Over the next few months, steady growth in US shale production will likely help counteract global production outages, according to energy analysts. With the US shale patch "in better financial shape than ever," says Stephen Brennock, an oil analyst at PVM Oil Associates, "the only way is up."
The amount of water used per well in US hydraulic fracturing operations has climbed by up to a whopping 770% between 2011 and 2016, which particularly threatens to limit freshwater availability in arid regions, according to a Duke University study. "If you're able to use more remedial sources, like wastewater, or to recycle some of the flow-back and produced water ... that solves some of the problems that the industry is currently facing," said lead author Andrew Kondash.
Carrizo Oil & Gas has agreed to purchase about 10,000 net acres in the Permian Basin from Devon Energy for $215 million. "We expect to seamlessly integrate these assets into our existing development plan for the area, which currently assumes a ramp-up in activity in the second half of 2019 as Permian pipeline takeaway is forecast to increase," said Chip Johnson, Carrizo president and chief executive.
US shale producer Diamondback Energy is taking over Energen in an approximately $9.2 billion all-stock deal including debt that would boost Diamondback's footprint in the Midland and Delaware basins by 85% to 390,000 acres. The company expects the transaction to result in at least $3 billion in cost savings over time.
Energy Transfer Partners is looking to expand the Dakota Access Pipeline's capacity from 500,000 barrels per day up to 570,000 barrels per day, with an official announcement likely to be made soon, says ETP CEO Kelcy Warren.
While the Permian Basin remains plagued by pipeline bottlenecks and labor shortages, many US oil producers focused on other shale plays are lifting their 2018 output projections without raising their capital expenditure budgets. Eagle Ford- and Bakken Shale-focused Marathon Oil increased its full-year production target to 400,000-415,000 barrels of oil equivalent per day, while EOG Resources expects to pump 706,700-728,300 barrels of oil equivalent per day, up from the previous forecast of 685,800-728,500 barrels of oil equivalent per day.
Williams Cos. has received permission from the Federal Energy Regulatory Commission to proceed with the Rivervale South to Market project, a Transco natural gas pipeline expansion. The project will add 190 million cubic feet per day of firm transportation capacity and should enter service before winter 2019-2020.
Egypt has approved Eni's plans to manage a hydrocarbon exploration license in the Nile Delta Basin. The Italian company, which also says it received a 10-year extension for exploration rights in the region and a five-year drilling extension in the Western Desert Basin, aims to start drilling in the Nile Delta later this year.