Brent crude futures fell 0.9% to $79.29 per barrel Thursday, the lowest level since Sept. 21, while West Texas Intermediate for November delivery settled 1.6% lower to $68.65 per barrel after the Energy Information Administration reported a large US crude inventory build. Crude oil "stocks are rising in the U.S. and the reason is because pipes out of the US for exports are maxed out while US production is rising," said Bjarne Schieldrop, SEB Markets' chief commodities analyst.
A capital commitment from Charon System Advisors gives JupiterMLP sufficient funding to construct a crude oil pipeline from the Permian Basin to Brownsville, Texas. The pipeline will be able to ship one million oil barrels per day to Brownsville, where JupiterMLP is building more than 2.8 million barrels of storage and has secured government approval to load and unload vessels of up to 65,000 deadweight tons.
Earthstone Energy has struck two deals to acquire 20,800 net acres in the Midland portion of the Permian Basin from Sabalo Energy for $950 million in cash and stock. The asset package includes production of 11,200 barrels of oil equivalent per day, 488 gross operated horizontal drilling locations and 349 gross non-operated horizontal drilling locations.
The joint venture between Dauphine Midstream and Mercuria Energy Group, Pin Oak, has inked a 10-year deal with the Port of Corpus Christi in Texas to load Suezmax tankers at one of the port's crude oil export docks. Pin Oak will use Public Oil Dock 14, which has a minimum load of 40,000 barrels of product hourly.
The Permian Basin drilling boom has given rise to a new, lighter variety of crude called West Texas Intermediate Light, which has an API gravity of 45-50 degrees, compared with 38-42 degrees for WTI Midland. Producers began selling the new crude grade in September, and initial volumes were estimated at 100,000 barrels per day, said sources familiar with the matter.
Sample natural gas production from the East Texas part of the Haynesville Shale has risen around 55% since January to a record 2.5 billion cubic feet per day in October, putting it on track to surpass 3 billion cubic feet per day by the end of 2019. Surging investment from oil majors BP and ExxonMobil, which control 13 of the basin's 21 rigs, could make the East Texas Haynesville more competitive.
Interior Secretary Ryan Zinke says US oil production could hit 14 million barrels per day by 2020 despite some structural and regulatory obstacles. "You look at the first day of the presidency, we were at 8.7 [million barrels per day] -- today we are the largest oil and gas producer on the face of the planet, rolling [out] 11.2 million barrels a day, on our way to 14," Zinke says.
The Trump administration aims to push ahead with its deregulatory agenda in 2019, which may include the revision of several oil and natural gas regulations, according to the Office of Management and Budget's newly released Unified Agenda. Among the deregulatory actions being considered by the administration are changes to Obama-era rules governing oil and gas facility security, oil and gas measuring, well control, as well as offshore air quality control, reporting and compliance.
The course is intended to familiarize the participant with lifting loads using slings and rigging hardware as well as safety concerns and is intended to give the individual the knowledge and skills required to competently act as a Qualified Rigger and effectively conduct safe lifting operation. Presented by: Thunder Oilfield Services (Thailand) Ltd., November 5-7; Australasian Training Company (Singapore), November 12-16; Maersk Training, Inc. (Houston, TX), December 17-18. To learn more and to register, visit the API-U Calendar.
API Fundamentals of Auditing and Lead Auditing
The Fundamentals of Auditing two-day course covers auditing fundamentals and auditing processes that are unique to the API program. The third day, the Lead Auditor course, offers additional information on leading an audit team. Participants of this course will learn how to conduct effective audits by applying the principles, procedures and techniques of effective audits as well as hot to manage the audit process. Presented by: Qualified Specialists, International, November 6-8; AxiomLogics, Inc., November 12-14, November 26-28; Global Management Solutions Ltd., November 14-16, December 5-7. To learn more about this course and to register, visit the API-U Calendar. To learn more about the new Auditor Certification Program, visit API Auditor Certifications.