Stepped-up shale investment could make US oil production less sensitive to price volatility, says BP's chief economist Spencer Dale. "Big Oil has increased its footprint and the incentives for consolidation to exploit the benefits of scale and contiguous acreage have increased," Dale said, adding: "the intuition here is large oil companies have bigger balance sheets and so are able to smooth through variations in oil prices and capital and may make production less sensitive."
Oklahoma's central and southern drilling regions, once touted as the next Permian basin, have proved more geologically inconsistent than expected, leading to unexciting returns. The SCOOP (South Central Oklahoma Oil Province) and the STACK (Sooner Trend, Anadarko, Canadian and Kingfisher) basins drew investment, but producers are narrowing operations and shifting resources elsewhere.
ExxonMobil plans to develop at least 90 wells at the Bajo del Choique-La Invernada block in Argentina's Vaca Muerta shale play. The company expects to produce up to 55,000 barrels of oil equivalent per day within five years at the 40,064-hectare onshore block, which is 93 kilometers northwest of Añelo.
US shale oil production will remain steady or increase, despite low prices and decreased demand, says deputy energy secretary Dan Brouillette, contending that the industry's biggest problem is insufficient pipeline capacity. "Our biggest challenge in the United States is not maintaining production, it's actually getting the product to market," he said.
The government of North Dakota said it will invest $200,000 in Bakken Midstream Natural Gas, a startup developing ways to sell natural gas that currently is being flared off by oil producers. Twenty percent of North Dakota's tapped natural gas is being flared because of a dearth of takeaway capacity.
The Delaware River Basin Commission has approved plans to build a $96 million tanker loading facility in New Jersey that will be used in part to export liquid natural gas produced at Pennsylvania shale wells. The commission said its review was limited to the impact of construction and dredging, rejecting environmentalists' argument that the project should be delayed until its overall impact is assessed.
Appalachia's Ohio Valley subregion has ample shale gas reserves and is a very attractive place for materials companies to invest, said Shale Crescent USA executive Greg Kozera last week. Shell Chemical is building a project in the area, and PTT Global Chemical and Daelim Industrial are considering one.
API Training Course | API Spec Q2 Fundamentals and Practitioner, July and August 2019
This course addresses the quality management systems for service supply organizations for the upstream oil and gas industries. Participants will be given insight into the drivers behind Q2’s importance and progressively give advanced knowledge of Q2 requirements and interpretations. Presented by: AxiomLogics, Inc., July 1-4, August 5-8; Bureau of Quality Surveillance, Inc., July 1-5; Career Performance Enhancement, LLC, July 8-11; Global Management Solutions Ltd., July 9-12; Aston Technical Consulting Services, LLC, July 22-25; Qualified Specialists, International, August 5-8; Mireaux Management Solutions, August 26-28. To learn more about this course and to register, visit the API-U Calendar.
EVENT | 2019 Exploration and Production Standards Conference on Oilfield Equipment and Materials, June
Join us at this year’s Exploration and Standards conference June 24 – 28. The development of consensus standards is one of API’s oldest and most successful programs. The Upstream segment covers over 300 standards. The breadth of this vital program is an important indication of the varied industry contacts that attendees can make during the sessions and networking opportunities. Please visit the API Events Page for more information.