Iraq may owe international oil companies compensation for lost production Less than a week into the new year, many oil market experts are beginning to wonder if OPEC will be able to follow through with its production cuts. Already Iraq, the group’s second-largest producer, appears to be facing problems in implementing cuts as the cash-strapped country looks to lower output
OPEC Compliance Remains Primary Concern for WTI WTI futures opened the year by dropping 2.4% to $52.33 per barrel as the U.S. dollar reached its highest level since 2002. Brent contracts also fell to settle at $55.47. The drop followed a busy morning where both contracts opened at their highest levels since July 2015 on optimism that OPEC and other
New incentives program designed to reward efficient drillers Alberta’s provincial government has decided to leave royalty rates largely unchanged after the leadership ran on a platform that promised to change rates to ensure the province was receiving its fair share. Alberta Premier Rachel Notley said that if the review found the timing was wrong to raise royalty rates, her party
SM Energy announces sale of non-operated Eagle Ford assets for $800 million Denver-based SM Energy (ticker: SM) announced Tuesday that the company has divested its non-operated Eagle Ford assets for $800 million. SM has entered into a definitive agreement with a subsidiary of Venado Oil and Gas, LLC, an affiliate of KKR (ticker: KKR) for the sale of SM’s third
Iran qualifies international companies from CEPSA to Wintershall to take part in oil and gas tenders Iran has qualified 29 international companies to bid in tenders for oil and natural gas development projects as the company seeks foreign investment to revitalize its industry following the end of international sanctions. The companies approved for tenders include those from Germany, France, Italy,
Sale takes FCX production down to 7,000 barrels of oil and NGLs, 74 MMcf of natural gas per day Privately held Sentinel Peak Resources LLC, which is based in Denver, has closed its previously announced acquisition of the onshore California assets of the oil and gas subsidiary of Freeport-McMoRan Inc. (ticker: FCX) for $592 million in cash, before closing adjustments, the companies announced
With Physical Hedging on Rise, Production Response May Weaken With OPEC and non-OPEC production cuts on the horizon (although not guaranteed), institutions exposed to oil have shifted their outlooks for price risk, as reflected in their current positions in NYMEX WTI futures and options. As the WTI forward curve has shifted into backwardation, analysts are calling for swollen inventories to
U.S. rig count down 40 from the start of the year The number of rigs drilling in the United States plummeted along with crude oil prices from the end of 2014 through the first half of this year. Lower prices made many hydrocarbon resources in the ground uneconomical to produce, reducing the demand for rigs. As prices have recovered, the
Gas, Nuclear, and Renewables Will Grow the Most, in that Order The global energy mix will not look that much different for oil and gas in 2040, according to Exxon Mobil’s (ticker: XOM) recently released 2017 Outlook for Energy: A View to 2040. Both the middle class and world GDP is expected to double in the next 15 years, accelerating
Crude oil stocks increase as products draw down Crude oil inventories rose for the week ended December 23, 2016, according to the Energy Information Administration. Analysts expected a draw of approximately 1.3 MMBO, but the government agency reported 0.6 MMBO were added to stockpiles last week. Typically, an increase in crude oil stockpiles puts downward pressure on prices as more
Proved oil and gas reserves down 11.8% and 16.6%, respectively, from year-end 2014 EIA has downgraded its estimates of proved oil and gas reserves in the U.S., according to its Crude Oil and Natural Gas Proved Reserves, Year-end 2015 report, released today. Proved reserves of crude oil in the U.S. declined by 4.7 billion barrels or 11.8% from their year-end
Crude oil inventories fall 1.3 MMBO Crude oil inventories saw a modest draw today, falling 1.3 MMBO in the week ended November 18, 2016, according to data released by the Energy Information Administration. Economist anticipated a build of 290 MMBO for last week. Total U.S. crude oil in storage now stands at 489.0 MMBO, the end of the five-year range
