Post Tagged with: "Oil Production"

Source: Reuters

OPEC president sees little impact from coronavirus on oil market: APS

Reuters ALGIERS – OPEC president Mohamed Arkab said on Monday he expects an outbreak of coronavirus in China to have little impact on the global oil market for now, but added that producers were ready to react to any new developments. “The impact on the prospects for the world oil demand would be low,” Arkab, who is also Algeria’s energy minister, said in a statement carried on the country’s state news agency APS. “The organization (OPEC) is closely monitoring the development of the oil market in conjunction with the development of the recent coronavirus epidemic.”

Source: Houston Chronicle

Another record year expected for Gulf of Mexico oil production

Houston Chronicle The U.S. Gulf of Mexico is expected to set another oil production record in 2020 with most of the growth coming from deep water projects, according to a new study. Average production next year is expected to exceed 1.9 million barrels a day, according to the Norwegian-based energy research and consulting firm Rystad Energy. Oil production in the Gulf of Mexico has grown every year since 2013. At the same time, producers in the Gulf of Mexico have been cutting costs with total investments less than half of what they were just five years ago. Development costs have fallen 60 percent since 2015, according to Rystad, and operational expenditures are down 7 percent.

Two New Mexico Counties Among Nation’s Top Oil Producers

Two New Mexico Counties Among Nation’s Top Oil Producers

From THE ASSOCIATED PRESS HOBBS, N.M.—Two New Mexico counties remain among the top oil-producing counties in the U.S., according to new federal numbers. Data from the U.S. Energy Information Administration shows that Lea County was the No. 2 oil-producing county in January behind North Dakota’s McKenzie County, The Hobbs News-Sun reported. Lea County produced 14.6 million barrels of oil in January while McKenzie County which produced 17.3 million barrels, the report said. Lea County had more than twice the number of operating rigs as McKenzie County. Steve Vierck, the outgoing CEO and president of the Economic Development Corporation of Lea County, was pleased to hear the news. “Our production has roughly tripled in the last five years,” Vierck said. “The county produces over half the state’s oil and the state is No. 3. It really reflects not only how much oil production there is, but how much growth there has been in oil[Read More…]

May 20, 2019 - 5:08 pm Closing Bell Story, Energy News
Dear Weld County’s Hard Working Citizens: When Governor Polis said He wants All Families to have a Chance to Thrive, He Wasn’t Talking about You—Weld County Commissioners

Dear Weld County’s Hard Working Citizens: When Governor Polis said He wants All Families to have a Chance to Thrive, He Wasn’t Talking about You—Weld County Commissioners

Weld County economy depends heavily on oil and gas production The Board of Weld County Commissioners, representing the working people who live in the epicenter of Colorado’s most prolific oil-producing region, posted a message to their constituents in response to Governor Polis’s signing of Senate Bill 19-181 into law.  SB 19-181 is the law that makes vast changes the priorities for the state’s handling of oil and gas permitting and regulation by retooling the Colorado Oil and Gas Conservation Commission’s mission and changing the COGCC’s makeup. A it hands decision-making power for oil and gas surface use rulemaking to counties, cities, towns and municipalities throughout the state but the body with the more stringent health and safety… Login or click here to subscribe Username or E-mail Password Remember Me     Forgot Password

OPEC: Too Close to Call - Oil & Gas 360

Newcomer to OPEC May Boost Output as Much as 65% This Year

From Bloomberg The Republic of Congo expects to raise oil production by as much 65 percent this year as two new projects come on stream, Hydrocarbons Minister Jean-Marc Thystere-Tchicaya said. Congo joined OPEC last week and plans to open up its oil industry, which the government says is dominated by Total SA and Eni SpA, to new investors. Sub-Saharan Africa’s third-biggest oil producer pumped 291,000 barrels per day last year, according to the BP Statistical Review of World Energy. Output will increase as commercial production starts this year at Moho North and Banga Kayo, Thystere-Tchicaya said by phone Sunday from the capital, Brazzaville. Moho North, a deep offshore program operated by Total, is expected to produce 140,000 barrels per day, while the Banga Kayo onshore field developed by closely held Chinese company Wing Wah Petrochemical will pump 50,000 barrels, he said. “This accession to OPEC membership comes at a time[Read More…]

