Every year, oil and gas companies are required by the Securities Exchange Commission (SEC) to report their proved oil and gas reserves. By reporting these reserves, companies give their investors a meaningful understanding of the resources the company controls that it believes it could economically produce, establishing the size of the company’s reserves. To qualify under SEC guidelines as “proved
Oil continues climb Oil prices continued to climb today, following a trend from late last week. West Texas Intermediate for October 2015 was trading at $47.50 per barrel today, up about $10 from last Monday’s lows. Last week, better than expected economic data, improvements in the Chinese economy and an unexpected draw on crude oil led to both WTI and
Concerns in China push global markets down China’s Shanghai Composite index saw the single largest one-day percentage loss since 2007 earlier today, shedding 8.5% of its value. Even as Chinese authorities allowed pension funds managed by local governments to invest in the stock market for the first time, potentially channeling hundreds of billions of yuan into the country’s market, concerns
Lower oil prices push liquid storage levels higher As global oil production continues to outpace demand, storage levels for petroleum and other liquids has grown at a pace not seen in 17 years. Total global liquids inventories are estimated to have grown by 2.3 MMBOPD through the first seven months of 2015, the highest level of inventory builds through July
CIBC’s Katherine Spector: “In the very short-term, while there may be a few more dollars of downside in the crude price, increasingly lopsided futures market positioning suggests that an end is probably near.” The world will need more oil from OPEC, but not as much as they are producing The most recent oil market outlook released by Canadian Imperial Bank
The EIA’s Short-Term Energy Outlook shows declining production as prices drop The U.S. Energy Information Administration (EIA) released its July Short-Term Energy Outlook (STEO) today, showing lower production in the month of July as prices continue their downward trend. The EIA reported that U.S. crude oil production declined by 100 MBOPD in July compared with June. Production is expected to
“The industry is set for a second straight year of painful austerity” Overall, WTI has declined roughly 25% just from the end of June, when prices were hovering around $60. The uneasiness plaguing the oil and gas sector have been compounded with the release of Q2’15 earnings results, as more companies announced project curtailments, budget adjustments and more layoffs. In
Are we in the Middle of a V-Shaped Recovery that’s N-Shaped? “Prices are too low for everybody”: Saudi Oil Chairman Oil prices have been beaten down enough. “Notorious” is an accurate descriptor of the oil and gas industry. When business is good, business is good. When it’s not… well, the ugly side of the industry rears its head. As earnings
WTI closed higher for the first time in five sessions yesterday The front month West Texas Intermediate contract is up $1.25 from yesterday’s close of $47.98 per barrel. The 2.3% increase in WTI front month contracts marked the first time in five sessions that the price of the U.S. crude benchmark finished the day strong than when it started. The
Oil prices break the 100-day moving average Both Brent crude and West Texas Intermediate (WTI) saw a sharp fall on July 6, 2015, resulting from a variety of negative factors. WTI closed at $52.71, a 7.5% drop, while Brent tumbled 8.5% to $56.81. Both the international and U.S. benchmarks broke below the 100-day moving averages. The WTI drop is the
The price of West Texas Intermediate (WTI) closed at a discount of $3.09 to Brent on June 19, 2015. The gap is the lowest in five months, when the spread narrowed to $2.76 at the closing of January 21. WTI prices have greatly stabilized in recent months as production has plateaued. Rig counts fell by only two this week, according
Six Straight Weeks of Decline The Department of Energy reported a draw of (6,812) MBO from United States crude oil inventories for the week ended June 5, 2015, marking the largest draw of the year and the most since the week ended July 11, 2014. Inventories have now declined for six straight weeks, and amount of stored oil has dropped
