Sunday, October 22, 2017

Working-rig count drops by baker’s dozen

The number of rigs working onshore in the Lower 48 U.S. states last week dropped by the highest number in roughly 19 months, Kallanish Energy calculates from data provide by Baker Hughes, a GE company.

Source: Daily Dose of News

Friday, October 20, 2017

US Oil Drillers Cut Rigs For Third Straight Week

The U.S. oil rig count fell for a third week in a row, extending a two-month drilling decline, although producers have sharply ramped up bets against a fall in oil prices, which could spur another investment surge. The oil rig count fell seven to 736 in the week to Oct. 20, the lowest level since June, Baker Hughes, a GE company, said in its closely followed report. The rig count, an early indicator of future output, is still much higher than a year ago when only 443 rigs were active after energy companies boosted spending plans as crude recovered from a two-year price crash. The recovery in drilling, however, lasted for 14 months before stalling in August and September after producers trimmed spending plans due to softer prices. U.S. crude futures have averaged over $49 a barrel so far in 2017, easily topping last year’s $43.47 average. Looking ahead, futures were trading around $51 for the balance of the year and $52 for calendar 2018.
Source: Daily Dose of News

Thursday, October 19, 2017

BP's Chairman Carl-Henric Svanberg To Step Down

Carl-Henric Svanberg, BP Plc's (NYSE: BP) chairman who helped navigate the British company through the 2010 Deepwater Horizon oil spill, announced his intention to step down after nearly eight years in the post. BP rarely replaces both its chairman and CEO in close succession, so the decision means current CEO Bob Dudley, who also took office in 2010, is likely to remain in his position for some time yet, according to company sources. Svanberg will chair the annual general meeting to be held in May 2018 and will remain in his position until a successor is in the post, the company said in a statement.
Source: Daily Dose of News

Wednesday, October 18, 2017

ExxonMobil Acquires Crude Terminal In Permian Basin

Exxon Mobil Corp. announced Oct. 18 that it has acquired a crude oil terminal in Wink, Texas from Genesis Energy LP. The terminal is in the rapidly growing Delaware Basin, part of Permian Basin—one of the most prolific plays in the U.S. The terminal is strategically positioned to handle Permian Basin crude oil and condensate for transport to Gulf Coast refineries and marine export terminals. The facility is interconnected to the Plains Alpha Crude Connector pipeline system and is permitted for 100,000 barrels per day of throughput with the ability to expand.
Source: Daily Dose of News

Tuesday, October 17, 2017

CEO Tony Sanchez’s A&D Strategy: Go With The Cash Flow

DALLAS—CEO Tony Sanchez unabashedly admits the good and bad of Sanchez Energy Corp.’s (NYSE: SN) deal history—the luck, the mistakes and the audacity of assets bought, sold or overlooked.   The Houston-based company has taken risks while making a point to avoid a cash flow catastrophe by acquiring assets that immediately make money.   “We like to buy assets that we can protect our downside, and that comes in the form of a lot of producing wells with stable production cash flow, to underpin our analysis,” Sanchez told an audience at Oil and Gas Investor’s A&D Strategies and Opportunities conference. “So, if we are wrong, we have production to back us up.”   In contrast, the rash of Permian Basin deals that have commanded the oil industry’s attention has been acquisitions for undeveloped acreage. Only some included production of more than 10,000 barrels of oil equivalent per day (boe/d), according to Moody’s Investors Service.  
Source: Daily Dose of News

Monday, October 16, 2017

OPEC, US Oil Markets At Odds

HOUSTON—Differing cost structures between the U.S. and OPEC oil markets have been significant in causing the two to move in opposing paths, according to Ashley Petersen, senior oil market analysts at Stratas Advisors, who spoke with Hart Energy following the recent “The Bull Returns - Where Do Oil Markets Go From Here?” webinar. Petersen added that while U.S. producers are basically producing at will OPEC has stuck to following its supply deal. Despite U.S. producers having fewer export constraints now, she said, exporting crude will eventually be more challenging and expensive for the U.S. than for OPEC. Cost constraints, including the rising costs for fracturing crews, sand, fluids and rigs, are problems the U.S. market faces due to producers primary use of large-scale hydraulic fracturing, Petersen said.
Source: Daily Dose of News

Sunday, October 15, 2017

Working gas in storage rises 2.5%: EIA

The volume of working gas placed in storage during the week ended Oct. 6, rose 2.5% from the previous week, data from the Energy Information Administration shows.

Source: Daily Dose of News