Dallas Fed’s Mine Yücel talks about Global Oil & Gas Output and the Goldilocks Price for 2018

Dallas Fed’s Mine Yücel talks about Global Oil & Gas Output and the Goldilocks Price for 2018

The Federal Reserve Bank of Dallas is populated with smart people who track the comings and goings of all the factors affecting the energy industry, not just in Texas but globally. Dallas Fed SVP and Research Advisor Mine Yücel discussed oil prices and global supply conditions and economic effects of price shocks in a presentation at the EnerCom Dallas investment conference last week. Yücel traced the struggle of oil prices from the $40s in 2016, into the $50s in 2017 and now into the low-$60s in early 2018. Yücel said, “Despite these ‘mediocre’ prices, U.S. shale output has more than gone up by 1.3 million barrels per day last year, and everybody thinks we’re actually going to beat our record of 1970.” Yücel referenced the OPEC/Russia self-imposed lid on production, the agreement to cut 1.7 million barrels per day from global oil supply, and the “OPEC and friends” group is[Read More…]

Alaska’s Oil Production Decline Flattens, State Hopes for a Continued Upswing

Alaska’s Oil Production Decline Flattens, State Hopes for a Continued Upswing

Oil production rose in 2016, 2017, expected to rise in 2018 Most attention in the U.S. oil and gas industry has focused on unconventionals with the Permian basin being the hottest of the hot shale plays based on operator activity, industry employment and deal flow. However a mere 3,814 miles and 63 hours away by car, lies a conventional oil play haven that hopes to stage a comeback. Alaskan production peaked in 1998, when the state produced over 2 MMBOPD, and has generally been in decline since. Production bottomed in 2015, when the state pumped 483 MBOPD. However, recent activity has exceeded expectations, and production has grown in the last two years according to the state’s natural resources governing agency. According to the Alaska Department of Natural Resources, oil production growth is expected to continue further, with the department forecasting 2018 production 9 MBOPD higher than 2017. The department identifies[Read More…]

Permian Thought Leaders Talk Turkey

Permian Thought Leaders Talk Turkey

“It will get to a point where it’s actually artificial intelligence that’s drilling our wells for us, with us observing” – Tim Dove, CEO, Pioneer Natural Resources There are a lot of smart E&P companies rambling around West Texas, the place that has dominated the energy spotlight for the past year or two. Ask anybody who’s been looking at shale: it’s all about the Permian basin. The basin is booming. It’s crushing most of the others in production numbers, dollars being paid per acre to enter, ability to offer significant stacked pay and strong economics with oil in the $40s-$50. But fast growth comes with plenty of headaches. How are these operators viewing and solving problems they have in common as they step on the Permian accelerator? Analysts burned up the phone lines on this week’s Q1 earnings calls, asking a lot of questions that brought out sometimes startling viewpoints[Read More…]

Pioneer Natural Resources: 2016 Production Jumps 15% from Spraberry/Wolfcamp Hz Drilling

Pioneer Natural Resources: 2016 Production Jumps 15% from Spraberry/Wolfcamp Hz Drilling

Pioneer expects to place ~260 horizontal wells on production in 2017 Pioneer produced 234 MBOEPD in 2016, up 15% from prior year One of the best years in Pioneer’s 20-year history: Dove Exported 525,000 barrels of Permian basin oil in Q4 2016 Looks to ship two 525,000 barrel cargoes to Asia in Q1 2017: $2.5 billion D&C CapEx targets 18 Spraberry/Wolfcamp rigs, 20 Eagle Ford completions—9 DUCs, 11 new wells—all to be funded from 2017 projected cash flow and cash on hand Expects IRRs 50%-100% for 2017 program at $55 oil, $3 gas Growth path target is 1 MMBOEPD production in 2026 Spending within cash flow starting in 2018, generating free cash flow thereafter Pioneer added 205 MMBOE of proved reserves in 2016 Pioneer Natural Resources (ticker: PXD) reported a fourth quarter net loss attributable to common stockholders of $44 million, or ($0.26) per diluted share. The company said noncash mark-to-market derivative losses of $142[Read More…]

