WTI Crude
48.61
Brent Crude
50.78
Natural Gas
3.24

News

Strength in Oil and Gas Sector Bolsters Industrial Economy, Drives GDP Growth

The initial report on 1st-quarter Gross Domestic Product (GDP) was weak, but showed encouraging growth in the oil and gas production sector. Capital investment, which has been historically weak since the Great Recession, bounced back to a 9.4% uptick, led by expansion in oil and gas drilling and related equipment. The Federal Reserve Board earlier reported preliminary 1st-quarter industrial production involving drilling in the oil patch was up 159% over 2016 levels. This accounts for nearly 0.5% of the reported 0.7% GDP growth…

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US Industry Seeks Faster Permits, Simpler Rules

U.S. industry groups have told President Donald Trump’s administration that they want two main things from his promised regulatory overhaul: a speedier permit process and simpler environmental rules. Associations representing the drilling, refining, mining, and building industries have submitted hundreds of pages of documents to the Commerce Department and Environmental Protection Agency (EPA) in recent weeks, outlining regulations they want to see eliminated or modified. The comments, many targeting the EPA, come in response to a pair of executive orders…

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US Shale Oil, Gas Production Still Rising

U.S. oil production from shale plays is forecast to increase again, jumping 122,000 barrels per day (Mbbl/d) to 5.4 million barrels per day (MMbbl/d) in June, according to the latest drilling productivity report from the U.S. Energy Information Administration (EIA). Leading the pack is, of course, the Permian, where oil production could reach about 2.5 MMbbl/d, an increase of 71 Mbbl/d from what is expected by the end of May. Likewise, the future is likely to hold more shale gas…

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OPEC Prolonging Cut Would Achieve Mission to Clear Oil Glut

The world’s two biggest oil exporters seem to have finally figured out how to eliminate a global surplus that’s kept crude prices in check for almost three years. Saudi Arabia and Russia said in Beijing on Monday they favor prolongingthis year’s oil curbs to the first quarter of 2018. If they convince fellow producers to adopt the strategy when OPEC and its partners meet next week, it will pare near-record inventories in developed nations by 8 percent and erase the glut…

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Oil rises on expectations of extended supply curbs

Oil prices extended gains on Tuesday after top producers Saudi Arabia, Russia and Kuwait supported prolonging supply cuts until the end of March 2018 in an effort to drain a global glut. Brent crude oil was up 30 cents at $52.12 a barrel by 1215 GMT (8.15 a.m. ET). U.S. light crude was also 30 cents higher at $49.15 a barrel. Both benchmarks have risen more than $5 since hitting five-month lows 10 days ago. Saudi Arabia and Russia said…

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Why The Right Price For Oil Is Between $60 And $70

Before we get into this topic, let me remind readers that crude oil prices are determined on the global market and natural gas and natural gas liquids (NGLs) trade on regional markets. The vast majority of upstream oil & gas companies produce a mixture of these three commodities. Crude oil is one of the most actively traded commodities in the world. Crude oil prices are actually set by speculators that trade oil on the futures market. The oil price you…

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U.S. reviewing permits for Atlantic coast drilling surveys

May 10 The U.S. Department of Interior on Wednesday said it would begin reviewing permit applications from six companies seeking to conduct seismic surveys in the Atlantic Ocean, marking a sharp reversal from the previous administration’s stance on oil and gas exploration activities off the U.S. East Coast. The move comes roughly one week after Interior Secretary Ryan Zinke issued a Secretarial Order to implement President Donald Trump’s directive to review drilling bans for parts of the Atlantic, Arctic and…

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Oil prices are surging right now after a report showed falling stockpiles, greater demand

Oil prices surged as much as 4 percent after the latest report on U.S. crude stockpiles eased fears that have permeated the market in recent weeks, helping to drag prices to nearly six-month lows. U.S. West Texas Intermediate futures rocketed back above $47 a barrel and international benchmark Brent topped $50 after the Energy Information Administration reported a much larger drop in the nation's crude stockpiles and a strong rebound in gasoline demand. WTI posted its best performance since Dec.…

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U.S. Oil Production to Grow 4% in 2017, 7.5% in 2018: EIA

Shale producers will continue pumping more and more hydrocarbons according to the latest analysis from the Department of Energy. The EIA released its Short Term Energy Outlook for the month of May yesterday, outlining expectations for energy markets in the immediate future. U.S. crude oil production averaged 9.1 MMBOPD in April, 0.6 MMBOPD above the bottom of the downcycle in September 2016. The EIA forecasts that overall U.S. crude production in 2017 will average 9.3 MMBOPD, up from 8.9 MMBOPD…

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Opec may need more than its oil output extension

Opec and its allies have run out of options ahead of their meeting at the end of this month, as oil prices slide. It is almost certainly a foregone conclusion that oil ministers will extend their output deal when they meet in Vienna on May 25, with that outcome already baked into oil market expectations. But the broader question is whether members will stay committed to a policy that, for its initial six-month period at least, has failed in its…

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