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Oil Spikes After Algeria Says OPEC+ Cuts Could Reach 10 Million Bpd

The price of a West Texas Intermediate barrel of oil shot up on Wednesday afternoon by nearly 7% shortly after OPEC’s President gave the market fresh optimism about tomorrow’s virtual OPEC++ meeting.

“The meeting will undoubtably be fruitful in order to rebalance the market through measures we will take tomorrow,” Mohamed Arkab, OPEC’s President and Algeria’s Energy Minister told state news agency APS, according to Reuters.

While an intangible statement, the optimistic words spoken by the OPEC President seem to be just what the doctor ordered for the volatile markets as speculators try to make the most out of the oil-price plunge.

Read the full article here

Source: OilPrice.com

oil and gas landman

Oil and Gas Landman

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The United States is one of the few countries in which the subsurface rights of a property can be bought and sold for the purpose of oil and gas exploration. In this industry, an oil and gas landman is a person who acquires subsurface mineral rights in order to seek, drill, and sell valuable materials from below the Earth’s surface.

A landman is not always necessarily the direct owner of an oil and gas operation’s mineral rights, but rather may receive overriding royalty interests as they can also be involved simply with business agreements or the extraction process of the minerals.

What Exactly Does an Oil and Gas Landman Do?

There are actually quite a few different roles a landman can play in the process of bringing oil and gas to market. Landmen are often heavily involved with financial negotiations and procurement processes involved in the extraction of valuable minerals. Some of the most common examples of oil and gas landman’s duties include:

  • Researching public and private records to determine ownership of mineral rights
  • Reducing title risks of mineral right ownership
  • Negotiating the sale or purchase of mineral rights
  • Determining ownership, managing, or combining mineral rights
  • Contracting surveyors and extraction teams for procurement

Landman Certification Levels

If you are interested in how to become an oil and gas landman, or simply want to check the credentials of an individual while selling your mineral rights or oil and gas royalties, then you should be familiar with the three certification levels of a professional landman. As designated by the American Association of Professional Landmen (AAPL), they are as follows:

Registered Landman (RL) – The most basic and easiest certification generally seen as the first step to becoming an expert in the field.

Registered Professional Landman (RPL) – The second level, which typically requires about 4 years of experience as a registered oil and gas landman.

Certified Professional Landman (CPL) – An expert-level certification that is given to experts in the field with a large amount of experience and education.

5 Things to Do Before Signing an Oil and Gas Lease

5 Things to Do Before Signing an Oil and Gas Lease

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Oil and Gas Lease

If you own mineral rights and are considering selling them to earn cash or minimize your tax deductions, then there are a lot of things you must consider before striking a deal and physically signing all of the paperwork and documents. We’ve compiled a list of five of the most important things to think about and do before entering an oil and gas lease for oil and mineral rights or royalties.

1. Ask Questions

Are  you already familiar with the majority of the industry’s terminology? There are a lot of players in the oil and gas fields that are very experienced in their fields. If you are unsure about anything during the process of signing an oil and gas lease, asking questions is going to be the best way to get certified, professional opinions about your individual situation.

2. Be A Good Person

You may think that someone approaching you about your mineral rights is trying to take from you everything they can. This is simply not true, as most oil and gas lease agreements are agreed upon by nurturing a good relationship between all parties. Staying civil and acting rationally will help you get the most benefit in the partnership of your oil and gas lease.

3. Negotiate Oil And Gas Leases

This may be the most crucial part of signing a strong oil and gas lease. Everything is negotiable, so why not negotiate? Mineral rights and royalties are high-value assets, so it is important to get the best possible deal.

4. Know Your Worth

In any negotiation, it is very important to try and best estimate the value of your mineral rights and royalties. Depending on the kind of asset you own, you can estimate value by running a cost-benefit analysis of your producing mineral rights or surveying some of the production activity in your area to value your non-producing mineral rights.

5. Get as Much as You Can

In an oil and gas lease, there is often more than just a one-time cash deal. In order to maximize your future earnings, it is advised to explore special lease provisions. Having a bonus royalty for a small percentage of production can go a long way over an oil and gas lease agreement that can last for decades.

