US shale production growth will likely disappoint in the future and climb at a slower-than-expected rate, said Mark Papa, former CEO of EOG Resources and current chairman and CEO of Centennial Resource Development. The weaker performance may be due to a lack of Tier 1 acreage, as Papa estimates that 70% of the better drilling locations in the Eagle Ford Shale and Bakken Shale have already been drilled.
The Permian Basin's infrastructure bottlenecks and surging production levels are contributing to a jump in demand for diesel, which fuels the drilling rigs as wells as the trucks increasingly used to haul crude to refineries, pipelines and storage tanks. The rise in diesel demand in West Texas and New Mexico has prompted some midstream companies, including Magellan Midstream Partners and Holly Energy Partners, to consider projects to increase refined products capacity in the region.
US oil producers are stepping up hedging activity, with 16% of 2019 oil production now hedged at $60 per barrel, an increase from 9% of 2019 output hedged at the end of the fourth quarter, according to Goldman Sachs. "We believe producers may continue to tactically add oil hedges at current futures to mitigate oil price volatility in 2019, which could support greater capex," the bank said.
Appalachia shale producer Rex Energy has filed for Chapter 11 bankruptcy protection after a strategic review and talks with lenders and advisers determined this would be the best course of action. As a result, the company will sell all of its remaining assets, which consisted of 98,000 net acres in the Appalachian Basin as of January.
Activist investors Carl Icahn and Corvex Management have joined forces in a campaign to push Permian Basin pure-play Energen to seek a buyer and expressed interest in actually acquiring the company. Icahn says the company's stock is undervalued and could be worth over $100 per share, up from about $70 per share currently.
The Texas Alliance of Energy Producers is calling on the Trump administration to grant steel tariff exemptions to several countries and get rid of import quotas. "The imposition of quotas will very likely raise the cost of oilfield steel products to American domestic producers to a much greater extent than tariffs," said TAEP President and Chief of Staff John Tintera.
The Longmont, Colo., City Council on Tuesday voted 6-1 in favor of a plan to pay $3 million to oil and natural gas companies TOP Operating and Cub Creek Energy in a move that would put an end to surface drilling within the city and on city-owned properties.
The US maintained the title of the world's No. 1 producer of petroleum and natural gas hydrocarbons in 2017, as production levels soared to new records, according to the Energy Information Administration. US petroleum production grew by 745,000 barrels per day last year as oil prices rallied to about $65 per barrel, while dry natural gas production was up by 5.7 billion cubic feet per day in the fourth quarter of 2017 compared with the first quarter.
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.