Global Crude Oil Consumption will Increase Faster than Production: EIA

Global Crude Oil Consumption will Increase Faster than Production: EIA

Global crude inventories will decrease build rate through 2018, EIA predicts In its recently released Short Term Energy Outlook, the EIA outlined its predictions for global production and consumption through 2018. An increase in production and seasonal drop in consumption is expected to push an increase in global crude inventories of 2.0 million BPD in the fourth quarter of 2016, the agency said. EIA predicts that production and consumption will both grow through 2018; however production will not grow as rapidly as consumption, tightening global balances. OPEC’s pre-agreement production increase bumps up 2016 Global production is expected to increase by 1.6 million BPD during the fourth quarter of 2016. Much of this increase is due to OPEC members increasing production prior to the implementation of the production cut agreed upon in November, the agency said. With 55%, or 0.9 million BPD, of this increase due to OPEC production, inventory build[Read More…]

Manitok Energy’s Second Carseland Well IPs at 442 BOEPD

Manitok Energy’s Second Carseland Well IPs at 442 BOEPD

Manitok Energy Inc. (Ticker: MEI) announced initial production test results from the second horizontal well of its Q4 drilling program. The 13-33-022-25W4 horizontal well, in which Manitok has 100% working interest, in Carseland, targeted the Lithic Glauconitic (“LG”) zone and was completed with a multi-stage fracture stimulation. In the last 24 hours of the production test, and after flowing back for about five days, the 13-33 well produced 442 BOEPD comprised of 275 BOPD of light oil and 1.0 Mmcf/d of natural gas. With the addition of the previously announced 14-32-022-25W4 well’s production test rate of 674 BOEPD, comprised of 270 BOPD of light oil and 2.4 Mmcf/d of natural gas, and the 13-33 well, Manitok has added approximately 890 BOEPD (49% oil) of initial production capability (restricted at approximately 80% of test rates) at Carseland to compliment the offsetting wells located at 15-32-022-25W4 and 16-32-022-25W4, which have cumulatively produced[Read More…]

Permian Tops U.S. in Production, Rig Count

Permian Tops U.S. in Production, Rig Count

Permian still on the rise The Permian basin now holds nearly as many active oil rigs as the rest of the United States combined, including both onshore and offshore rigs, according to the EIA. The agency projects that crude oil production from the Permian will increase for a third consecutive month in its upcoming reporting period. Last Friday’s rig count release from Baker Hughes (ticker: BHI) put the Permian basin rig count at 218 active rigs—27 vertical, 191 horizontal, 31 of those drilling in New Mexico, 187 drilling in Texas, with 100% of the rigs drilling for oil.

Middle East Share of World Oil Production Highest since 1975: IEA

Middle East Share of World Oil Production Highest since 1975: IEA

Middle East Oil will account for Most of the World’s Demand Growth IEA Believes An updated analysis from the International Energy Agency (IEA) has determined that the current oil price environment has boosted the share of oil produced in the Middle East. At 31 million barrels per day, the region now accounts for 35% of global oil supplies, the highest level since 1975, according to data from the IEA. The agency said a $300 billion decline in investments in the oil sector in 2015 and 2016 represents the first consecutive two-year drop in three decades, with North America accounting for about half the drop. “Growth in production from Saudi Arabia, Iraq and Iran, highlights the fact that low-cost producers in the Middle East remain central to oil markets,” the IEA said in a press release. The agency’s conclusion was that “if prices remain at current levels, a significant rebound appears unlikely[Read More…]

