Oil-related projects worth $1.5 trillion unlikely to be built, Wood Mackenzie projects

Oil-related projects in North America worth roughly around $1.5 trillion are now considered uneconomic and are unlikely to be brought online, according to a report published Monday by consultant Wood Mackenzie. Oil producers are targeting cost cuts of roughly 20%-30% due to the biggest slump in oil prices since the 1980s, but they also have slashed investment programs and defer projects that remain too expensive at crude s current price level of around $50 a barrel. Spending is down by $220 billion for 2015 and 2016, compared with Wood Mackenzie’s pre-oil-price-crash projections, Kallanish Energy finds. Much of the drop in spending has been focused on projects onshore North America. Additional measures are needed to manage costs, said James Webb, Wood Mackenzie s Upstream research manager, warning that simply squeezing the service sector won t be sufficient to meet the industry s cost-reduction goals. The consultancy said most new oil projects remain uneconomic. Wood Mackenzie estim
http://www.shaledirectories.com/blog/oil-related-projects-worth-1-5-trillion-unlikely-to-be-built-wood-mackenzie-projects/

Williams announces $350,000 in Atlantic Sunrise Community Grants

With hopes that our politicians in Harrisburg working to approve a balanced budget (we heard we’ll see snow before a PA budget is approved) are aware of the generosity of Williams, a pipeline company now working in PA.   While it may not seem like much each recipient will now be able to fund much needed projects in community.   Thank you Cabot for sharing this information and your generous contributions throughout PA.   For more information about Cabot visit, www. http://wellsaidcabot.com. Williams announces $350,000 in Atlantic Sunrise Community Grants Williams today announced the recipients of the Atlantic Sunrise Community Grant Program, awarding more than $350,000 to 49 organizations that reside in, and/or provide services to communities where the proposed Atlantic Sunrise project would be constructed and operated. Grants up to $10,000 per applicant were awarded to eligible organizations to fund projects that provide benefit to local communities or the environmental. “Th
http://www.shaledirectories.com/blog/williams-announces-350000-in-atlantic-sunrise-community-grants/

DOJ sees problems with Halliburton’s deal for Baker Hughes

Halliburton’s efforts to gain regulatory approval of its $35 billion buyout of Baker Hughes may have gotten a bit tougher, the “New York Post” reported. Houston-based oil-field services company Halliburton must find a single buyer for roughly $7.5 billion of assets which must be divested — instead of selling them to different suitors, the Department of Justice has determined, two sources close to the situation said. Last November, Halliburton, in announcing the deal that would combine the No. 2 and No. 3 oilfield service companies (behind Schlumberger), agreed to sell businesses that generate up to $7.5 billion in revenue. Justice’s single-buyer mandate leaves the $31.7 billion market-cap company with few options other than selling the package of assets to General Electric or Siemens, sources said. “Finding a single buyer will be a challenge,” a source close to the situation — and not directly working for or against the deal — said, according to the Post. Last week,
http://www.shaledirectories.com/blog/doj-sees-problems-with-halliburtons-deal-for-baker-hughes/

U.S. natural gas production in August held at July levels

U.S. natural gas production in August held at July levels at 72.1 Bcf/d: Bentek Natural gas production in the Lower 48 States averaged 72.1 billion cubic feet per day (Bcf/d) in August, down less than 1% compared to the July average, according to Bentek Energy. U.S. rig activity, which surged forward in late July continued to strengthen in August, topping 1,000 active rigs for the first time since April and averaging roughly 1,015 rigs, said Sami Yahya, a Bentek energy analyst. Most of the increase in active rig count came from the Permian, where the region added 21 rigs over the July number for a total of 276 rigs. Yahya noted there is a close correlation between the number of active rigs and West Texas Intermediate (WTI) spot prices, where directionally the former typically follows the latter after a two- or three-month of lag. The jump in Permian active rigs seen in August can likely be attributed to WTI prices topping the $60/Bbl mark back in May and June, said Yahya, And as inter
http://www.shaledirectories.com/blog/u-s-natural-gas-production-in-august-held-at-july-levels/

ConocoPhillips cutting 1,800 jobs, as oil price plunge continues

ConocoPhillips, the fourth-largest U.S. oil company, plans to reduce its workforce by 10%, the latest example of the impact of the ongoing impact of low crude oil prices. A majority of the 1,800 jobs being lost will come from North America, including more than 500 from Houston, Daren Beaudo, a spokesman for the Houston-based oil and gas producer, said Tuesday. “Our industry is undergoing a dramatic downturn, which has caused us to look at our future workforce needs,” he said. The announced cuts at ConocoPhillips comes only months after a first round of cuts reduced staff by 5%. The cumulative impact of the reductions, to be felt most severely in North America, will be roughly 2,810 jobs, Kallanish Energy finds. As oil prices have plunged by more than half since last year’s high, energy companies around the world have laid off more than 120,000 workers and reduced spending by more than $114 billion. ConocoPhillips’s cuts follow earlier reductions at exploration-production and s
http://www.shaledirectories.com/blog/conocophillips-cutting-1800-jobs-as-oil-price-plunge-continues/

How to Keep Your Business Current on Oil and Gas Developments?

The price swings in the oil market are making it difficult for companies to plan on numerous levels. While the price swings are daunting enough, in many states and on the federal level, the more regulations and new taxes are making the decision-making more vexing. The only way for businesses to cope in this environment is to keep informed. This fall there are a number of expos, conferences and seminars with industry speakers and government officials. The focus of these events deals with all facets of the supply chain – upstream, midstream and downstream in the Marcellus, Utica and Eagle Ford Shale Plays. One of your key takeaways from these events should be to support the industry. It seems the industry is under attack more than ever with a special focus on the midstream business. Many communities and businesses through the east coast want the lower priced Marcellus and Utica natural gas, but when it comes to pipeline construction, the “NIMBY” (Not In My Backyard) effect takes h
http://www.shaledirectories.com/blog/how-to-keep-your-business-current-on-oil-and-gas-developments/

Observations on Oil and Natural Gas Price Swings

As you know, I’m relatively new to the oil and gas industry. We started Shale Directories in November 2009. This sharp price decline in oil is the first one I experienced since we started Shale Directories. We saw a deep price decline in natural gas in 2012 when it went under $2.00. It has recovered somewhat, but seems to be locked in a trading range from $2.65 to $3.00. In fact, natural gas has weathered the current declines pretty well. In looking at the current state of the oil and gas industry, here are some of my thoughts: • The price of oil. It dipped below $40 this week, but seems to be rebounding. The question is where is the new “norm.” I’ve heard $60 a barrel is the new $100 a barrel. How long can the Saudis continue to keep pumping to keep prices depressed? It may not too much longer. Here are some observations: o The Saudis have issued bonds recently for the first time in since 2007 and more bond issues could be in the future. (Shale Directories, 8/15/15) o Saudi
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