US crude inventories posted an unexpected build of 5.8 million barrels last week, versus analyst expectations for a 1.7-million-barrel decline, according to the Energy Information Administration. Gasoline stocks increased by 1.9 million barrels, while distillate supplies dropped by 1 million barrels.
Chinese state oil giant Sinopec has bought a record 16 million barrels of US crude oil to load in June as part of China's effort to shrink its trade deficit with the US. The purchase, valued at about $1.1 billion at current oil prices, would significantly boost China's imports of US crude from the roughly 330,000-barrel-per-day average for the six months ending in February.
Continental Resources Chairman and CEO Harold Hamm believes US oil prices have more room to increase in the future, potentially crossing the $80-per-barrel mark. "We're not looking at $100 oil in the future, or probably $90 oil, but it certainly could be in the mid-$70s and low $80s," Hamm said in an interview.
Multiple factors are holding down US oil prices and contributing to a widening spread between WTI and Brent, write Bloomberg Intelligence analysts Peter Pulikkan and Fernando Valle. The phenomenon can be attributed to strong shale output, tapped-out refining capacity and export growth that's not quite fast enough to keep up, they write.
Texas added almost 40,000 jobs in April, marking the 22nd consecutive month of growth, while the unemployment rate edged up slightly from 4% in March to 4.1% in April, according to the Texas Workforce Commission. The manufacturing sector, which is closely linked to the oil and natural gas industry, saw the largest gains with 8,600 job additions, while oil and gas and energy services added almost 5,000 jobs during the month.
Remedies to Fluid Film Bearing Damage When fluid film bearings suffer damage, the cause may be obscure and, frequently, external to the bearing. Common causes include abrasives, overload and overheating, lack or loss of lubricant, loss of clearance, electrical discharge, and misalignment. In the diagnosis and remedy of causes, start with the Bearing Damage Index.
Offshore oil drilling is showing some signs of recovery, but the business remains costly and risky when compared with onshore shale drilling, and operators are not yet convinced that offshore efforts make sense, analysts say. Higher oil prices are helping the offshore industry, but a comeback will be evident when more contracts are awarded, the offshore supply deficit becomes clear and investors show stronger interest.
Marathon Petroleum, the second-biggest US refiner, has reportedly applied for a hardship waiver asking the Environmental Protection Agency to exempt one of its facilities from complying with the Renewable Fuel Standard for the 2017 calendar year.
A court hearing on the Keystone XL oil pipeline is set for today in Montana, during which attorneys for the Trump administration are expected to argue in favor of the controversial project. "While the importance of climate change was considered, the interests of energy security and economic development outweighed those concerns," the attorneys said recently.
The operator course is intended to familiarize the participant with lifting loads with slings, rigging hardware and safety concerns and is intended to give the individual the knowledge and skills required to competently act as a Qualified Crane Operator and effectively conduct safe lifting operation. Presented by Thunder Oilfield Services (Thailand), June 19 to 21, July 16 to 19; Australasian Training Co. (Singapore), June 25 to 29, June 30. To learn more and to register, visit the API-U Calendar.
API launches 18LCM registration program for product life cycle management systems
Industry service organizations now have a certification that provides their customers the benefit of knowing that the life cycle of products used in the field has been managed according to the API Standard 18LCM, Product Life Cycle Management System Requirements for the Petroleum and Natural Gas Industries. Get a quote for your organization.