July 8, 2016 - 2:34 pm Closing Bell Story, Oil and Gas 360 Articles, OPEC
U.S. Oil Production Dips Under 9 MMBOPD for the First Time Since 2014

U.S. Oil Production Dips Under 9 MMBOPD for the First Time Since 2014

U.S. crude inventory build was big, but oil prices remain above $40 per barrel Crude oil inventories grew by 6.6 million barrels, far surpassing economist estimates which averaged just 733 thousand barrels for the week ended April 8, 2016. The build brought total U.S. inventories to 536.5 MMBO after a surprise weather-related draw last week. Oil prices fell on the news, but U.S. crude benchmark WTI has remained above the $40 per barrel mark at $42.05 as of 12:00 p.m. EST despite the build. Oil prices climbed above the $40 mark following news that a group of OPEC and non-OPEC members would meet in Doha, Qatar, to discuss freezing crude oil production. The 20 member group represents more than 50 MMBOPD of production, or 64% of global daily production, according to a report from UBS today. The effects of a freeze have been called into question by many analysts who[Read More…]

A rig site in North Dakota

U.S. Oil Production Sees First Year-Over-Year Decline in Four Years

Oil production in December 2015 down 166 MBOPD from a year earlier The decline in crude oil prices took longer to pull production down than many expected, but it is happening, according to data from the EIA. Crude oil production in December 2015 averaged 9.3 MMBOPD, down 166,000 barrels from December 2014. The decline in December oil production represents the first time in four years that production has seen a year-over-year decline. Production reached a 44-year peak of almost 9.7 MMBOPD in April 2015, but even as production rolled over, it remained above levels seen in 2014. Most of the decline has occurred in states where a large portion of the output comes from tight oil formations, including North Dakota, Texas, and New Mexico. Tight oil was responsible for the large increases in U.S. production over the last five years. The U.S. rig count has continued a steady decline since November[Read More…]

Charles Cherington, Co-Founder of Intervale Capital, Discusses the Oil Market on CNBC’s Squawk Box

Charles Cherington, Co-Founder of Intervale Capital, Discusses the Oil Market on CNBC’s Squawk Box

Charles Cherington, Co-Founder and Chief Executive Officer of Intervale Capital, speaks to CNBC’s Squawk Box regarding the state of the U.S. and global oil markets. Intervale Capital is a private equity firm investing exclusively in oilfield manufacturing and service companies, and has offices in Boston and Houston.

Sub $50 Oil is Giving OPEC Countries a Sharp Pain:  Who will be First to Cave?

Sub $50 Oil is Giving OPEC Countries a Sharp Pain: Who will be First to Cave?

OPEC gulf producers look to stay the course for now A global over-supply of crude oil has sent the price for the commodity down to historic lows since June of 2014, when the prices for Brent and WTI crude were above $115 and $107 per barrel, respectively. Much of the decline in the prices came following the decision from OPEC to shrug off its traditional role as swing producer, instead opting to defend the organization’s global market share by continuing to produce at record rates. The move has hurt producers worldwide, including those in OPEC, with Saudi Arabia, the group’s largest producer, likely to post a deficit of 19.5% of GDP this year, according to information from the International Monetary Fund. Members like Venezuela, a country that relies on oil for 95% of export earnings and 25% of GDP, have even called on OPEC for a meeting to establish a[Read More…]

Interview with Alta Mesa Holdings President & CEO Hal Chappelle at The Oil & Gas Conference® 20

Interview with Alta Mesa Holdings President & CEO Hal Chappelle at The Oil & Gas Conference® 20

Alta Mesa Holdings President & CEO Hal Chappelle talks to Oil & Gas 360 at The Oil & Gas Conference® 20 in Denver about his company’s holdings, operations and use of technologies to improve yields and reduce costs. View Alta Mesa Conference Presentation Webcast

Has U.S. Oil Production Already Rolled Over?

