US shale companies are contending with a smaller and more conservative investor community that places greater emphasis on discipline, predictability and sustainability rather than growth. So far, shale firms appear determined to stick to their capital discipline and environmental commitments, but as oil prices continue to rise, the temptation to resume growth may be too strong to resist.
ExxonMobil and Chevron are not rushing to bring their drilling programs in the Permian Basin back to full strength as the oil market recovery remains fragile, and both majors plan to keep spending and drilling in check this year. The two companies accounted for less than 5% of Permian drilling activity this month, compared with a 28% share last spring.
Locus Bio-Energy Solutions and Creedence Energy Services have launched a pilot project to test if combining a biosurfactant with water and injecting the mixture into oil wells can stimulate oil production in North Dakota's Bakken and Three Forks formations. The biosurfactant, which has the consistency of maple syrup, has already undergone testing in Texas, where it was able to increase the output of a single well by at least 45%, according to Locus CEO Jon Rogers.
The US should have fewer than 5,000 drilled-but-uncompleted wells by the final quarter of 2021, representing a decline of roughly 2,000 from the second quarter of 2020, as higher oil prices incentivize drillers to step up activity, according to industry data provider Lium.
Devon Energy expects its first-quarter oil and natural gas production to be 8% lower than it had originally indicated due to the disruptions caused by February's deep freeze in the US. The company said output is now back to pre-winter storm levels and estimated full year production of 529,000 to 559,000 barrels of oil equivalent per day.
The American Petroleum Institute said it will support a federal price on carbon dioxide emissions as long as the policy is "market-based, transparent and economy-wide" and will serve as a replacement for existing regulations on greenhouse gases. "Confronting the challenge of climate change and building a lower-carbon future will require a combination of government policies, industry initiatives and continuous innovation," API President and CEO Mike Sommers said in a statement.
New Mexico's Oil Conservation Commission last week adopted more stringent rules to curb natural gas emissions from oil and gas operations, including a requirement to capture at least 98% of gas produced by the end of 2026 and a ban on routine venting and flaring. "Oil and gas operations make up the biggest portion of greenhouse gas emissions in New Mexico and the rules established today will lead to reductions across the board beginning in 2022," said Sarah Cottrell Propst, head of the state Energy, Minerals and Natural Resources Department.
Oil industry representatives, indigenous groups, environmentalists and labor organizations took turns last week to offer their input on the Biden administration's pause on oil and natural gas leasing on federal lands at a virtual public forum that marked the launch of the Interior Department's formal review of the federal drilling program. The oil industry is ready to use technology to shrink its environmental footprint, said American Petroleum Institute Senior Vice President of Policy, Economics and Regulatory Affairs Frank Macchiarola, adding, "We recognize as an industry we can do more to address the risks of climate change."
API Energy Excellence is a new initiative to accelerate environmental and safety progress throughout the natural gas and oil industry. This program builds on API's century-long track record of setting world-class standards by unifying the industry under a roadmap that drives performance to safeguard employees, communities and the environment. The initiative establishes 13 core elements, ranging from corporate leadership and culture to proactively mitigating operational risks. Read more.
Course Offering - Virtual Dates Available | API Q1 & API 6D Workshop
This two-day workshop will provide an overview of the requirements, timeline and the potential costs associated with obtaining an API Q1 certification and API 6D monogram license. This workshop is suitable for management and others responsible for guiding their company through the API Q1 certification and API 6D monogram license process. To learn more about this course and to register, visit the API-U Calendar.
Presented by: Aston Technical Consulting Services, May 24-25.
Event | 2021 Pipeline, Control Room and Cybernetics Conference, Apr. 20-May 20, Virtual
This year's conference provides for continuing education via a virtual format. Conferences sessions will be held on Tuesdays and Thursdays between April 20 through May 20. Tracks and topics identified include: Asset Integrity, Control Room Automation, "The New Normal," Human Factors, Stakeholder Engagement, Cybernetics Emerging Technologies, COVID-19, and a myriad of other topics. Please visit the website for updates on program details.