455 MMBOPD so far this year

Oil production is having a record year in New Mexico, driven by booming activity in the Permian.

While the Permian is generally regarded as a Texas basin, it stretches up into southeast New Mexico. …

Global Oil Inventory Data of Dubious Reliability: Dallas Fed

Global Oil Inventory Data of Dubious Reliability: Dallas Fed

Revisions can substantially change overall picture

Global inventories of crude oil are much in the news currently, and reducing them is the main goal of OPEC’s cut agreements. However, according to the Federal Reserve Bank of Dallas, all is …

U.S. Land Rigs Pierce 900 Once Again

U.S. Land Rigs Pierce 900 Once Again

Wyoming sees largest increase

Drilling activity increased this week, according to Baker Hughes’ Weekly Rig Count.

The total number of rigs active in the U.S. rose by eight to 923 this week, marking the third straight week of increasing activity. …

Fed Plans to Hike Rates, WTI Reaches Two-Year Highs

Fed Plans to Hike Rates, WTI Reaches Two-Year Highs

$58 WTI in intraday trading

Minutes from the Federal Reserve’s October 31-November 1 meeting were released today, giving information about a rate hike in December.

Bottom line: the Fed kept interest rates unchanged this meeting, but signaled a rate hike …

Weekly Oil Storage: Drawdown Resumes

Weekly Oil Storage: Drawdown Resumes

The EIA released its weekly Petroleum Status Report today, outlining how national oil and refined product stocks have changed in the last week.

Crude oil stocks fell by 1,855 MBBL last week to 457,142 MBBL, from 458,997 MBBL. This is …