Industry Guides & How-To Resources with specific types of property or business. Check our valuable guides on this page today at Ranger Land & Minerals.

Oil Prices Rise

Oil Prices Rise As China’s Crude Imports Jump

Oil prices rise early on Wednesday as Chinese data showed crude imports. It is the world’s top oil importer jumped in May, recovering from a weak April.

As of 8:13 a.m. EDT on Wednesday, ahead of the EIA weekly inventory report, WTI Crude prices were up by 0.99% at $72.45. The international benchmark, Brent Crude, traded at $76.98, up by 0.94% on the day.

Following a slump on Tuesday, oil prices recovered some of the losses early on Wednesday. This is as China’s data showed crude oil imports jumped in May by 12.2% year-on-year. Then by 17.4% compared to April. China imported a total of 12.11 million barrels per day (BOP) of crude in May. This is the data from the General Administration of Customs showed. This is as refiners returned from maintenance and moved to stockpile crude.

The building of crude inventories has supported crude oil imports and demand despite the mixed macroeconomic data coming out of China in recent weeks.

“Demand slowdown from China has been a major concern for the crude oil market recently, and a recovery in oil imports is likely to provide some comfort to the oil market,” ING strategists Warren Patterson and Ewa Manthey said on Wednesday.

“Higher refinery utilization has also increased refined product supplies in the Chinese market, with China reverting to being a net exporter of refined products last month.”

Oil prices recovered early on Wednesday, helped by the higher Chinese crude imports and the market shifting focus from macroeconomic concerns to a looming supply deficit in the second half of the year.

On Tuesday, concerns about the economy erased all the Saudi cut-induced gains from Monday. The 1 million bpd Saudi cut has failed to move oil prices in any meaningful way so far. In addition, a bearish industry report on inventories from the American Petroleum Institute (API) also weighed on prices on Tuesday. Although the API reported a crude inventory draw, it also found that gasoline and distillate inventories increased.

Click here to read the full article 

Source: Oil Price

If you have further questions about the topic related to oil prices rise, feel free to contact us here.

Column: US Oil and Gas Output Still Rising in Response to High Prices Last Year

US oil and gas output continued to rise strongly in March – the delayed impact of very high prices that prevailed until the third quarter of 2022.

Oil output increased by 171,000 barrels per day (b/d) in March compared with February, according to the U.S. Energy Information Administration (“Petroleum supply monthly”, EIA, May 31).

The gains were led by the Lower 48 states (+137,000 b/d) and Gulf of Mexico (+45,000 b/d), which more than offset lower production from Alaska (-11,000 b/d).

Output rose by almost 10% in the first three months of 2023, compared with the same period a year earlier, and was the second-highest for the time of year after 2020.

On the gas side, dry production hit record 3,171 billion cubic feet in March and was more than 7% higher than in the same month a year earlier (“Natural gas monthly”, EIA, May 31).

Gas output climbed to a record 9,180 billion cubic feet in the first quarter and was also 7% higher than a year before.

Shale production is often characterised as “short cycle” because wells have a relatively rapid decline rate and new ones must be drilled constantly to replace the dwindling output from older ones.

Click here to read the full article

Source: Reuters

If you have further questions about the topic related to US oil and gas output, feel free to contact us here.

federal regulations code

Texas Republicans want to shield oil and gas from federal climate regulations. Their bill would have little impact, experts say.

Texas could soon have a new law based on the federal regulations code on climate. It aims to make the state a sort of safe haven for the oil and gas industry. It is by shielding it from federal climate and environmental regulation. But experts say the measure would do little to change environmental enforcement in Texas. It would be more symbolic than anything.

Texas Republicans in both chambers have supported House Bill 33. It was authored by state Rep. Brooks Landgraf, R-Odessa. Moreover, it is as a way to ward off federal climate rules under President Joe Biden. They pledged that the U.S. would cut its greenhouse gas emissions in half by 2030. This is just among other goals to slow climate change. The president’s climate agenda has been viewed by many Texas Republicans as disastrous. Mainly for the nation’s biggest oil and gas state.

HB 33

HB 33, which was approved by the House before being altered by a Senate committee. It seeks to shelter the industry from what Republicans have called “federal overreach”. This will be done by barring state agencies from enforcing federal regulations on oil and gas operations. This is if those regulations do not exist under Texas law. Texas lawmakers used a similar approach in 2021. It is when they passed a law to make Texas a “Second Amendment sanctuary state.”

The language is similar to a bill proposed in Louisiana two years ago that would have made it a “fossil fuel sanctuary state.”

When the Environmental Protection Agency creates a new rule, states can decide whether they’ll enforce it or leave that to the EPA. Typically, Texas agencies have opted to enforce federal rules themselves — for example, the EPA delegates its authority to enforce many rules under the Clean Air Act to Texas. The State Railroad Commission, which regulates the oil industry in Texas, is currently seeking authority from the EPA to regulate carbon dioxide wells for geological storage, known as carbon sequestration.