Conclusion

Ultimately, when it comes to signing an oil and gas lease, it is best to be patient and resist the urge to proceed quickly. Consulting experts and having a full understanding of mineral rights and oil and gas leases is the best way to ensure the best contract for all parties.

Oil and Gas Leases For Dummies 2020

Oil and Gas Leases For Dummies 2022

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Updated: July 25, 2022

Made for those who are new in this industry, oil and gas leases for dummies is a quick guide on some of the basic ins and outs of the industry’s most commonly asked questions. Below, we will outline some beginner-friendly information in order to give you a good foundation for understanding how an oil and gas lease works.

What is an Oil and Gas Lease?

An Oil and Gas lease is a common agreement between a property owner and an oil and gas company, giving the company permission and access to produce valuable minerals from the property owner’s land.

How Does an Oil and Gas Lease Begin?

More often than not, an oil and gas company will determine that a piece of land is likely to be a highly producing plot for oil, gas, or other valuable minerals. They will then approach the owner of the land and offer to lease it in order to explore and drill below the surface.

If you are a mineral rights or surface rights owner being approached by an oil and gas company that would like to lease your land, it is highly suggested that you speak to a professional before agreeing to anything. Doing so will enable you to earn the highest possible royalty from any oil or gas produced from your land.

When Does an Oil and Gas Lease End?

Although all contracts are different, most oil and gas leases follow a familiar format. Initially, there is a primary lease term with an ending date that is honored if the land is not actually drilled or producing minerals. If the land is being actively explored or mined, then the lease will go into its secondary term. In the secondary term, an oil and gas lease will end on a specified date or after a predetermined period of idleness such as 60 or 90 days.

Should I sign an Oil and Gas Lease?

As mentioned above, it is always best to consult a professional before signing an oil and gas lease. If you are a mineral rights owner and are approached to sell or lease your rights by an oil and gas company, you may be headed towards a profitable venture if you take the right steps to fully understanding your oil and gas lease.

Oil Jumps 3% in Volatile Session as Fed Promises Aggressive Asset Purchases to Support Markets

Oil jumps more than 3% on Monday as the Federal Reserved announced aggressive asset purchases to support markets.

The central bank said it will continue to purchase Treasury securities and agency mortgage-backed securities

Traders are hoping that this additional support will put a floor under oil prices

WTI crude futures have been cut in half this month as a travel slowdown eats into crude demand, just as powerhouse producers Saudi Arabia and Russia prepare to ramp up production.

The rapid decline in prices has wreaked havoc in other areas of the financial markets, as investors have been forced to sell other other assets such as Treasuries or equities indiscriminately to cover losses in their energy positions.

Ed Morse, Citi’s global head of commodity research, believes there’s more downside ahead. He’s forecasting crude below $20 per barrel for much of the second quarter.

“I think it can go much lower,” he said Monday on CNBC’s “Squawk Alley.” “We don’t think the one-two punch is over, particularly on the demand side where the impact on transportation fuels in Europe and the U.S. is just beginning.”

Read the full article here
Source: CNBC

If you have further questions related to the latest oil jumps news, feel free to reach out to us here. 

Oil surges 23% to post best day ever, rebounding from Wednesday’s steep losses

U.S. oil jumped more than 23% on Thursday for its best day on record, as it clawed back more than half of the losses from Wednesday’s swoon.

As tensions between the two countries escalate, President Donald Trump said the U.S. could intervene, which contributed to oil’s gains in afternoon trading.

 

 

Read the full article here
Source: CNBC

Oil Jumps 8% on Stimulus Hopes, Spending Cuts by U.S. Producers

NEW YORK (Reuters) – Oil jumps over 8% on Tuesday, bouncing from the biggest rout in nearly 30 years a day earlier

On Monday, U.S. President Donald Trump pledged “major” steps to gird the U.S. economy against the impact of the spreading coronavirus outbreak.

