Large independent exploration and production companies against oil majors. West Texas shale play economic, a factor that has large independents and oil majors jockeying for dominance by filing ever-larger batches of drilling down permits.

Exxon Mobil is preparing 25 horizontal wells spread out in Glasscock, Loving, Pecos, Reeves, and Winkler counties. The oil major has filed for 470 drilling permits in the Permian so far this year.

Not be outdone, Endeavor Energy Resources, an independent oil company owned by wildcatter billionaire Autry Stephens, filed for permits to drill 25 horizontal wells in Howard, Midland, and Reagan counties. The Midland company has filed for 203 permits so this year.

Over the past week, Chevron has filed for permits to drill three horizontal wells in Martin County. The oil major has filed for 145 drilling permits so far this year.

Diamondback Energy, an independent oil company headquartered in Midland, filed for permits to drill 10 horizontal wells in Howard County. The company has filed for 275 drilling permits so far this year.

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Source: Chron.com

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Traders have scrambled to calculate what the limit move in oil would be, after Saturday’s drone attack on the ‘’world’s most important oil processing plant’’. Let’s talk more about this oil price explosion.

And moments ago, Brent crude reopened for trading, exploding almost 20% higher, its biggest jump in 28 years time.

Bloomberg notes that this attack has resulted in the single-worst disruption in oil markets ever, surpassing the loss of Kuwaiti and Iraqi petroleum supply in August 1990, when Iraq invaded its southern neighbor. It also exceeds the loss of Iranian oil output in 1979 during the Islamic Revolution, according to data from the U.S. Department of Energy.”

Furthermore, in light of news that the Saudi outage could last for months, this could be just the start. As a reminder, according to Morningstar research director, Sandy Fielden, “Brent could go to $80 tomorrow, while WTI could go to $75… But that would depend on Aramco’s 48-hour update. The supply problem won’t be clear right away since the Saudis can still deliver from inventory.”

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Source: OilPrice.com

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While fracking has been going on in the U.S. since the late 1940s, it wasn’t until just after the turn of the century that it began to be increasingly used in conjunction with horizontal drilling. That marriage of technologies ushered in the fracking boom and resulted in a renaissance of oil and gas production.

The resurgence of natural gas production followed years of decline and corresponding natural gas price spikes. But as production rose, natural gas prices collapsed. This price collapse was a major factor for utilities switching from coal to natural gas, which in turn resulted in U.S. carbon dioxide emissions declining by more than any other nation. The U.S. became the top natural gas producer in the world, and began to export liquefied natural gas (LNG).

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Source: Forbes.com

Big Oil companies are betting $50 billion on oil and gas projects. Noting that the approval of these projects suggests the industry is still firmly on a path. The path that diverges from the Paris Agreement goals.

In a report “Breaking the Habit – Why none of the large oil companies are ‘Paris-Align’. What they need to do to get there”.

The climate change think-tank lists several oil and gas projects. This is an example of Big Oil’s divergent investment strategy for the future. These include the $13-billion LNG Canada project, the $3.6-billion expansion of the Gorgon LNG project, Exxon’s Aspen oil sands project, which will cost $2.6 billion, and the $1.3-billion Zinia 2 deep-water project led by BP, Exxon, Total, and Equinor.

Carbon Tracker says a Paris-compliant world would need a lot less oil and gas, which would make a lot of these projects unviable in such a world. Under a scenario where global warming is arrested at 1.6 degrees Celsius, the energy industry would need an 83-percent lower CAPEX, the think-tank says. Under a 1.7-1.8 degrees scenario, oil and gas CAPEX would be 60 percent lower.

Yet, according to the report, it is not preparing for a Paris-compliant world, judging by the recent project approvals. While Carbon Tracker is critical of this fact, it seems to be the realistic scenario as some begin to question the chances of the Paris Agreement goals.

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Source: OilPrice.com

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ODESSA, Tx. (KOSA) The Texas Transportation Commission voted unanimously on Thursday to provide an additional $2 billion in funding to improve Permian Basin roads.

With the Texas Transportation Commission approving $2 billion for transportation infrastructure, more than $5 billion total will be funneled into Permian Basin roads over the next 10 years.

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Source: cbs7.com