Encana, the Calgary-based oil giant, has increased its investments in Texas Oil Fields despite a disastrous performance in the last 12 months following the steep decline in oil prices. “The timing was woeful, of course. Encana, led by new CEO Doug Suttles, bought its Texas oil at the top of the market, just before oil prices began their 50% plunge. Since Encana bought Athlon, shares in Permian-focused producers like Concho and Cimarex and Pioneer are down more than 20%. My sources say that acreage in the heart of the Permian that was going for nearly $30,000 an acre a year ago now only fetches half that. Had it waited until now to make a deal, Encana probably could have gotten Athlon for $2 billion less.
In the Permian, Encana intends to burn through $700 million to run about 10 rigs that will drill 55 horizontal and 110 vertical wells and grow production there 50% to 45,000 boepd. In the Eagle Ford it will lay out $550 million on 3 rigs that will do 60 wells and grow output to 50,000 boepd. [Forbes]
The UK and seven other countries have called on the European Commission to produce a new package of nuclear aid funding and support to help meet climate change targets and energy security objectives. “New state aid guidelines are also needed, it says, and these should be based on past EU decisions, including the approval of the UK’s planned Hinkley Point C nuclear plant in Somerset.
“It is vital that the forthcoming communication on an Energy Union reaffirms the important role that nuclear power, together with renewables, other low carbon technologies, and energy efficiency improvements, can potentially play in Europe,” the message says.
The letter to the commission’s vice president Sefkovic and climate commissioner Miguel Cañete was signed by the Romanian energy minister, Andrei Gerea, on behalf of ministers in seven other countries including the UK, France, Poland, the Czech Republic, Lithuania, Slovenia and Slovakia.” [The Guardian]
Voters of Hermosa Beach, a small community on the Pacific Ocean south of Los Angeles, overwhelmingly denied permission for the construction of up to 34 oil wells on a 1.3 acre municipal parking lot in the center of town. “According to unofficial returns, the measure was defeated 3,799 to 1,016.
The initiative would have created an exception to what is currently a ban on oil drilling there, in order to permit E&B Natural Resources Management to proceed with a previously approved contract to do the drilling.” [NY Times]
