Archive for the ‘Uncategorized’ Category

The Oil Big Five: Your thoughts about what’s important in June

The second installation of The Oil Big Five hit a snag when we realized that comments weren’t coming through on our blog platform, so this follow-up is a week later than we wanted.

But regardless of timing, we wanted to feature the comments from our readers, both here on the blog as well as on social media. We know what our oil experts and editors think are the most important trends worldwide, but what about you? Do you agree with what others have said?

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When is energy pro-union? When gasoline buyers form a co-op

I was slowing down over at the Pricelock energy listings in search of a job posting for a flatbed driver — maybe a Ford, maybe not, who knows? — when something much more interesting caught my eye.

Four cities in New England were looking to buy 1.214 million gallons of 87- and 89-octane gasoline over the next three years.

That’s a serious chunk of change, and enough gasoline to fill 60,000 Crown Vic police cruisers.

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EIA’s November report: US net imports drop again

Pulling some numbers out of the rabbit hat that is the monthly EIA report:

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US oil drilling motor races past gas, and is still revving up

The oil rig count — that is, the number of rigs that are expressly drilling for oil rather than natural gas — finally did two important, if expected, things late last week.

Not only did it surpass the natural gas rig count for the first time since 1993, but the number of rigs drilling for oil exceeded 900 for the first time ever since the Baker Hughes rig count began keeping such statistics in mid-1987.

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China’s demand up year-on-year, but flat month-on-month

Comparing indications of petroleum demand on a month-to-month basis is always fraught with potential pitfalls. Bad weather could have been a feature of one of the months; there could be a holiday in there; the list is endless. So year-on-year comparisons are considered more significant.

Except this month, when looking at Chinese demand, it can’t help but be noticed that Chinese demand in March was a little less than February. An end to the relentless increases in demand has been predicted by many; the data is never there to back it up. So those bearish soothsayers looking for a little redemption may find this month’s Platts estimate to be interesting. You can see it here.

US reserve rates soar as costs fall on new technologies

New technologies are having a dramatic impact on a couple of key measures for US E&P efficiency according to a recent report by Oppenheimer’s Fadel Gheit, who finds reserve replacement rates rising as finding costs are falling.

His study analyzes the reserve profiles for a group of 14 key E&Ps through 2010, noting that their combined reserve replacement rate averaged 413% last year, up from 311% in 2009, while their finding and development costs fell 4% to a natural gas-equivalent average of $2.01/Mcf from a level of $2.10 in 2009.

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Cairn-Vedanta stuck in Indian bureaucratic impasse

No one in India seems to want to be the one to make a decision on the $9 billion Cairn-Vedanta deal.

Eight months after Cairn Energy announced its intention to sell its stake in Cairn India to Vedanta Resources, the fate of the deal still hangs in balance.

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How a company is turning to liquids in a weak natural gas price environment

With the excitement surrounding shale gas having spurred a bit of a problem — too much of it — every company in the world says it is turning its focus to the liquids coming out of the ground.

In this week’s Platts Oilgram News column, “PetroDollars,” Gary Taylor explains how one company that’s been out in the gas fields for a long, long time, has been handling the shift, and what analysts think about it.

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Bakken Shale oozes oil, but the big challenge is taking it away

The US’ Bakken Shale oil field, which spans Montana and North Dakota, has become so prolific that at least one big independent operator there estimates industry’s output potential there at a whopping 1.2 million b/d by year-end 2016.

That’s a heck of a lot of oil for a play that was barely breathing six or seven years ago. And that figure is even higher than the 700,000 b/d or so North Dakota officials were citing as a  peak awhile back. 

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Running updates: Nine oil companies, so far, cleared to drill in deepwater Gulf of Mexico

Since cranking up permitting after the Deepwater Horizon disaster and subsequent drilling moratorium, US regulators are averaging just under two approvals a week. The Bureau of Ocean Energy Management, Regulation and Enforcement has signed off on nine drilling permits and one exploration plan since it gave the first one to Noble Energy on February 28.

How quickly will these companies start piercing the seafloor again? ExxonMobil said it’s a matter of weeks before contractor Maersk Drilling can have a rig ready to go at its Keathley Canyon Block lease.

“We have a newly built, state-of-the-art drilling rig standing by and we are prepared to spud the well within a few weeks,” ExxonMobil spokeswoman Margaret Ross said March 24.

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