The severe drought in California, water-intensive drilling programs needed to increase oil and gas production from shale plays and focus on the energy-water nexus are motivating companies to reduce their water requirements and re-use water needed to hydraulically fracture wells. A new Rice University study conducted detailed analysis into produced water from 3 major US… Keep reading →
As the Mexican government and state-run PEMEX aim to produce more oil in Mexico, U.S. natural gas producers, particularly in South Texas, have been happy to send growing amounts of natural gas to supply Mexico’s growing demand. Figure 1 Source: BP Statistical Review Because the U.S. is producing record volumes of natural gas, access to… Keep reading →
The Brookings Institution, a think tank in Washington D.C., recently published “Big Bets & Black Swans – A Presidential Briefing Book” with policy recommendations for President Obama in 2014. Among a plethora of issues addressed, Tim Boersma and Charles K. Ebinger also discuss lifting the ban on U.S. oil exports. Let’s briefly assess the validity… Keep reading →
Berkshire Hathaway energy unit MidAmerican Power Holdings has agreed to buy wind turbines with an estimated value of more than $1bln from Siemens. IFM Investors has agreed to invest $1.3 billion in equity funding for the proposed three-train Freeport LNG natural gas liquefaction and export plant in Texas, sourced from a consortium of project finance ledners. The funding in question… Keep reading →
Rising oil output in the US has already begun to alter the traditional price relationship between US and international crudes, and continued production growth could lead to a domestic glut of certain grades, adding to pressure to lift restrictions on crude exports. The stunning turnaround in the US’ oil fortunes has made plenty of headlines,… Keep reading →
Devon has agreed to pay GeoSouthern Energy $6 billion for assets in the Eagle Ford shale that currently produce 53,000 barrels per day of oil equivalent and hold recoverable resources of 400 million boe, most of that proved reserves. [Devon] Oil and gas producer Cabot will pay a $975,000 civil penalty and spend an estimated… Keep reading →
Guy Chazan must have inwardly rejoiced while interviewing outgoing Shell CEO Peter Voser for his piece in the Financial Times (which I’d link to, but they have a frustrating paywall situation). Most of the interview is about dull and important matters like capital expenditure cycles for oil majors, but Voser gave the FT a little… Keep reading →
BP and the US federal government are at odds over how much oil was actually spilled into the Gulf of Mexico as a result of the Deepwater Horizon incident in 2010: BP says 2.45 million barrels, the US government says 4.2 MM bbl. “Clean Water Act fines…range from a maximum of $1,100 for every barrel… Keep reading →
A big story in a light news week…a study in the online edition of Earth and Planetary Science Letters suggests that removal of substantial volumes of oil from the Eagle Ford shale is driving increased seismic activity in the area. Other studies examining links between oil and gas production – specifically hydraulic fracturing – and… Keep reading →
Ron Wyden, Democratic Senator from Oregon and Chairman of the Senate Committee on Energy and Natural Resources, grilled oil market experts today on why US consumers are not benefiting from higher US oil production via lower gasoline prices at the pump. Those experts indicated that whether or not they are aware of it, US consumers… Keep reading →