Has U.S. Oil Production Already Rolled Over?

Raymond James estimates U.S. production has been declining since March The oil market may be tighter than many realize, according to analysis from Marshall Adkins and researchers at Raymond James. In a follow up to the research they did on the International Energy Agency’s (IEA) 1.2 MMBOPD of missing production, Adkins and his team delved into the Energy Information Administration’s (EIA) own balancing, or plug, number. While the IEA’s plug number likely stems from chronic underreporting of demand, the EIA’s data suggest that the U.S. agency is overstating the growth of oil supply in recent months. Historically, the EIA has understated U.S. supply growth to the tune of about 140 MBOPD, but since March, the EIA’s plug number on its weekly inventory report has gone from a positive 362 MBOPD in Q1’15 to a negative 113 MBOPD in June. “Put simply,” says Adkins, this “says U.S. oil supply is already[Read More…]

OPEC: Too Close to Call - Oil & Gas 360

Will ISIS be a Factor at Friday’s OPEC Meeting?

“[ISIS] presents a whole new reality for the region, which just isn’t reflected in the oil market at the moment,” said Daniel Yergin, Vice Chairman of IHS, in an interview with The Telegram. “It’s an increasingly grave situation for most of OPEC and the Middle East. At some point the security issues will start to come back into the price of oil.” The Islamic State terror group is already in the backyard of OPEC members like Iraq and Libya, and no country is shortsighted enough not to recognize they could be next. Both of mentioned nations have called on international support in assisting with the ongoing war. Saudi Arabia has been victimized twice recently in two separate suicide bombing attacks, increasing the uneasiness in the region. Commandeering oil refineries has been an effective way to generate revenue for ISIS, and their ability to increase their territory is well-noted. The group is[Read More…]

June 3, 2015 - 7:06 pm Oil and Gas 360 Articles, OPEC, Politics & Opinions
Source: Iraqenergy.org

Iraq Production Reaches New Highs in May

Iraq continues to increase production ahead of OPEC meeting Iraq’s oil production reached record levels in May. The country produced an average of 3.87 MMBOPD, the highest levels in decades, according to Bloomberg. This news comes just days before OPEC’s June meeting, in which the cartel is expected to maintain its current policy of defending market share. Iraq’s oil exports continued to trend upward, closely following production. In March and April, Iraq exported 2.98 MBOPD and 3.08 MBOPD respectively, reports Reuters. Exports reached 3.145 MMBOPD in May, according to an Iraqi Oil Ministry spokesman, said Bloomberg. Iraq’s oil minister in Azerbaijan to strengthen energy ties Iraq signed a Memorandum of Understanding (MoU) with Azerbaijan today, creating the basis for cooperation between the two countries, particularly in the development the oil and gas industry, reports AzerNews. Azerbaijani Energy Minister Natig Aliyev, expressed confidence that the two oil rich countries would open[Read More…]

Rig Counts are Down This Week as Production Slows

Rig Counts are Down This Week as Production Slows

Prices this week hit new highs for the year on news of slowing production in the U.S. The Baker Hughes (ticker: BHI) rig count for the week ended April 17, 2015 showed yet another drop in the number of rigs actively drilling for oil and gas in the United States. The total rig count fell to 954, down about 3% from last week’s count of 988. Of those, 734 were drilling for oil and 217 were drilling for gas. The oil rig count fell by about 3% while the number of rigs drilling for gas was 4% lower than last week’s count despite a small uptick in the week ended April 10, 2015. News this week that U.S. oil production is beginning to slow sent prices up to their highest point yet this year, with West Texas Intermediate (WTI) reaching $56.71 and Brent hitting $63.98 on April 16. Both WTI and[Read More…]

