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Natural Gas Industry

3 Things To Know About The U.S. Oil And Natural Gas Industry

Obviously, there’s a lot more than just three, but let me hit on the triad of pillars. Let’s learn more about the U.S Oil and Natural gas Industry here.

Producing at All-Time Record

Over this time, U.S. crude oil production has surged 140% to 12.2 million b/d, while gas output is up 55% to 88 Bcf/d.

The U.S. is now easily the world’s largest oil and gas producer, yielding 20% more oil and 25% more gas than Russia.

Will Still Supply the Bulk of Our Energy

Today, oil and gas are our two most important sources of energy, meeting 65% of total U.S. energy demand.

We lean on oil for 97% of our transportation needs, and increasingly, natural gas leads by generating 35% of all U.S. electricity.

This will be a cornerstone of meeting our climate change and environmental goals: “Thanks to Natural Gas, US CO2 Emissions Lowest Since 1985.”

Going Global

Not just being the largest oil and gas producer, The U.S. could also become the largest global seller of these essential fuels within five years.

Our total LNG export capacity stands to reach nearly 8 Bcf/d, or nearly 20% of the total global demand market.

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Source: Forbes.com

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Oil May Hold The Secret To Ending The Trade War

Oil May Hold The Secret To Ending The Trade War

On Wednesday, U.S. President Donald Trump crushed any hopes of a trade deal with China when he announced that China “broke the deal” and that, as a consequence, the U.S. will enforce even higher tariffs on some imports from China starting on Friday, May 10. Is oil resolving trade war in talks?

According to some experts, however, the dip in crude prices is just temporary. With global crude supply tightening thanks to sanctions on Iran and Venezuela, as well as a surprise decline in U.S. crude production, long-term price projections are looking up. In fact, West Texas Intermediate and Brent futures are up by 30 percent or more year to date, and MarketWatch reports that analysts at Barclays are extremely optimistic, already increasing their third-quarter forecasts by $4 each for both benchmarks.

The United States has become one of the most important energy producers–and currently the fastest growing producer of “global energy supplies” — thanks to the shale oil boom in the West Texas Permian Basin. At the exact same time, China has become the fastest-growing energy consumer, especially when it comes to oil and liquefied natural gas–both of which the U.S. has in spades. “So while the dispute around tariffs goes far beyond trade balances,” argues Sheppard, “energy is one area where the two countries have a mutual interest in finding common ground.

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Source: oilprice.com

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The Trade Fight Between the U.S. and China Is Weighing on Oil Prices

Escalating Weighing on Oil Prices

Crude explorers deployed fewer rigs in U.S. fields this week amid an escalating weighing on oil prices a trade war between U.S. and China.

In response to mounting pressure from investors, exploration companies have taken drastic measures to demonstrate fiscal responsibility and maximize returns for shareholders. One notable action has been the decision to idle nearly 10 percent of the onshore U.S. rig fleet during the first five months of this year. This move is a clear reflection of the current outlook for oil demand, which has been affect by the ongoing trade dispute between the United States and China, two of the world’s largest economies.

The Future of Oil

As the trade tensions between these economic powerhouses continue to escalate, the future of oil demand remains uncertain. The protracted dispute has caused a significant decline in economic confidence, affecting various industries, including the energy sector. With both countries imposing tariffs on each other’s goods, the resulting economic slowdown has led to a decrease in oil consumption. This has prompted explorers to exercise caution and curtail operations by idling a substantial portion of the onshore U.S. rig fleet, in an effort to align production with the current market demand.

However, despite these measures, the situation remains fluid and highly unpredictable. The Asia Society’s Stone Fish warns that the ongoing trade talks between the United States and China may actually worsen before any signs of improvement are seen. This suggests that the challenges faced by exploration companies and the overall oil industry may persist in the near future. The outcome of the negotiations between the two economic giants will undoubtedly have a profound impact on oil demand and subsequently, the strategies adopted by explorers to navigate through these uncertain times.

 

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Source: Bloomberg.com

 

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Rystad: U.S. Shale Is Now The World’s Second Cheapest Source Of Oil Supply

Cheapest Source Of Oil Supply

U.S. shale oil was the world’s second most expensive oil resource is now the cheapest source of oil supply.

Just behind the giant onshore oil fields in the Middle East, Rystad Energy said on Thursday.

Rystad estimates its cost of supply curve update that the average Brent Crude breakeven price now is US$46 a barrel.

4$ above the average $42 per barrel breakeven price for the fields in Saudi Arabia and other Middle Eastern countries.

In 2015

Shale ranked as the second most expensive resource in Rystad Energy’s, with an average breakeven price at $68 per barrel.

In 2019

Onshore Middle East leads the cheapest source of supply, followed by North American shale, offshore shelf with average breakeven price of $49 a barrel, deepwater with a $58 breakeven price, and Russia onshore with $59 a barrel breakeven.

The most expensive source of oil supply is the oil sands, where the breakeven oil price is $83 a barrel.

According to the Q1 Dallas Fed Energy Survey, with executives from 82 E&P firms chiming in, average breakeven prices to profitably drill a new well in the U.S. range from $48 to $54 per barrel, depending on the region. Drillers need $50 a barrel on average to profitably drill a new well, down from $52 per barrel when the same question was asked last year. Average breakeven prices in Midland in the Permian were $48, the lowest-cost in the U.S., and the lowest-cost region in the past three years.

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Source: oilprice.com

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Occidental Petroleum took on the Chevron Giant and Won Big in the Permian Basin

Vicki Hollub won a bidding war for Anadarko Petroleum Corp. She is the chief executive of Houston oil company Occidental Petroleum. It was against oil giant Chevron Corp. And everything about the deal is why the center of gravity for the oil universe has moved to Texas.

