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RE: OPEC, for some quiet moments.. - Movieguy - 06-30-2015

US oil producers using technology to outsmart Saudis - Business Insider

From multi-well padding (multiple wells in a single location) to superior drill bits, technology is helping to keep production levels high. Well completion costs and the speed of drilling have improved to levels many thought were not possible.

[/quote]

Thank you, Saudi Arabia, for motivating good ole' American ingenuity.  Well done, domestic oil & gas industry!




RE: OPEC, for some quiet moments.. - Thylacine-2 - 07-01-2015

'Movieguy' pid='60044' datel Wrote:

US oil producers using technology to outsmart Saudis - Business Insider

From multi-well padding (multiple wells in a single location) to superior drill bits, technology is helping to keep production levels high. Well completion costs and the speed of drilling have improved to levels many thought were not possible.

Thank you, Saudi Arabia, for motivating good ole' American ingenuity.  Well done, domestic oil & gas industry!

[/quote]

The concluding paragraph in the article: "To be sure, there is a significant chance that US production slows in the coming months. Thus far however the results of the recent Saudi efforts to diminish US production have been less than satisfactory."

Actually there is a virtual certainty that US production will slow in the coming months, if it hasn't already.  The lag between drilling and production accounts for production still being high.  And...the Saudi strategy has been more than satisfactory, it's been a resounding success.  High cost projects around the world, not just in US tight oil plays,  are being cut back and/or cancelled.  The shale boom in the US was a consequence of high oil prices and abundant and cheap money.  Those days are gone, leaving many shale oil companies with crushing debt loads.





RE: OPEC, for some quiet moments.. - Putncalls - 07-01-2015

I have a friend that is in the process at this very moment of drilling 10 2 milie horizontal wells on his ranch in CO. Each well takes only 3 weeks to complete. They will be profitable at 60 dollars.


RE: OPEC, for some quiet moments.. - jft310 - 07-01-2015

Puts- The Baker Hughes rig count is down 50 percent . Your friend may be drilling but he's part of a much smaller group .


RE: OPEC, for some quiet moments.. - admin - 07-01-2015

The amount of crude stored at the world’s largest oil-trading hub has hit a two-year high, according to data released on Monday, in another sign that the world has an oversupply of petroleum that won’t end soon.

Oil Stocks Hit Two-Year High in Europe Hub - WSJ

The equity market has been one of the biggest saviors for troubled oil companies, almost 25 of whom have reportedly raised capital of more than $8.3 billion in order to repay their rising debt. Big oil companies such as Exxon Mobil, BP, Total, Statoil and Chevron have raised around $31 billion in debt between January and February 2015. “Credit markets have played a big role in keeping the entire sector alive,” said Amrita Sen of London based consulting firm Energy Aspects Ltd.

The oil industry will suffer if prices stay low - Business Insider

Crude oil’s plunge is leaving drilling rigs idle from Africa to Latin America as the world’s biggest energy companies curtail spending and stall projects. Their smaller rivals are seizing the opportunity to gain ground. Sound Oil Plc, a Mediterranean producer one-500th the size of Eni SpA, will start exploring fields in Morocco and Italy toward the end of 2015 and early 2016, while Cairn Energy Plc and Savannah Petroleum Plc plan wells in West Africa.

Rig rout puts smaller drillers in front as majors scale back

New York state has officially banned hydraulic fracturing. The state, following through on a decision Democratic Governor Andrew Cuomo made in December, released its formal study of the drilling practice Monday after almost seven years of study. The report, which drew the same conclusions as a shorter version released Dec. 17, said studies on fracing’s effects on water, air and soil are inconsistent, incomplete and raise too many red flags.

New York bans fracing with release of seven-year study




RE: OPEC, for some quiet moments.. - admin - 07-02-2015

High noon for the Obama administration’s stricter rules for fracing on public lands has arrived on the Wyoming range. Four western states at the center of the shale oil boom are headed for a courtroom showdown Tuesday over who should have the last word on rules for extracting oil and natural gas from federal property within their borders.

Frontier fracing showdown pits Feds against Western boom states

Almost $20 billion in bonds issued by the 62 companies are trading at distressed levels, with yields more than 10 percentage points above U.S. Treasuries, as investors demand much higher rates to compensate for the risk that obligations won’t be repaid, data compiled by Bloomberg show.

Next threat to U.S. shale: Interest expense on $235 billion debt

Saudi Arabia, the world’s biggest oil exporter, told OPEC that it kept pumping the most crude in three decades last month amid growing signs that the 12-nation group’s quest to maintain market share is working. The kingdom produced 10.33 MMbopd in May, an increase of 25,000 bopd from April, according to data the country communicated to the Organization of Petroleum Exporting Countries. The group supplied almost 31 MMbopd collectively, the most in almost three years.

Saudi Arabia keeps pumping at three-decade high as shale buckles

The shale oil boom that turned the U.S. into the world’s largest fuel exporter and brought $3 gasoline back to America’s pumps is grinding to a halt. Crude output from the prolific tight-rock formations, such as North Dakota’s Bakken and Texas’s Eagle Ford shale will shrink 1.3% to 5.58 MMbpd this month, based on Energy Information Administration estimates. It’ll drop further in July to 5.49 MMbpd, the agency said Monday.

America’s shale oil boom grinding to halt as OPEC stands pat




RE: OPEC, for some quiet moments.. - admin - 07-03-2015

Cheniere Energy will assume up to $5.8 billion in debt to pay for the construction of a fifth production facility at its Sabine Pass export terminal, pushing the company closer to construction. The Houston-based LNG company announced Monday that it’s working with 18 financial institutions to arrange the financing, including $4.6 billion of credit and a $1.2 billion revolving credit facility. Funding has not been announced for a planned sixth production unit, called a liquefaction train.