Whiting Petroleum – Done Funded, Drilling Ahead

Whiting Petroleum – Done Funded, Drilling Ahead

Whiting Petroleum (ticker: WLL), the largest E&P producer in the Williston Basin, shored up its balance sheet this week with a series of debt and equity raises. The deals include: Public offering of 35 million shares of common stock at $30.00/share for proceeds of $1.0 billion after deducting underwriter’s discounts and commissions. The underwriter has a 30-day option to purchase an additional 5.25 million shares. Private, Rule 144A, unregistered offering of $1.0 billion aggregate principal amount of 1.25% convertible senior notes due 2020, priced at par. The convertible senior notes will be convertible at an initial conversion rate of 25.6410 shares of Whiting’s common stock per $1,000 principal amount of the convertible senior notes, which is equivalent to an initial conversion price of approximately $39.00, which represents an approximately 30% premium to the public offering price per share of Whiting’s common stock in the concurrent public offering of Whiting’s common[Read More…]

IEA: U.S. Oil Production Approaching a Crossroads

IEA: U.S. Oil Production Approaching a Crossroads

United States oil production and its diminishing storage capacity may lead to another drop in oil prices, according the International Energy Agency’s (IEA) Oil Market Report for March 2015. The Agency revised its oil demand outlook upward, but the increase was offset by a similar revision on the production side. U.S. production is expected to average 12.56 MMBOEPD in 2015, up from February’s estimate of 12.41 MMBOEPD, for a total year-over-year increase of 0.75 MMBOEPD. Global demand was revised upward by to about 1 MMBOEPD, an increase of 0.13 MMBOEPD and is expected to average 93.5 MMBOEPD total in 2015. Oil & Gas 360®’s latest Chart of the Week showed the declining rig count in oil plays, but production is maintaining its upward trend even though there are 34% less rigs in action now as compared to December 2014. The Energy Information Administration (EIA) expects domestic production to flatten in[Read More…]

Production Beginning to Slow in EIA’s March Drilling Productivity Report

Production Beginning to Slow in EIA’s March Drilling Productivity Report

The Energy Information Administration’s (EIA) Drilling Productivity Report, a monthly breakdown on production by basins, typically forecasts production increases across the United States’ seven most prolific plays. The latest edition, released on March 9, 2015, projects production in April to be higher than the current month. However, that increase has slowed dramatically. Production for March is forecasted at 5,613 MBOPD and 45,932 MMcf/d, while April is projected to be 5,614 MBOPD and 46,153 MMcf/d – increases of just 1 MBOPD and 221 MMcf/d, respectively. Out of the four major oil plays (Bakken, Eagle Ford, Niobrara and Permian), only the Permian is expected to increase its volume in April. The “other” three oil fields are projected to lose 23 MBOPD (24.5 MBOEPD, including gas) of volume next month. With domestic production seemingly losing steam, market analysts like John Kemp of Reuters published an article titled “OPEC is winning its Battle with[Read More…]

March 10, 2015 - 6:42 pm Commodity Pricing, Oil and Gas 360 Articles, OPEC
Production Resumes in Libya’s Largest Oilfield

Production Resumes in Libya’s Largest Oilfield

Libya Getting Back on its Feet, For Now Libya’s National Oil Corporation (NOC) said today that its Arabian Gulf Oil Co. (AGOCO) unit restarted production at the Sarir field in the east of the country. Statistics released from Libya’s National Oil Corporation last week showed production from the country is down 80% since 2011, due to disruptions in fields like the Sarir. Sarir field was producing 185 MBOPD, nearly two-thirds of the country’s current output, before the pipeline linking it to its export terminal, Marsa el-Hariga, was attacked last week. An NOC spokesman said Monday that “limited quantities” of Sarir crude had begun flowing to the port of Marsa el-Hariga over the weekend after repairs were made to the pipeline, reports Platts. The attack on the pipeline caused the operating pressure to drop to 130 PSI from 450 PSI, bringing onshore production to a virtual standstill. Cargos being loaded at[Read More…]

February 24, 2015 - 2:06 pm Oil and Gas 360 Articles, OPEC
Chart of the Week: U.S. Production vs. China Demand