Japan’s government said it planned to spend more than $4 billion in a second package of steps to cope with the virus.

U.S. shale producers, including Occidental Petroleum Corp OXY.N, deepened spending cuts that could reduce production.

“There was almost an immediate response from U.S. producers to cut spending that will likely result in diminished U.S. oil output in the months ahead,” said John Kilduff, partner at Again Capital LLC in New York, noting “The rapidity of that response helped buoy the market after Monday’s collapse.”

Oil plunged about 25% on Monday. It rebounded on Tuesday along with equities and other financial markets.

Brent futures LCOc1 rose $2.86, or 8.3%, to settle at $37.22 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 rose $3.23, or 10.4%, to settle at $34.36.

“The oil price went up today because it went insanely down yesterday, and some bargain hunters are driving things up,” said Bjoernar Tonhaugen, head of oil markets at energy consultant Rystad, noting “It will go down further with some days going up in between.”

Read the full article here
Source: Reuters

If you have further questions regarding oil jumps trends, feel free to reach out to us here. 

Saudi Aramco needs cash with oil prices at a 17-year low — and now it may reportedly sell a piece of its pipeline unit

Saudi Aramco is stuck in an unprecedented price war and may need to sell a stake in its pipeline business to raise capital, Bloomberg reported on Monday.

The precipitous drop in oil prices through the month has the world’s largest producer strapped for cash ahead of some massive payments.

 

 

Read full article here
Source: Business Insider

WTI Crude

WTI Crude Rebound, Brent

Prices are rising for Brent and WTI crude. The gains follow steep losses and a warning on global demand from the International Energy Agency that says global demand is in “free fall.” Bloomberg’s Su Keenan reports on “Bloomberg Daybreak: Asia.” (Source: Bloomberg)

Brent crude climbed $3.57, or 5.5%, to end the session at $68.75 a barrel after touching its lowest since May 21 at $64.60 during the session.

U.S. West Texas Intermediate (WTI) crude for October delivery rose $3.50, or 5.6%, to settle at $65.64.

Both benchmarks marked their biggest week of losses in more than nine months last week, with Brent sliding about 8% and WTI about 9%.

But a drop in the U.S. dollar provided a boost on Monday, making crude less expensive for holders of other currencies.

“Although the oil complex has generally been able to shrug off strength in the stock market, the bullish combo of increased risk appetite and significant weakening in the U.S. dollar indices represents a potent mix that oil has been forced to recognize,” said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.

Read the full article here

If you have further questions about WTI Crude, feel free to reach out to us here. 

Lukoil

Lukoil: 1 Million Bpd OPEC+ Cut Send Oil To $60

OPEC and its Russia-led non-OPEC allies could push Brent Crude prices back to $60 a barrel. This is according to Lukoil.

Last week, OPEC’s leader Saudi Arabia was said to be asking members of the OPEC+ group. The request is to consider an additional collective cut of 1 million bpd.

The Organization of the Petroleum Exporting Countries and its partners will meet in Vienna on March 5-6. They are to discuss additional steps to support the oil market as the spread of the coronavirus risks hurting demand.

OPEC initially called for a cut of 600,000 barrels per day (bpd) to prop up prices. This is in addition to existing cuts of 1.7 million bpd which are expected to be extended.

Over the weekend Russian President Vladimir Putin suggested that Moscow will continue to play ball and cooperate with OPEC, although it sees current oil prices as “acceptable.”

Speaking to Reuters, Lukoil’s Vice President Leonid Fedun said that a collective OPEC+ cut of between 600,000 bpd and 1 million bpd would be sufficient to push Brent back up to $60 a barrel.

The comments of a top executive from Russia’s second biggest oil producer suggest that Russia will continue its cooperation with OPEC.

“We are ready to cut [our oil production] as much as we are told to. Better to sell less oil but at a higher price,” Fedun told Reuters.

On Monday, the executive told reporters he expects the OPEC+ group to reduce more than 1 million bpd of their collective production, with Russia cutting its output by 200,000 bpd-300,000 bpd.

Source: OilPrice.com

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