She has confidence in her company’s ability to operate the Anadarko assets at a lower cost. She believe she can pull together a team to negotiate a $38 billion offer that includes two big partners. It is with the french petroleum company Total SA and Nebraska investment giant Warren Buffett. That is how she Occidental Petroleum took on the Chevron Giant.

Thanks to fracking and horizontal drilling technology developed here in North Texas and applied to the Permian Basin, Texas has become a major oil producer and the U.S. has become an oil exporter.

Houston oil executives no longer have to look to the furthest reaches of the world to boost production; a short flight to Midland brings them to one of the richest boom regions on the globe. Nobody has to negotiate with a Saudi or a Russian for access; in West Texas, the fiercest barriers to drilling are money, tumbleweeds, and, in the case of Chevron, Hollub.

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Source: Dallasnews.com

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Verify: Texas oil is the new gold rush

Texas oil

Texas oil is the new gold rush: Men work 100 hours a week. Roads are a mess. Electricity can be in short supply. But “anyone with a pulse” can make $100,000. You won’t believe what’s happening in the Permian Basin.

PECOS, Texas — Welcome to the Permian Basin, six hours west of Dallas.

Compared to the last West Texas oil boom in 2014, there’s almost four times more oil flowing in the Permian Basin.

Oil and gas companies have turned this dusty, desert landscape into a heavy industrial zone. Small towns, once sleepy, are now exploding. The pace is so frantic, I want to know if Texas has the infrastructure and resources to keep this up?

LEAVING PECOS

It’s 5:30am, in Pecos, Texas, and I’m meeting up with Jesse Lane. He’s been working in the West Texas oil field for two years as the operations manager of Nimble Crane.

“Anything heavy that needs to be moved in the Permian Basin, we pick it up,” he tells me.

“Which is a lot of stuff out here?” I ask.

“Everything,” he says.

Most of the guys out here work 21 days with seven days off. It’s common to clock 100-hour work weeks. Workers live in pop-up trailer parks or portable motels called “man camps.”

Jesse told me I wouldn’t believe what’s going on unless I saw it for myself. So I came. We started our tour by checking out a few gas stations in town where heavy trucks are lined up to get fuel.

“So, it’s 5:45 in the morning and look at the line to get fuel. In this little town where there should be nothing going on,” Jesse says.

We’re making our way west, from Pecos to the town of Orla, deeper into the oil fields. We make a left turn onto a highway that’s jammed with oversized trucks.

“Left turn into traffic. Wrong time of day,” Jesse tells me as we wait. “Everybody right with Jesus? It’s the wild west, man,” Jesse says.

As the sun rises, traffic on the two-lane highway is completely stopped. We’re a half-mile from Orla, population 56. There’s a four-way stop in town and hundreds of heavy trucks all need to squeeze through.

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Source: WFFA.com

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Ohio shale investment hits $74 billion since 2011

Ohio Shale Investment Hits $74 Billion Since 2011

Investment in the energy-rich shale sector in eastern Ohio continues to grow. It is reaching $74 billion since 2011, according to a report commissioned by JobsOhio.

The quarterly report is by Cleveland State University’s Energy Policy Center at the Maxine Goodman Levin College of Urban Affairs. It shows that about two-thirds of that investment has been in drilling, land acquisition, building roads, and other expenses. It is tied to the “upstream” portion of oil and gas production.

The rest has been spent on activities such as collecting and gathering oil and gas. Along with it is the transmission lines and investments in natural-gas power plants and other uses.

The study represents investment through the first half of 2018. It comes just weeks after researchers at IHS Markit released estimates that show by 2040, the Utica and Marcellus shale regions in Ohio, West Virginia, and Pennsylvania will supply 45% of U.S. natural gas production. That’s up from 31% this year.

Production of natural gas liquids ethane, propane, and butane is expected to double during this period, accounting for 19% of the nation’s total.

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Source: The Alliance Review

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Top Heavy Oil Markets Continue To Rally

Top Heavy Oil Markets Continue To Rally

U.S. West Texas Intermediate and international-benchmark Brent crude oil managed to eke-out a small gain for the holiday-shortened week. With that, two-sided price action indicated cracks may be developing in the bullish narrative.

Despite hitting a new five-month high earlier in the week, the crude oil markets experienced a slight downturn towards the end of the week. However, Thursday’s gains managed to prevent the markets from closing lower for the week. This volatility suggests that the market may be top-heavy, indicating a potential reversal or correction in the near future. It is important to note that the below-average pre-holiday trade may have had an impact on the overall trading activity and market performance.

Crude Oil Prices Reached a Five-month High Earlier | Top Heavy Oil Markets

The fact that crude oil prices reached a five-month high earlier in the week indicates a strong bullish sentiment in the market. This can be attributed to various factors such as geopolitical tensions and supply disruptions. However, as the week progressed, the market witnessed a slight decline, raising concerns about a potential reversal. Despite this, Thursday’s gains provided some relief and prevented the market from ending the week on a negative note.

Although the market’s performance this week suggests a top-heavy market, it is crucial to consider the influence of below-average pre-holiday trade. With many market participants taking time off ahead of the holiday season, trading volumes and liquidity might have been lower than usual. This could have contributed to the increased volatility and fluctuations in the crude oil markets. Therefore, it is essential to analyze the market dynamics in a comprehensive manner and consider the potential impact of external factors on the overall price action.

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Go to tha Article Main Source: OilPrice.com

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