Chart of the Week: U.S. Production vs. China Demand

United States crude production is expected to be at its highest since 1986, according to information compiled from Bloomberg and the Energy Information Administration. The increased domestic production has allowed the U.S. to diminish its need for imports – a luxury enjoyed by few countries around the globe. One of those countries on the import market is China, home of the largest population in the world. China, along with India, are expected to supply the bulk of near-term import growth. Its demand for crude has risen every year since 1990 and cracked the 10,000 MBOPD consumption mark in 2012. Some think tanks expected U.S. production to pass that same threshold in the near-term before the oil price slump, placing expectations in a volatile spot. China, meanwhile, will certainly be reaping the benefits of the lower commodity prices, potentially offsetting its 2014 GDP, which was the country’s slowest in 20 years. Important disclosures: The[Read More…]

February 6, 2015 - 6:41 pm Chart of Week, International, Oil and Gas 360 Articles
Oil Production by Country/Region as a Percentage of World Production.  Numbers represent actual production measured in thousands of barrels of oil per day. Chart: Oil & Gas 360®, Data: EIA

Shaking Up the World’s Top Oil Producers

Take a good look at the global oil producers’ scorecard as it stands today. In a year or two, depending on when, how and if global production begins to fall off as a result of lower commodity prices or other forces, the players may change positions. Percent of Global Production This Oil & Gas 360® chart shows the percent of global production by producing region. It includes a bar combining production of all OPEC countries in blue as well as all North American production in red, the largest producing individual country bars and the continent of Africa as a whole. On a country-by-country basis global production is led by the United States, Saudi Arabia and Russia, representing 14%, 13% and 12% of total production, respectively. Large producing countries that are individual OPEC members are marked with an asterisk. The number atop each country bar is its production in thousands of[Read More…]

January 15, 2015 - 6:39 pm Oil and Gas 360 Articles, OPEC
Oil prices turned firmly lower during midday trading on Tuesday. Crude futures were little changed earlier in the session, depressed by a report of record Saudi production but supported by expectations that oil exporters would agree to cut output at an OPEC meeting next week. Oil & Gas 360

Oil Prices: Pain from A Thousand Cuts

Effects from the oil price slide are being celebrated by the average American consumer. AAA reports Americans may save as much as $75 billion in fuel costs in 2015, or $550 per household, which amounts to the lowest in more than a decade. Oxford Economics projects United States GDP will increase by roughly 0.7% in the new oil environment, while countries heavily dependent on hydrocarbon exports (Saudi Arabia and Russia, in particular) will suffer GDP losses in excess of 3.5%. In the oil and gas industry, it is difficult to find a silver lining in the revamped market even though the United States is on track to become the world’s top hydrocarbon producer and crude imports continue to fall. Several E&Ps are cutting back expenditures in 2015, taking a “lay low” approach until prices recover. Guidance reports continue to trickle onto the newswire while others are still evaluating options to[Read More…]

Russia, Iraq Close Out 2014 with 30-Year Record Production

Russia, Iraq Close Out 2014 with 30-Year Record Production

Russia set a post-Soviet production record and Iraq exported the most oil since the 1980s in the month of December, according to a report from Bloomberg. The information, which was acquired from an email by the Russian Energy Ministry, said Russia’s total production for December was 10,667 MBOPD – a month-over-month increase of 0.3%. The United States is the only country to produce greater volume, based on data from the International Energy Agency’s (IEA) latest Oil Market Report. Its production for September 2014 (the most recent official report) averaged 12,300 MBOPD. Preliminary statistics showed Russia’s export level actually declined but may be revised once the official report is released. Shipments from Gazprom Neft were not reflected. The state-owned energy giant announced it plans on trimming its expenditures for the second straight year in a news release issued earlier this week. Alexander Novak, Russia’s energy minister, says the country will maintain[Read More…]

January 2, 2015 - 6:36 pm International, Oil and Gas 360 Articles