Posts Tagged ‘drilling’

New Frontier: Pursuing oil production in the Falkland Islands

The Falkland Islands, off the coast of Argentina, are the focus of a new production push, but sovereignty and price concerns could put a crimp in plans, as Robert Perkins explains in this week’s Oilgram News column, New Frontier.

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Tax break, time limits may cause Bakken oil “surge” this summer

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.

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If breaking up is hard to do, try not growing oil

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.

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Guest post: A lesson from the history of oil

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.

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CEOs wrestle with a gloomy 2015 in the oil patch

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.

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With US offshore oil and gas plan, what you see will likely be what you get

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.

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Wall Street sees slide ahead for deepwater rig dayrates

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.

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Chevron makes a well-intentioned faux pas in Pennsylvania

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.

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Digging deeper into figures on oil and gas industry workplace fatalities

A few days before the New Year rang in, National Public Radio came out with an interesting report on how workplace deaths have increased with the hiring spree in the oil patch to keep up with the boom in unconventional oil and gas drilling.

In fact, right in the third paragraph, we see that 138 workers were killed on the job while extracting, producing or supporting oil and gas in 2012, the most recent year that data is available, according to reports from the US Department of Labor’s Bureau of Labor Statistics.  The number was more than double that of 2009.

The 138 fatalities in the oil patch during 2012 was actually the highest number in 10 years, up from 112 in 211 and 107 in 2010, BLS figures show.

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At the Wellhead: More on the Australian coalseam gas future

Last week, The Barrel featured a piece by James Bourne on the Australian coalseam gas future. He expanded on some of those same themes in this week’s Oilgram News column, At the Wellhead.

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