US shale producers are showing a willingness to abandon growth ambitions in favor of improving cash flow and returns on capital, but this shift is not guaranteed, writes Liam Denning. The increasing backlog of drilled-but-uncompleted shale wells could provide investors with a signal as to growth in oil production and what oil prices will look like next year, he writes.
The emergence of the US as an exporter of liquefied natural gas could affect energy markets the world over, as the number of countries importing LNG has more than tripled since 2005. "In the near term, gas will replace coal, in the medium term it will partner with renewables, and in the long term it will take care of those parts of energy demand that cannot be electrified," said Maarten Wetselaar of Royal Dutch Shell.
Elevated construction costs and difficulty in securing long-term supply contracts could hurt the availability of credit for developers of US liquefied natural gas export terminals, according to S&P Global Ratings.
As the PennEast Pipeline awaits federal approval, project manager Tony Cox says the pipeline could help Pennsylvania and New Jersey consumers save hundreds of millions of dollars on electricity and natural gas.
Canadian oil sands operators are abandoning expansion plans and shifting to smaller projects because of high costs associated with new thermal projects, which have a break-even point of about $60 per barrel.
Kuwait Oil is using a downhole flow measurement tool on coiled tubing to flush oil out of reservoirs during the water-injection process in less time and at a lower cost. The tool identifies tight zones and monitors and controls the placement of fluid.
Natural gas drillers are refocusing their efforts on the Haynesville Shale field in northwest Louisiana and eastern Texas as companies learn to extract more gas from wells at lower cost by using technology such as long lateral wells. The number of rigs has more than tripled in the field in the past year, and gas production has increased by over 20%.
Reliance Industries and BP plan to drill five or six natural gas wells in India's Krishna Godavari Basin. The $1.5 billion investment aims to bring six satellite gas discoveries into operation by 2022, potentially producing 10 million to 12 million standard cubic meters of gas daily.
Italy has awarded the 19.5-square-kilometer Sant' Alberto natural gas production concession near Bologna to Australia-based Po Valley Energy. The company plans to install a modular gas-processing facility at the concession, which may hold 59.5 million cubic meters of gas.
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