The Heat Is On – Algonquin, Transco Pipeline Expansions Feed More Marcellus Gas to New England, New York Markets

Several large-scale gas pipeline expansions targeting the New England and New York City markets have been sidelined in the past year, either due to insufficient financial backing or the challenges of regulatory rigmarole in the region. But in recent weeks, a couple of smaller-scale projects along existing rights-of-way have managed to cross the finish line, allowing incremental gas supplies to trickle into the region. The new pipeline capacity will provide natural gas utilities and power generators in the region with greater access to additional gas supplies from the nearby Marcellus Shale this winter. Today, we look at recent capacity additions and their potential impacts.

Source: RBN Energy

 

The US Oversupply of Oil is Ending: $67+ WTI by Early 2018

The US Over-Supply of Oil is Ending, Labyrinth Consulting Services, November 17, 2017 Comparative inventory (“CI”) has been dramatically reduced in 2017 Levels have fallen 165mmb since February and are now approaching the 5-year average for the first time in nearly 3 years Causes of the US inventory drawdown are clear: increased exports of crude oil and greater domestic consumption Comparative Inventory Yield Curve Predicts $67+ WTI Prices by January 2018 Interpreted yield curve that correlates CI and WTI price is developed by cross plotting the same data without the time dimension Yield curve may provide price solutions to inventory reduction assumptions in the near term If CI continues to fall at the 9-month average of 4mmb/week, oil prices may be approximately $67/bbl by end of December If CI falls at the 8mmb/week average since late September, WTI could approach levels not seen since before the price collapse in late 2014 Crude Oil Exports and the Brent-WTI Spread Crude oil exports for the 1H17 averaged 0.8mmb/d but rose to 1.8mmb/d in Sept and Oct Increased exports now average 7-12mmb/week and contribute substantially to reduced inventory levels Higher export levels correlate with the increased spread between Brent and WTI prices that […]

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Source: Investor Almanac

 

Wattenberg: Boulder County Files for Dismissal of 8 North’s Additional Density Applications

Colorado county adjacent to Weld is fighting to stop oil and gas development on its side of the line In the Wattenberg field, Boulder County has filed motions to dismiss 8 North LLC’s applications for additional density, arguing that the COGCC cannot grant them when the drilling and spacing units have not yet been established and the authorized well for[Read More…]
Source: Oil & Gas 360

 

Multi-client 2D seismic survey under way offshore Mozambique

Spectrum, on behalf of the Institute of National Petroleum, has started a multi-client 2D seismic survey offshore Mozambique.


Source: Offshore

 

H&P's Acquisition Of MagVAR To Bring Shale Drilling Accuracy To New Level

Helmerich & Payne Inc. (NYSE: HP) said Dec. 8 it acquired Magnetic Variation Services LLC (MagVAR), a firm focused on enhancing the accuracy of directional drilling and wellbore optimization.

The Tulsa, Okla.-based company, also known as H&P, didn’t disclose the financial terms of the acquisition.

MagVAR was founded in 2010 by Stefan Maus, a senior scientist at the University of Colorado. Through comprehensive 3-D geomagnetic reference modeling, the company provides measurement while drilling (MWD) survey corrections by identifying and quantifying MWD tool measurement errors in real time.
Source: Oil & Gas Investor

 

Oil Rises On China Demand, But Weekly Losses Loom

Oil prices rose more than 1% on Dec. 8, helped by rising Chinese crude demand and threats of a strike in Africa’s largest oil exporter.

But prices were still on track for weekly losses of up to 1.9% amid concerns that rising U.S. production could undermine OPEC-led supply cuts.

By 12:32 p.m. CST (18:32 GMT), Brent crude was up 99 cents or 1.6% at $63.25 a barrel (bbl), but heading for a weekly slide of 0.9%. U.S. West Texas Intermediate (WTI) crude was at $57.25/bbl, up 56 cents or 1% on the day and on track for a 1.9% loss on the week.
Source: Oil & Gas Investor

 

Ensign Energy Releases 2018 CapEx Budget, Brings on New Board Member

Ensign Energy Services Inc. (ticker: ESI) announced a CapEx of $64 million, comprised of $43 million for capital maintenance on the fleet and $21 million for equipment and optimization upgrades to the current fleet. Ensign said that the capital plan focuses on the continuation of appropriate certification and preventative maintenance of its high spec fleet, in addition to the selective[Read More…]
Source: Oil & Gas 360

 

US Drillers Add Oil Rigs For Third Straight Week

U.S. energy companies this week added oil rigs for a third week in a row, the longest string of increases since summer, as higher crude prices prompt drillers to return to the well pad after a break in the autumn.