Cheniere to take on $5.8 billion in debt to pave way for Sabine Pass construction - Fuel Fix

Woodside, as a participant in the Browse FLNG Development, advised Wednesday that an agreement has been reached to enter the front-end engineering and design (FEED) phase for the proposed development. The FEED phase involves undertaking the activities required to finalize the costs and technical definition for the proposed development to enable a final investment decision (FID). It includes determining a range of details related to the commercialization, timing and sequencing of FLNG deployment.

FEED phase entered for Browse FLNG development, Woodside says

Iraqi crude production climbed to a record this month, helping send OPEC output to the highest level since August 2012. Output by the Organization of Petroleum Exporting Countries climbed 744,000 bbl to 32.134 MMbopd this month, according to a Bloomberg survey of oil companies, producers and analysts. Last month’s total was revised 189,000 bbl lower to 31.39 MMbopd, because of changes to the Saudi, Iraqi, Algerian and Nigerian estimates.

OPEC crude production surges as Iraq pumps at record pace

Oil was steady after the biggest decline since April as an unexpected gain in U.S. crude stockpiles signaled a supply glut may persist. Futures were little changed in New York after falling 4.2% Wednesday. Crude inventories expanded by 2.39 MMbbl last week, a government report showed, compared with a 2.5 MMbbl drop forecast in a Bloomberg survey. U.S. Secretary of State John Kerry said envoys in Vienna were working “very, very hard” to reach an agreement on Iran’s nuclear program, which could allow the nation to boost crude exports.

Oil steady after biggest drop since April as U.S. supplies rise




RE: OPEC, for some quiet moments.. - admin - 07-04-2015

Papua New Guinea -- InterOil Corporation and the PRL 15 joint venture participants have unanimously endorsed recommendations from Total SA for key project infrastructure sites for development of Elk-Antelope gas field in Papua New Guinea. The central processing facility for the Elk-Antelope gas field, on which the project is based, will be near the Purari River in the Gulf Province, about 360 km northwest of Port Moresby, and will be connected to the LNG facility by onshore and offshore gas and condensate pipelines.

Elk-Antelope joint venture selects LNG project sites

China is wary of expanding energy investments in Russia because closer ties with the Kremlin could harm its relations with the U.S., according to a former researcher at China’s biggest offshore explorer. The government in Beijing isn’t prepared to jeopardize economic links with the U.S., said Chen Wei Dong, who resigned as chief researcher for China National Offshore Oil Corp.’s Energy Economics Institute in May. The U.S. is viewed as a “global” partner while Russian ties are regional, he said.

China wary of closer Russia energy ties, ex-Cnooc economist says

A second major factor that suddenly pushed down oil prices is the latest EIA figures released on July 1, which showed a very surprising uptick in the level of crude oil storage. Oil inventories climbed by 2.4 million barrels, the first increase in two months. Since mid-April, the U.S. has begun drawing down its record high inventory levels, with refineries working their way through the glut and producers leveling off their production.

Bearish News For Oil Growing By The Day | OilPrice.com

New Dominion LLC can be sued by an Oklahoma woman injured when her fireplace fell on her during an earthquake that she blames on disposal wells tied to fracing. Tuesday’s ruling by the Oklahoma Supreme Court reversed a lower-court decision throwing out the case and saying it was a matter for state energy regulators. The lawsuit is the first of its kind headed toward a jury trial, according to a lawyer for the woman.

Oklahoma woman blaming fracing for quake can sue oil firms




RE: OPEC, for some quiet moments.. - admin - 07-06-2015

A recent report projected that the cost of manufacturing in the U.S. will fall below costs in China within the next three years, in large part due to the rise of fracking. Fortune, citing an analysis by Boston Consulting Group, reported that the average cost to produce goods is currently only 5 percent higher in the U.S. than in China, and that the cost is expected to be 2 to 3 percent lower by 2018.

Report: Fracking To Help U.S. Manufacturing Costs To Fall Below China

Iran's oil minister Bijan Zanganeh will soon present a long-awaited template for new international oil contracts to the government, as foreign companies watch for a nuclear deal that could allow them into a major untapped market.

Iran's oil ministry to submit new international contract draft 'soon' -Shana

Given the amount of air time the crude oil storage situation received back in March and April, this might be a good time to revisit that situation. If you recall, there was a great amount of hand-wringing regarding the crude oil storage picture in the U.S. Inventories were high and they were continuing to rise. There were a great many articles like this one, which assured us the situation was dire: US running out of room to store oil; price collapse next?

Remember When We Were Running Out of Crude Oil Storage?

The LNG market is undergoing a boom in new production capacity, the like of which has not been seen since the great Qatari expansion of the 2000s. By 2020, Australia is expected to have overtaken Qatar as the world’s largest LNG producer. Hot on its heels is the US, which will bring shale gas to the shores of LNG consumers worldwide. This expansion is based on projects already under construction, it is not reliant on the nebulous universe of LNG projects at the proposal stage.

Viewing global LNG from the House at Pooh Corner, where Eeyore lives « The Barrel Blog




RE: OPEC, for some quiet moments.. - kerekesc - 07-06-2015

I don't know if anyone came accross the news report that Putin and the Saudi's are discussing cooperation in the oil shere, and even the possiblility of Russia joining OPEC.  However, the really interesting piece of news in the article was that Russia has agreed to build 16 nuclear generating stations for the Saudi's.  The question that popped into my mind immediately was, why do they need nuclear generating stations when they have so much oil?