Past figures show that US shale drillers continued to produce at high levels during the downturn, even with oil prices in the low $30 range, which suggests they're unlikely to scale back considerably this time, according to Mauldin Economics. In a low price environment, drillers usually suspend exploration activity to get the most out of completed wells.
Demand to ship gasoline on Line 1 of the Colonial Pipeline, the largest US gasoline pipeline, has fallen below its 1.3 million-barrel-per-day capacity for the first time in six years even though US gasoline demand usually peaks during summer. "The only reason they wouldn't be full is clearly that inventory levels are high enough that there is no incentive to move product to New York," said Sandy Fielden, Morningstar's director of oil and products research.
Major oil companies, including ConocoPhillips and Occidental Petroleum, are increasingly harnessing the power of big data and data analytics to improve efficiency, cut costs and boost safety. For instance, ConocoPhillips has managed to reduce the time it needs to drill new Eagle Ford Shale wells by half using data collected from hundreds of sensors attached to production equipment, and the company believes these sensors could help it save billions of dollars.
Oil prices likely will settle at $40 per barrel in the second half of 2018 amid a persistent oil supply glut and with US oil production seen rising by 1.8 million barrels per day, Seaport Global Securities predicted. However, Seaport's managing director and head of E&P research, Michael Kelly, doesn't expect $40 oil to drive off investors unless oil prices fall below that level.
The first lease sale in Alaska's Cook Inlet in nearly a decade has garnered about $3 million in high bids from a single energy company, Hilcorp Alaska, the Bureau of Ocean Energy Management said. "Expanded oil and gas production is critical to America's economic and energy security, as we move to strengthen the Nation's energy independence in accordance with the administration's goals," bureau Acting Director Walter Cruickshank said.
BP Chief Commercial Officer James Straughan believes some US liquefied natural gas capacity will be shut down before the end of the decade because it's the only way to address the global LNG oversupply. Straughan sees the LNG glut worsening in the next couple of years because the US and Australia are adding capacity faster than the market needs.
The Oklahoma Corporation Commission's induced seismicity team is gathering data with its Well and Seismic Monitor tool, which identifies earthquake locations and compares them with wastewater injection sites. Well operators provide wastewater data daily to help the commission determine the relationship between injections and earthquakes in the state.
Britain's Oil and Gas Authority wants drillers to follow an eight-step program for tapping tight gas deposits in the southern North Sea. The regulator says about 3.8 trillion cubic feet of gas remain in the southern region, and companies can extract the resources by using new technologies and sharing equipment.
Redmond, Wash.-based Paroscientific wants to use its quartz sensors to help detect tsunamis. The devices sense the weight of water above them to monitor the sea floor's depth, providing an early warning of a tsunami after an earthquake moves the ocean bottom.
An offshore earthquake centered about 38 kilometers southwest of Puerto San Jose, Guatemala, injured four people and caused minor damage Thursday, the country's disaster agency said. The magnitude 6.8 quake, which the US Geological Survey said was about 10 kilometers below the surface in the Pacific Ocean, shook Guatemala and El Salvador.
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