US benchmark Henry Hub natural gas spot prices may average $2.89 per million British thermal units in 2019 and $2.92/MMBtu in 2020, down from $3.15/MMBtu in 2018, the Energy Information Administration projects. The Appalachian Basin, Permian Basin and Haynesville Shale will continue to fuel record dry gas production, the EIA added, with expected output levels of 90.2 billion cubic feet per day in 2019 and 92.2 bcfd in 2020, up from 83.3 bcfd in 2018.
Limited supply coupled with strong demand from refiners including Marathon Petroleum and Valero Energy have pushed prices for US Gulf Coast heavy sour crudes such as Heavy Louisiana Sweet to their highest levels in three months, traders say. "Saudi imports are down, pushing up HLS and Mars relative to lighter crude because Gulf Coast refiners need heavier barrels," said Sandy Fielden, Morningstar's oil and products research director.
Kinder Morgan is "actively" considering an expansion of the 84,000-barrel-a-day, 500-plus-miles-long Double H pipeline from the Bakken Shale to Guernsey, Wyo., to take advantage of rising regional oil production, CEO Steven Kean said. Bakken Shale output surpassed 1.3 million barrels per day in September and could reach 1.4 million bpd in April.
Sustained drilling activity in the Permian Basin, coupled with plans for additional pipeline capacity, could unleash a new torrent of crude that undermines OPEC's latest effort to raise oil prices with production cuts. The Permian is on track to produce 3.8 million barrels per day this month, more than OPEC's third-largest producer, but limited US export infrastructure could temporarily allow OPEC to protect its market share.
Texas' Eagle Ford Shale saw robust activity in 2018, but momentum is expected to slow this year given the current price environment, said Federal Reserve Bank of Dallas economist Keith Phillips, who expects drilling to drop off after the first quarter of 2019. However, technological advancements should allow basin production to hold steady or increase, said Chris Ashcraft, the South Texas Energy and Economic Round Table's interim president.
Artificial intelligence has become an integral part of Royal Dutch Shell's business strategy, helping it streamline operations, improve safety and efficiency, and transition to a greener future, writes Bernard Marr. Shell is implementing AI tech such as reinforcement learning at each step of the oil and gas supply chain, seeking reduced gas extraction costs, better response to shifting power demand and fewer service station hazards.
Several House Democrats, including Natural Resources Committee Chairman Raul Grijalva, D-Ariz., urged the Interior Department to drop plans to bring back dozens of furloughed employees to work on offshore oil and natural gas drilling efforts. The Democrats called the move "outrageous" and "farcical," in addition to questioning its legality.
Town trustees in Superior, Colo., voted unanimously on Monday to place a six-month moratorium on oil and natural gas drilling. The move comes as they consider a regulatory framework to govern drilling in the area.
This course addresses the quality management systems for service supply organizations for the upstream petroleum and natural gas industries. Participants will be given insight into the drivers behind Q2's importance and its value in the Oil & Natural Gas Industry. Using practical examples and hands-on application, this course is designed to progressively give you introductory to advanced knowledge of Q2 requirements and interpretations. Presented by: Global Management Solutions Ltd., Feb. 12-15; Career Performance Enhancement, LLC, Feb. 18-21; Mireaux Management Solutions, March 4-7; Aston Technical Consulting Services, LLC, March 18-21. To learn more about this course and to register, visit the API-U Calendar.