Fifty top US oil companies collectively spent $2 billion more than they generated in the second quarter, according to FactSet, but production forecasts were largely unchanged despite the increase in spending, a sign that US oil production growth may be slowing down. "Many companies have promised to live within cash flow and grow by 10% or 20%, and it's looking more and more like some are going to have to choose between the two," said Leigh Goehring, managing partner at investment firm Goehring & Rozencwajg.
US natural gas pipeline exports to Mexico hit a record 4.9 billion cubic feet per day in August, but delays in pipeline completions on Mexico's side of the border are limiting gas flows. To meet their needs, Mexican buyers are depending on more expensive US liquefied natural gas and are on pace to import 188.9 billion cubic feet of it this year, up from 140.3 billion cubic feet in 2017.
ExxonMobil has committed to ship up to 450 million cubic feet of natural gas per day on the proposed joint Kinder Morgan-EagleClaw Permian Highway Pipeline. The $2 billion, 430-mile pipeline will have a capacity of 2 billion cubic feet per day and is expected to enter service in late 2020.
Partial service on Plains All American Pipeline's Sunrise expansion project and Cactus II line in the Permian Basin will begin earlier than planned, in the fourth quarter of 2018 and the third quarter of 2019, respectively. Plains is adding about 500,000 barrels per day of capacity to Sunrise, while Cactus II from the Permian to Corpus Christi, Texas, will be able to carry 670,000 bpd when it begins full service in April 2020.
US drillers deployed 13 more rigs last week, bringing the combined count to 1,057, including 869 rigs drilling for oil, according to Baker Hughes. New Mexico gained five rigs and Oklahoma and Alaska added two rigs each, while Texas lost two.
Next week's US auction of Gulf of Mexico exploration leases will be the first since Interior Secretary Ryan Zinke announced in April that deepwater royalty rates would remain at 18.75%. Oil companies, which called for lower royalty payments for deepwater sites, may have held off on bidding in a March auction until the government made a decision, a Wood Mackenzie analyst says.
Opening the waters off New York's Atlantic coastline to drilling would be an "act of insanity," said Gov. Andrew Cuomo, who pledged to do everything in his power to block any federal effort in this direction.
The Bureau of Land Management plans to study the impact of hydraulic fracturing on public land in California as the agency considers allowing fracking and drilling on some 1.6 million acres across several counties including Santa Barbara, Fresno and San Luis Obispo.
The premier program offered by API WorkSafe™ is the Service Station Contractor Safety Program that identifies contractor personnel who have passed a standardized examination covering the latest service station industry safety practices, based on API Recommended Practice 1646: Safe Work Practices for Contractors Working at Retail Petroleum/Convenience Facilities. The program provides awareness-level training on key safety issues found at petroleum retail job sites.
Coming soon: New interactive course covering API RP 1646, 2nd Ed. To learn more, visit the website.
PIX and Pipeline Integrity Workshop: Oct. 2 to 3, 2018
The Annual Pipeline Information eXchange (PIX) provides operators with a learning and sharing opportunity about pipeline incidents. PIX pipeline integrity personnel are invited to discuss recent API documents that have been completed, providing industry with valuable guidance on various aspects of integrity management. The exchange will also detail upcoming changes to existing documents, as well as new RPs related to pipeline integrity.