US drilling activity has surged 60% and well completions rose 30% over the past year, driven by a wave of shale investments that totaled $100 billion, according to Norwegian consultancy Rystad Energy. Rystad analyst Espen Erlingsen predicts that shale investments will continue to accelerate this year, potentially increasing by another 50%, while US oil production could hit 9.3 million barrels in May, up from 8.9 million barrels in November.
President Donald Trump's proposal to slash the corporate income tax rate from 35% to 15% might prove problematic for shale producers if the administration decides to eliminate tax breaks and other incentives to compensate for the tax cuts, Bloomberg Intelligence analysts warned. Oil and natural gas exploration and production companies could save up to $13 billion a year thanks to the corporate tax reductions, but analysts say it's not worth it because tax deductions could help these companies save $35 billion over the next decade.
Cheniere Energy will deliver a batch of US liquefied natural gas to Poland in June as part of a contract with Poland's state-owned PGNiG, marking the first time the US will be exporting shale gas to Central and Eastern Europe. Poland's contract with Cheniere comes as the country seeks to reduce its dependence on Russia.
Canadian oil company Suncor Energy is weighing more oil sands deals in Alberta as international oil companies continue their exodus, but CEO Steve Williams said during Suncor's first-quarter earnings call that the company was in no rush to buy, although it may be one of the few companies capable of purchasing. Royal Dutch Shell, ConocoPhillips and Marathon Oil have shed about $22.5 billion worth of oil sands assets this year, while Chevron and BP are reportedly considering similar moves.
BP announced it has come across an oil reserve of 200 million barrels at its Atlantis field in the US Gulf of Mexico, uncovered with the help of advanced seismic imaging technology that produces highly accurate subsea images. The amount of recoverable oil in the reserve could be worth $2 billion.
President Donald Trump is expected today to issue a new executive order designed to open more offshore areas to oil and natural gas development and review the Obama administration's five-year drilling plan, which excludes Arctic waters and large swaths of the Atlantic. However, it could take two years to amend former President Barack Obama's plan.
France's Total says it expects a decision on the first floating, production, storage and offloading vessels at the Libra oil project in Brazil by summer. Total is a partner with Petroleo Brasileiro at the field, which could produce 180,000 barrels of oil per day in 2020.
India's Oil and Natural Gas Corp. drilled a record 100 wells, made 23 oil and natural gas discoveries and increased exploration in 2016-17, the company says. The new discoveries, up 35% over the previous fiscal year, consisted of 13 on land and 10 offshore.
Crude oil production in Texas, the top oil producer in the US, reached 70.3 million barrels in February, up from 70.2 million barrels in February 2016, the Texas Railroad Commission said. Output from the Permian Basin in Texas has increased every month except for three since January 2016, according to the Energy Information Administration.
Mexico's state-owned Pemex has approved a deepwater joint venture in the Gulf of Mexico's Nobilis-Maximino block, which is estimated to contain 500 million barrels of oil equivalent. Pemex is seeking a partner to develop the 1,524-square-kilometer block, which is south of the US-Mexico maritime border in the Perdido Fold Belt and has a water depth of about 3,000 meters.
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