The Bakken shale, which spans parts of North Dakota, Montana and Canada, has been a significant source of recent oil production growth for the US (though far from the only source, as many readers would point out). The bulk of that production is in North Dakota, which is producing over 900,000 barrels per day as… Keep reading →
It’s day two of the federal government shutdown, and there’s no real sense yet of how long it might last. In the meantime, investment bank Simmons & Co has helpfully laid out some possible effects on the oil and gas industry, depending on its duration. This could include delays to additional Department of Energy approvals for… Keep reading →
The US Department of Energy announced yesterday that it had issued a conditional approval for LNG exports to countries with which the US does not have a free trade agreement from Dominion’s Cove Point LNG project. This brings the number of projects with non-FTA export approval to four – Sabine Pass, Freeport, Lake Charles and… Keep reading →
Investment bank Simmons & Co is forecasting a tightening of the spread between the price of US crude benchmark West Texas Intermediate and global benchmark Brent over the course of the next year, lifted by a robust pace of infrastructure development that can for efficiently move domestically produced oil to market. And with production challenges… Keep reading →
Investment bank Simmons & Co’s commentary on the International Energy Agency’s August Oil Market Report highlights geopolitical risk facing global oil supply. The report shows that Opec supply fell by 165,000 barrels per day from the previous month, even as Saudi Arabia lifted output to a 12-month high. “Domestic developments in member countries has taken… Keep reading →
Investment bank Simmons & Co’s long-term forecasting envisions 12-20 billion cubic feet per day of incremental US natural gas demand by 2020, pushing total demand to 82-90 bcfd from around 70 bcfd this year. LNG exports are the biggest driver, adding 4.2-6.8 bcfd, followed by exports to Canada and Mexico (2.5-3.4 bcfd), power generation (3.2-5.6… Keep reading →
The big story in crude oil markets over the past few years was the historic price divergence between West Texas Intermediate (WTI) and Brent, the world’s 2 most-widely traded crude oil contracts. However, after blowing out to an unprecedented $27 per barrel Brent premium in summer 2011, the story is now about Brent-WTI contraction and… Keep reading →