Drillers added two oil rigs in the week to Dec. 8, bringing the total count up to 751, the highest level since September, Baker Hughes, a GE company (NYSE: BHGE), said in its report Dec. 8.

The U.S. rig count, an early indicator of future output, is still much higher than a year ago when only 498 rigs were active after energy companies boosted spending plans for 2017. This came as crude started recovering from a two-year price crash around the same time OPEC agreed to the production cuts a year ago.
Source: Oil & Gas Investor

 

Wintershall, DEA confirm merger intention

BASF and LetterOne have signed a letter of intent to merge their oil and gas subsidiaries Wintershall and DEA Deutsche Erdöl.


Source: Offshore

 

Chisholm Rolls On With Delaware Basin Bolt-On

Private E&P Chisholm Energy Holdings LLC will expand it Delaware Basin position to more than 30,000 net acres through the acquisition of acreage from Resource Rock Exploration LLC, the company said Dec. 7.

Chisholm offered few details about the acreage and transaction terms weren’t disclosed.  The Fort Worth, Texas-based E&P said the acreage contains horizontal reservoir targets in the Bone Spring and Wolfcamp formations in Eddy County, N.M.

Resource Rock holds about 16,500 net acres in the Delaware Basin, interests in more than 100 wells and 3-D seismic data covering about 300 square miles, according to the company’s website.
Source: Oil & Gas Investor

 

CGG to expand multi-client airborne GravMag program offshore Mexico

CGG Multi-Physics has completed acquisition, processing, and interpretation of a multi-client airborne gravity and magnetic survey of about 38,000 line km (23,612 mi) over the Perdido foldbelt.


Source: Offshore

 

EPA Chief Says Public Climate Debate May Be Launched In January

The U.S. Environmental Protection Agency could launch a public debate about climate change as soon as January, Administrator Scott Pruitt said on Dec. 7, as the agency unwinds Obama-era initiatives to fight global warming.
Source: Oil & Gas Investor

 

New Data Debunks Claims that Fracking Drives Down Property Values

The Wall Street Journal published an infographic this week based on new Moody’s Investors Service data  that further debunks the oft-repeated “Keep It In the Ground” movement claim that fracking drives down property values.

The WSJ graphic shows state-by-state property value trends since 2007, which happens to be about the time the U.S. shale revolution took off.

Notably, eight of the nine states that have experienced the most robust property value growth over the past decade— an increase of 40 percent or more since 2007, according to the graphic — are major oil and natural gas producing states.

Seven of those states — Texas, North Dakota, New Mexico, Louisiana, Oklahoma, Wyoming and Montana — have had significant shale development since 2007 (fracking has been conducted in Alaska as well, though not on a major scale).

Also of note is the fact that Pennsylvania, which has emerged as the second most prolific natural gas producer in the U.S. thanks to fracking, has seen more significant property value growth since 2007 (21-40 percent) than neighboring New York (0-20 percent), which has banned fracking.

All told, a vast majority of major U.S. shale states have seen their property values surge — the complete opposite of what fracking opponents have repeatedly claimed.

And this is just the latest real world data debunking these unfounded claims.

For instance, in Tarrant County, Texas — which is the top natural gas producing county in what is by far the most prolific oil and natural gas producing state in the U.S. — the overall market value of property jumped 10.6 percent this year to $219.4 billion from $198.3 billion. This follows a 14 percent jump in 2016. The rest of the Lone Star State isn’t far behind, as home values have gone up 7.1 percent over last year.

In Colorado, which is a top-10 oil and gas producing state, property values have increased 21-40 percent since 2007, according to the WSJ graphic. This data is in line with a 2016 Ballotpedia study that found “no definitive evidence” that oil and gas development is negatively impacting Colorado property values. The study also noted that “homes near oil and gas development in some cases have higher sales prices and values than homes without.”

