Oil major BP is considering spinning off some of its US pipeline assets into a master limited partnership and launching an initial public offering for it. The MLP, BP Midstream Partners, would include crude oil, natural gas and refined product pipelines in the US Midwest and Gulf Coast, such as the Mardi Gras system and the Capline crude system.
The number of drilled but uncompleted oil and natural gas wells across the seven major US shale plays has increased by 1,000 since December 2016, surpassing 6,000 by June, according to the Energy Information Administration. The Permian Basin alone has seen its backlog of such wells almost double from 1,200 a year ago to nearly 2,250 now -- an imbalance that threatens to further weaken West Texas Intermediate prices unless producers step up completions or slow the pace of drilling of new wells, John Kemp writes.
Since becoming president and CEO of Occidental Petroleum, Vicki Hollub has made the company a more efficient, cost-effective and flexible Permian Basin producer with more than 50 years of reserves left and the ability to boost production at $45 oil. "We're integrated like a major, pay dividends like a major, but we're small enough that we can still generate solid growth," Hollub said.
US crude stockpiles showed an increase of 1.6 million barrels in the week ended Friday, compared with expectations for a decline of 3 million barrels, according to the American Petroleum Institute. Gasoline and distillate supplies fell by 5.4 million barrels and 2.9 million barrels, respectively.
Hydraulic fracturing and pressure pumping provider BJ Services, which was separated from Baker Hughes in 2016, plans to launch an initial public offering of up to $100 million. BJ Services has 43 fracking crews and 241 cementers, with about half of each currently active.
House Republicans on Tuesday published a budget proposal for fiscal 2018 that includes a provision seeking $5 billion in deficit reduction from the House Natural Resources Committee over 10 years. The provision would essentially enable the committee to open the Arctic National Wildlife Refuge to oil and natural gas drilling.
The US Army Corps of Engineers expects to complete an additional environmental review of the Dakota Access Pipeline by the end of the year and recommended that the pipeline be allowed to continue to operate during the study. "The low possibility of an oil spill means that there is little chance that (tribal) plaintiffs will be harmed at any time, much less during the remand period, which is anticipated to be completed by the end of the year," Corps attorney Reuben Schifman said in court documents filed on Monday.
Total, Wintershall Energia, BP's Pan American Energy and Argentina's YPF will make a $1.15 billion investment in shale gas production at Argentina's Vaca Muerta formation. Total will operate the eastern section of Aguada Pichana, where 48 wells will be drilled, and Pan American Energy will drill 24 wells in the western section and Aguada de Castro, the companies say.
Offshore oil drillers are making use of new technologies to improve topside, subsea and downhole procedures. Among the innovations are a vessel design that reduces ocean motion, open-hold expandable technology for drilling liners, and reamers that work better for drilling in abrasive formations.
Scientists used a synchrotron particle accelerator to make 3D videos that show how fluids move through rocks deep in the Earth. The engineers from Imperial College London found the flows are unstable, with pathways lasting for short periods before turning into new ones.
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