The next bottleneck to hit the shale sector could form at the Port of Corpus Christi in Texas unless port officials expedite plans to deepen and widen the channel to accommodate larger ships, according to Sandy Fielden, Morningstar director of research for commodities and energy. Crude oil flows to Corpus Christi are expected to rise by over 1.5 million barrels per day in the second half of 2019 as new pipelines come online, Fielden said.
The Commerce Department has received over 500 requests for steel tariff exemptions for pipe and related materials from companies including Plains All American Pipeline, Kinder Morgan and Hess since the levies were announced earlier this year. Since imports make up about 77% of steel used in US pipelines, the industry is concerned that steel tariffs will raise project costs, cause delays and affect the price of oil.
Cox Oil has agreed to buy troubled offshore driller Energy XXI Gulf Coast in a $322 million deal that is expected to close in the third quarter. Energy XXI emerged from bankruptcy protection over a year ago but has not fully recovered financially.
US federal lands and waters produced an average of about 2.22 million barrels of crude per day in fiscal 2017, marking the highest level since at least 2007 and representing a 7% increase from 2016, according to the Interior Department's Office of Natural Resources Revenue. Meanwhile, federal natural gas production slipped 5% to 4.36 billion mcf.
Canadian oil and natural gas producer Baytex Energy has agreed to acquire rival Raging River Exploration in a $2.1 billion all-stock deal that is seen as boosting Baytex's Canadian shale operations. The combined entity is expected to produce 100,000 to 105,000 barrels of oil equivalent per day next year.
Scientists analyzed data and used geophysical mapping techniques to gain a better understanding of the tectonic history and seismic potential at the Yakima Fold Province in central Washington. The analysis of deformation in the Yakima Canyon region suggests major earthquakes could occur there every 200 to 6,000 years, researchers say.
SDX Energy has discovered natural gas at a site in the South Disouq license area in Egypt. CEO Paul Welch said the find would connect with infrastructure that is scheduled to begin production by the end of the year.
A vessel is gathering data at Providence Resources' Newgrange hydrocarbon prospect off the coast of southwest Ireland. The company will use the survey information for an application to drill an exploration well to a depth of 1,000 meters with Sosina Exploration.
Shell plans to drill a well at the Coeus hydrocarbon prospect in the Norwegian Sea, about 40 kilometers northwest of the Ormen Lange field. Shell, which has a 45% stake in the license, has received a permit to start drilling the well to a depth of 1,235 meters between July and September.
Royal Dutch Shell and Blackstone Group are reportedly bidding on BHP Billiton's US shale assets. BHP's assets would help more than double Shell's daily average shale production by 2020, according to JPMorgan Chase & Co.
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