Shell has become the first major to take proper advantage of the low oil price, taking out a company that it has long been interested in buying: BG. And the reason is a good one: not growth for its own sake but using BG’s assets to help it achieve its own goals faster. The transaction is underpinned by BG’s asset value, it said.
Posts Tagged ‘drilling’
By William Powell | April 13, 2015 12:01 AM Comments (0)
By Starr Spencer | April 6, 2015 12:01 AM Comments (0)
By Robert Perkins | March 23, 2015 12:01 AM Comments (2)
By Brian Scheid | March 20, 2015 12:01 AM Comments (2)
As oil prices continue to fall amid flat demand and near-record supply, a dramatic production slowdown is expected to hit the US sometime this summer, if not earlier.
But no matter how unfavorable market fundamentals may be to Bakken operators, North Dakota is likely to see a “big surge” in production this June, potentially besting another supply record even if prices continue to crater, according to Lynn Helms, director of the state’s Department of Mineral Resources.
By Starr Spencer | February 26, 2015 12:03 PM Comments (0)
Someone had to do it, and it might as well have been one of the biggest names in US shale.
Having whittled its 2015 capital budget down to $5 billion, 40% lower than last year, US producer EOG Resources last week made the tough call of forfeiting production growth this year, saying it would drill but not complete wells in a low oil price environment.
By Steven Kopits | February 6, 2015 12:01 AM Comments (3)
Steven Kopits is the president of Princeton Energy Advisors, and contributes guest posts to The Barrel.
In an interview with Bloomberg TV, BP CEO Bob Dudley took a bearish view on the price of oil, noting that the present feels like 1986, when oil slumped from $30 a barrel to $10 and did not recover until in 1990. “The fundamental supply and demand does remind me of 1986 a bit, where we could go into a period in this decade of lower oil prices,” Dudley noted, adding that prices may stay in a range below $60 for as long as three years. “It will be a long time before we see $100 again.”
I agree with Dudley: 1986 is the appropriate template for today’s oil market dynamics. However, the understanding of the precedent is incomplete, and the analogy, imperfect. The differences matter.
By Starr Spencer | February 4, 2015 11:30 AM Comments (1)
After emerging loudly from under the cloak of the holidays a month ago, the 2015 downturn is now in full swing as rig counts drop by the dozens each week and oil companies grimly whack away at their capital budgets.
But a week of E&P quarterly conference calls appears to have calmed investor pulses a bit by revealing the extent of activity cutbacks industry is prepared to make this year – particularly for Big Oil’s biggest players. And CEOs appeared quite willing to “go to the mattresses” to survive stubbornly low oil prices which have dropped by half since mid-2014 and stayed there for the past month.
By Brian Scheid | February 3, 2015 12:01 AM Comments (0)
Last week, the Obama administration drew the ire of environmentalists when it revealed early plans to open some of the mid and south Atlantic Ocean to oil and gas drilling.
The plan exposes the Eastern Seaboard “to the hazards of offshore drilling,” said Peter Lehner, executive director of the Natural Resources Defense Council, a sentiment largely shared by most environmentalists and several congressional Democrats.
But despite the possible inclusion of drilling off the US East Coast in the administration’s next five-year plan for offshore oil and gas leasing, the reviews from the fossil fuel industry were far more negative.
By Starr Spencer | April 17, 2014 12:01 AM Comments (2)
In the controversial 1940s book The Fountainhead, arch-villain Ellsworth Toohey, who above all seeks power and control of other people, comments — and this is a paraphrase — that the way to topple a system is to make one small negative but still-key move in just the right place, and then sit back and watch the whole edifice implode as its members scramble for self-preservation.
Although Ayn Rand, the author of that book and fierce champion of individualism, hated the popular notion that “we’re all in this together,” the fact is that in oil markets and economic systems, we are. One ominous signal — and even worse, a handful — can start a rumble that creates an earthquake.
By Rodney White | February 21, 2014 02:55 PM Comments (0)
Sometimes a well-intentioned gesture comes off as an inadvertent slight and that could be the case with Chevron’s distribution of gift certificates to people who live near a gas well that blew up February 11.
On the Sunday following the blast, representatives of Chevron North America distributed upwards of 100 gift certificates for a large pizza and a large drink to residents of Bobtown, the unincorporated community nearest to the explosion.
Chevron said in a note it wanted to give residents an update on the incident and answer questions. “We are committed to taking action to safeguard our neighbors, our employees, our contractors and the environment,” the note also said.