Posts Tagged ‘upstream’

Sanctions failed to take a bite out of Russia’s oil patch: Fuel for Thought

International sanctions against Russia introduced in 2014 turned out not to be the bogeyman they first seemed to be, and could in fact have played a key role in helping the Russian oil sector to not only handle the sharp price drop over the last year and a half, but make the industry more efficient in the long run.

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Pemex reform efforts in Mexico hobbled by oil downturn: Fuel for Thought

Falling crude oil production, falling refined product output and falling income have led many to believe that the sky is falling on Mexico’s state-owned oil company Pemex.

The perilous situation for Mexico’s energy industry — and Pemex is Mexico’s energy industry — has not been lost on officials who are trying to reform the company and, by extension, the nation’s energy landscape.

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Despite holding steady, North Dakota braces for oil supply crash

When North Dakota oil production broke above 1 million b/d for the first time in April 2014, many expected that the 2 million b/d threshold would be breached in relatively short order.

With WTI spot prices averaging over $100/b in the months that followed, some even speculated that 2 million b/d may be too modest of a goal for a state in the throes of a shale oil renaissance.

But prices, and those expectations, have come crashing down.

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Capex cuts: the road to rebalance or rebound? — Fuel for Thought

The supply response of US shale output to lower oil prices has garnered more than its fair share of news headlines over the last year.

Where the collapse of US drilling rates have been straightforward to track, the longer term consequences of more conventional, bigger-ticket spending cutbacks has been tougher to gauge. Outside shale, the much longer lead times and investment cycles of projects means the fallout of upstream cuts now — while no less real — is less tangible.

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Alaska’s rocks keep drawing explorers searching for oil, gas: Fuel for Thought

These are bleak times across much of the nation’s “oil patch.” Layoffs are spreading and rigs are being laid up. One state – Alaska – is defying the trend, at least for now. Industry employment in Alaska remains near-record numbers, according to state data. Producers are pressuring contractors and suppliers to slash rates, but explorers keep lining up in search of black gold.

What keeps the industry interested, and busy, is that really the rocks are great. State geologists say the North Slope has one of the largest oil-generating systems of the world. “The rocks are fundamental,” said Ken Boyd, a former state oil and gas director. “If you don’t have good rocks you don’t have anything.”

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Indonesia energy reforms look like a lost cause: Fuel for Thought

Indonesia’s continuing attempts to sort out fuel subsidies and how to best reform various parts of the energy industry is now having an effect on upstream business, Mriganka Jaipuriyar explains in this week’s Oilgram News column, Fuel for Thought.

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Russia’s oil industry woes also from within: Petrodollars

Russia’s oil and natural gas industry is feeling the impact of low prices and financial and technological sanctions, but disagreements within the country’s own energy sector are also proving a hurdle to development, as Rosemary Griffin details in this week’s Oilgram News column, Petrodollars.

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Upstream oil execs agree: Low, long and living within means

The recent Barclays CEO Energy-Power Conference came at a crucial time in the current lower-for-longer oil price environment and clarified upstream CEOs’ plans to weather what could be 2015 all over again for a couple of more years.

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Q2 oil results show strength of US ‘super-shale’ for the price of a slice

If the round of second-quarter upstream conference calls showed anything, it was that operators have been humdingers in recent months: incredibly competitive, ruggedly hard-working and totally determined to match their operating costs to slipping oil prices, with a bit left over for profit.

And they have succeeded beyond their most extravagant forecasts. The cost of producing the once-perceived “high-priced” unconventional oil patch has now fallen, in some cases, to per-barrel breakeven prices pretty much on par with an extra-large delivered pizza with all the works, including tip.

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Dubai’s national oil company considers expanding upstream presence: Petrodollars

Many have been waiting for mergers and acquisitions— particularly in E&P sectors — to pick up in light of low oil prices, and one case of a downstream-focused company considering acquiring an oil producer caught the attention of Tamsin Carlisle in this week’s Oilgram News column, Petrodollars.

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