WTI Crude
50.43
Brent Crude
56.58
Natural Gas
2.96

Category: April 2017

Old Oil Is New Again

From California’s Central Valley to the Native American lands of Oklahoma, more small- and mid-sized oil firms—many backed by private equity—are forgoing expensive shale drilling projects and opting for old-school wells instead. As crude prices languish under $50 a barrel, and with increasing costs for land, labor and infrastructure, some shale fracking operations are starting to look expensive. That has some investors turning to conventional drilling to make a profit. Tapping shale involves fracking, drilling horizontal wells that extend for…

READ MORE

Oil prices edge up on signs of gradually tightening market

Oil prices rose on Tuesday, lifted by indications that supply is gradually tightening, especially in the United States. Brent crude futures, the international benchmark for oil prices,were at $51.83 per barrel at 0340 GMT, up 17 cents, or 0.3 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $47.53 a barrel, up 16 cents, or 0.3 percent. "U.S. crude oil stocks have been falling consistently in recent weeks. If the downtrend in oil inventories is…

READ MORE

Golden Pass LNG cleared to export

The Golden Pass LNG terminal on the Texas Gulf Coast was cleared by the Department of Energy Tuesday to begin exporting up to 2.21 billion cubic feet of gas per day. Located outside Sabine Pass, the Golden Pass terminal was built to import LNG from abroad in 2009. But following the boom in domestic gas production through hydraulic fracturing and horizontal drilling, Golden Pass, a joint venture between Qatar Petroleum, ExxonMobil and ConocoPhillips, shifted gears. The approval adds to a growing list…

READ MORE

Kinder: Permian gas line interest significant

Houston, 25 April (Argus) — Bids for capacity on Kinder Morgan's proposed Gulf Coast Express pipeline significantly exceeded the planned capacity 1.7 Bcf/d (48mn m³/d), potentially leading to a larger project that would connect west Texas natural gas supplies to the Gulf coast. The US infrastructure company is still evaluating the bids received during a non-binding open season that closed late last week. Based on the level of interest, Kinder Morgan could increase the size of the pipeline, the company…

READ MORE

$73 billion in mergers and acquisitions last quarter

The first quarter of 2017 set a record with $73 billion in announced U.S. oil and gas mergers and acquisitions, nearly triple the same period last year, according to a recent report from the London consulting firm PricewaterhouseCoopers. More companies also prepared last quarter to go public, signaling a potential increase in initial public offerings this quarter. The year started “at a blistering pace,” said Doug Meier, the firm’s U.S. oil and gas deals leader. Companies announced deals worth $49…

READ MORE

Oilfield equipment rentals on the rise

CUERO - Business started to pick up for Polly and Kirk Laging, owners of Certified Oilfield Rentals Inc., in November. The Cuero-based business rents surface oil field equipment all over Texas including on-site offices and living quarters, water and septic systems, light plants, generators, cooling trailers, trash trailers and more. This time last year, about 30 percent of their rental equipment was on drilling sites, and now close to 70 percent of equipment is rented. "We're on a steady increase…

READ MORE

Oil dips on doubts over OPEC’s ability to reduce inventories

Oil eased on Tuesday, paring earlier gains, as doubts about OPEC's ability to reduce global crude inventories put the price on track for its six fall in seven days. Brent crude LCOc1 was down 3 cents at $51.57 a barrel by 1411 GMT, down from a session high at $51.92, while U.S. crude futures CLc1 were down 13 cents at $49.10 a barrel. Brent has fallen by almost 10 percent since late 2016, despite efforts led by the Organization of…

READ MORE

Oil service costs could rise 15 percent this year, Wood Mac says

As crude prices stabilize and drilling rigs dig into shale plays again, oil field service costs are beginning to rise back up. That could squeeze drillers’ margins later this year. Energy research firm Wood Mackenzie believes oil field service costs could jump 15 percent this year overall, with prices for some equipment and services possibly rising as high as 40 percent, it said in a recent report. Though oil field service companies aren’t likely to charge the same prices they…

READ MORE

Oil Prices Mixed in Choppy Trade, Rising US Production Weighs

Oil prices ended mixed on Thursday after a seesaw trading session, as investors weighed rising U.S. production against geopolitical uncertainties and comments from leading Gulf oil producers that an extension to OPEC-led supply cuts was likely. The benchmark U.S. crude contract, West Texas Intermediate futures, settled down 17 cents for a fourth straight day of losses, to $50.27 a barrel. Brent futures posted modest gains, however, ending up 6 cents to $52.99 a barrel. OPEC members Saudi Arabia and Kuwait…

READ MORE

Dakota Access Pipeline Already Changing Oil Industry

Philadelphia Energy Solutions Inc, the largest refiner on the U.S. East Coast, will not be taking any rail deliveries of North Dakota's Bakken crude oil in June, a source familiar with delivery schedules said on Tuesday - a sign that the impending start of the Dakota Access Pipeline is upending trade flows. At its peak, PES would have routinely taken about 3 miles' worth of trains filled with Bakken oil each day. But after the $3.8 billion Dakota Access Pipeline…

READ MORE