Click here to read the full article

Source: The Texas Tribune

If you have further questions about the topic related to oil and gas federal regulations code, feel free to contact us here.

US Oil and Gas Auction Yields Nearly $80 Million for Federal Coffers

The U.S. on Thursday held its first sale of oil and gas drilling rights on federal lands. This was since the passage of President Joe Biden’s landmark climate change law. It is attracting more than $78 million in high bids for leases in New Mexico and Kansas. Let’s talk more about this US Oil and Gas Auction.

The federal auction was just the second to be held in New Mexico. It is the nation’s second-largest oil-producing state since Biden became president in 2021.

Promontory Exploration LP of Midland, Texas, and Devon Energy Corp (DVN.N) of Oklahoma City were the auction’s top spenders, each picking up leases in New Mexico.

Biden’s Interior Department had attempted to suspend federal oil and gas leasing to study its environmental and climate impacts, but the Inflation Reduction Act that passed last year requires some oil and gas auctions if federal rights of way are offered for renewable energy projects.

The 19 offered parcels on 3,300 acres (1,335.5 hectares) in New Mexico garnered 99.9% of the high bid total of $78.81 million, according to sale information published by the U.S. Bureau of Land Management.

The highest price paid for a parcel was $16.2 million by Devon for 280 acres in the state’s Eddy County. It was also the auction’s highest price paid per acre at $57,901. It was Devon’s only parcel purchased in the sale.

Click here to read the full article

Source: Reuters

If you have further questions about the topic of US Oil and Gas Auction, feel free to contact us here.

Oil and Gas Employment in Texas Rose in April

The Texas Independent Producers and Royalty Owners Association said the state saw a gain in upstream oil and gas employment. This was in April and that more jobs were available with Houston offering the most opportunities. Let’s talk more about this.

The association’s analysis of data from the U.S. Bureau of Labor Statistics showed that direct Texas upstream employment last month totaled 199,400. It was an increase of 700 jobs from March and 17,600 more than a year earlier. The 12-month period ended in April saw an increase of 1,700 jobs in oil and natural gas extraction and 15,900 jobs in the services sector.

The employment data showed that there were more jobs available in the sector, the association said in a statement. There were 15,127 active job postings for the Texas oil and natural gas industry in April. The leading three cities by total unique oil and natural gas job postings were Houston (5,228), Midland (1,391), and Odessa (686).

World Fuel Services and producer Neste signed an agreement for sustainable aviation fuel, extending an existing relationship, the companies said in a statement. Neste’s U.S. operations are headquartered in Houston.

Click here to read the full article

Source: Houston Chronicle

If you have further questions about the topic related to oil and gas employment, feel free to contact us here.

Crude Oil Prices Likely to Remain Elevated. Here’s Why

Crude oil prices have been fluctuating within a band. This was since the last couple of months driven by a bunch of positive and negative factors coming into play. But, investors may brace for further volatility in global oil prices due to various factors that are impacting the market.

Analysts believe that crude oil prices are likely to stay elevated in the short term amid supply concerns. It is due to a steep fall in US inventories and as production cuts by the OPEC countries begin to be felt.

US crude oil inventories shrank at their fastest pace in nearly six months over the past week. The data is from the American Petroleum Institute (API) pointed out.

The North American oil supply has already been squeezed by Canadian wildfire. Now, there are expectations of a surge in road trips in the US beginning with next Monday’s Memorial Day holiday. Both the contracts of crude oil have been rising in the run-up to the peak summer demand for travel.

“The sharp fall in US crude oil inventories, OPEC production cuts, increasing fuel consumption in the US, and Saudi Arabian energy minister’s warning against shorting oil, are all factors that are supporting the crude oil prices,” said Ajay Kedia, Director, Kedia Advisory.

The Organization of Petroleum Exporting Countries (OPEC) and its allies including Russia are expected to consider further output cuts at a meeting on June 4.

Click here to read the full article

Source: mint

If you have further questions about the topic, feel free to contact us here.

Bank Of America Sees Oil Prices Heading Toward $90 This Year

Oil prices will return to above $80 per barrel in the second half of this year. This could continue rising toward $90 due to a deepening supply deficit at Francisco Blanch. This is what the head of commodities research at Bank of America has been telling Bloomberg Television on Friday.

This quarter will be a little weaker, with oil prices averaging in the mid-$70s, Blanch said.

“We’ll get back up over $80 in the second half of the year toward $90. The deficit is going to get deeper over the course of the next six to nine months”. This is what the BofA’s head of commodities research was mentioning.

The supply deficit becomes wide due to the OPEC+ cuts and the lack of response from U.S. shale. This is as seen in previous cycles as Blanch was noting.

“Demand will eventually turn around and get a little better in the developed markets. So those three things start to push inventories lower again into the year-end and into 2024, and that’s what gets you higher in terms of prices,” he added.