In Weld County, Colorado’s top oil producing county, a 2015 EID investigation found the median home value rose 15.3 percent in 2014. Weld County Assessor Chris Woodruff told EID that:

“We haven’t seen that proximity to oil and gas operations has caused a loss in value. We’re not seeing that.”

EID has also previously noted that two of Pennsylvania’s most heavily drilled counties, Bradford and Washington, saw median house values increase 61.5 percent and 70 percent, respectively, from 2000 to 2013. These increases came at the same time the combined shale well counts in those counties went from zero to 2,800.

Similarly, home values have gone up 6 percent in Montana, 4 percent in New Mexico, 3.2 percent in Oklahoma and 2.6 percent in Wyoming over the past year at the same time drilling has increased significantly in each of those states.

Clearly, if anti-fracking activists’ claims that fracking drives down property values were true, this data would be trending in the opposite direction. But this WSJ graphic plainly illustrates the fact that property values are actually increasing in areas with significant shale development, busting another tired “Keep It In The Ground” myth.

 

 

 

 

 

Source: Energy In Depth

 

Truckin' – Can the Trucking Sector's Shift to CNG and LNG Survive Low Diesel Prices?

U.S. trucking companies, trash haulers and transit agencies continue to invest in new vehicles fueled by compressed natural gas or liquefied natural gas, in part to meet corporate or agency carbon-footprint goals. But the economic rationale for switching trucks and buses from diesel to CNG or LNG is weaker than it was a few years ago, when diesel cost two-thirds more than natural gas fuels on a per-BTU basis — prices for diesel, CNG and LNG are now in the same ballpark. Also, developing regional or national networks of CNG/LNG fueling stations doesn’t come cheap. Today, we discuss the growing use of natural gas in trucks and buses — and threats to that trend.

Source: RBN Energy

 

Europe and Middle East Rig Counts Fall, Latin America Rises

Total rig count down nine Baker Hughes released its monthly International Rig Count today, outlining how drilling activity changed in November. Overall nine rigs shut down in November. There are now a total of 942 rigs active internationally. The decrease in activity was due to slowing operations in Europe and the Middle East, which accounted for a combined decrease of[Read More…]
Source: Oil & Gas 360

 

Delmar, MDL form GoM partnership

Delmar Systems Inc. has entered into a partnership with Maritime Developments Ltd. to set up a flex-lay base in the US.


Source: Offshore

 

US Delays Rule On Methane Emissions From Federal Lands

The Trump administration will delay an Obama-era rule limiting emissions of the powerful greenhouse gas methane from oil and gas operations on federal and tribal lands, it said Dec. 7, a move slammed by environmentalists.

The Bureau of Land Management, an office of the Department of Interior, will officially suspend the rule Dec. 8 to “avoid imposing likely considerable and immediate compliance costs on operators for requirements that may be rescinded or significantly revised in the near future,” it said in a document to be published Dec. 8.

Implementation will be delayed one year until Jan. 17, 2019.
Source: Oil & Gas Investor

 

Chevron Corporation (CVX) Releases 2018 CapEx Budget and a $1 Million Donation

U.S. Upstream getting $6.6 billion; international upstream $9.2 billion $5.5 billion for the company’s share of expenditures by affiliated companies $2.2 billion of planned capital spending is associated with the company’s downstream businesses that refine, market and transport fuels, and manufacture and distribute lubricants, additives and petrochemicals $1 million was donated to the Oakland-based BASIC Fund (details below) “Our 2018[Read More…]
Source: Oil & Gas 360

 

Investigation under way into fatality onboard drillship in the GoM

The Bureau of Safety and Environmental Enforcement and US Coast Guard are investigating the fatality of a worker onboard the Petrobras 10000 drillship in the Gulf of Mexico.


Source: Offshore

 

CB&I Scores $95 Million Saudi Aramco Shell Refinery Contract

CB&I (ticker: CBI) won a contract for more than $95 million from the Aramco-Shell JV – Saudi Aramco Shell Refinery (SASREF). The scope of work includes the engineering, procurement and construction management for SASREF’s modernization and expansion of its existing refinery in Al-Jubail city, Saudi Arabia. “The relationship between CB&I and SASREF extends back for more than a decade, and[Read More…]
Source: Oil & Gas 360