Analysts in the latest monthly Reuters survey also see prices rising toward $90 per barrel by the end of this year, driven by Chinese demand and a tightening market following OPEC+’s latest production cuts.

So far this year, Brent prices have averaged around $82 per barrel.

Earlier this week, the International Energy Agency (IEA) said that the decline in oil prices over the past few weeks contrasts with an expected tightening of the market later this year when demand is set to exceed supply by nearly 2 million barrels per day (bpd).

Since the middle of April, oil prices have lost all the gains from OPEC+’s latest announcement of new production cuts.

Click here to read the full article

Source: Oil Price

If you have further questions about the topic of how the Bank of America impacts oil prices, feel free to contact us here.

United States Crude Oil Inventories

U.S. Crude Oil Inventories Increase by 5.0 Million Barrels

United States commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) increased by 5.0 million barrels from the previous week.  At 467.6 million barrels, U.S. crude oil inventories are slightly below the five-year average for this time of year, according to the EIA crude oil and petroleum weekly storage data, reporting inventories as of May 12, 2023.

U.S. crude oil refinery inputs averaged 16.0 million barrels per day during the week ending May 12, 2023, which was 245 thousand barrels per day more than the previous week’s average. Refineries operated at 92.0% of their operable capacity last week.

  • Gasoline production decreased last week, averaging 9.5 million barrels per day.
  • Distillate fuel production increased last week, averaging 4.9 million barrels per day.

Imports related to United States Crude Oil

U.S. crude oil imports averaged 6.9 million barrels per day last week, increased by 1,306,000 barrels per day from the previous week. Over the past four weeks, crude oil imports averaged about 6.3 million barrels per day, 0.3% more than the same four-week period last year.

Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 844,000 barrels per day, and distillate fuel imports averaged 128,000 barrels per day.

Click here to read the full article

Source: Oil & Gas 360

If you have further questions about the topic related to United States crude oil inventories, feel free to contact us here.

Global Investment

Global Investment In Oil And Gas Soars

Are you ready to talk more about how the global investment in oil and gas soars? Read further below.

1. Canada Wildfires Curb Gas Output

– Canada’s constant state of emergency triggered by rampant wildfires across the province of Alberta. It is taking a heavy toll on gas production in the country. It is now shedding some 15% from production levels in April.

– Seven oil and gas producers announced production curtailments totaling 319,000 barrels of oil equivalent per day. This is considering the shut-ins of gas processing plants.

– The decline in natural gas production is pushing Canadian gas prices higher. This is in both Alberta and British Columbia. Both are up 60-70 cents per mmBtu in comparison to last week and trading around 2.5 per mmBtu.

– Simultaneously, Canadian gas exports to the US have been dropping from 5.2 BCf per day to 3.9 BCf per day. This is even though there has been some upside, supplies into the Pacific Northwest depend on the weather in Alberta.

2. Lithium Merger to Create Battery Metal Major

– The $10.6 billion merger of two lithium-focused mining companies Australia’s Allkem. and the US-headquartered Livent, is set to create the world’s third-largest lithium miner.

– Livent CEO Paul Graves will become chief executive of the new company, to be US-based and listed on NYSE, while Allkem’s non-executive chairman will be its chairman.

– The deal has buoyed shares of other lithium producers as more M&A deals are now on the table, in a bid to consolidate production lines and ease sourcing for EV carmakers globally.

Click here to read the full article

Source: Oil Price

If you have further questions about the topic related to any oil and gas global investment, feel free to contact us here.

Enterprise Products’ Oil Pipeline Volumes Rise on Permian Basin Output Growth

Enterprise Products Partners (EPD.N) first-quarter crude oil pipeline volumes increased slightly. The pipeline and storage company said on Tuesday, helped by production growth in the top U.S. shale basin.

Enterprise has remained bullish on oil production from the Permian Basin. It spread across Texas and New Mexico and is looking to build a crude oil export terminal. The target is on the Gulf Coast to help push some of those barrels into the foreign market.

The company’s Sea Port Oil Terminal (SPOT) project received a record of the decision late last year, a significant milestone in obtaining a license.

Enterprise said on Tuesday it expects the SPOT project to receive other permits and a license in the second half of 2023, Jim Teague, the company’s co-chief executive officer, told analysts on a conference call.

“Across our integrated system we continue to see crude oil, natural gas, and NGL production growth from the Permian Basin,” Teague said in a statement, adding that domestic and international demand for U.S. energy and energy products remains resilient.

Enterprise sees growth opportunities from gathering and processing in the Permian broadly, the company said.

Total crude oil pipeline transportation volumes rose to 2.3 million barrels per day (bpd) in the three months to March 31, from 2.2 million bpd a year earlier, the company said.

Crude oil marine terminal volumes rose 5.7% to 841,000 bpd.

Click here to read the full article

Source: Reuters

If you have further questions about the topic related to Enterprise Products, please contact us here.