US Gulf Coast refiners are planning to invest billions of dollars in refinery expansions and upgrades to capitalize on the abundance of cheap Permian Basin crude oil supplies. ExxonMobil is building a new unit at its Beaumont, Texas, refinery to increase its light crude processing capacity by around 250,000 barrels per day, while Chevron has said it may purchase or build a refinery in the Houston area to handle the company's sizable Permian output.
US crude inventories declined unexpectedly by 1.5 million barrels last week, the American Petroleum Institute reported. During the same period, API says that gasoline stockpiles gained 706,000 barrels, and distillate supplies shed 1.8 million barrels.
Lonestar Resources acquired 2,706 net acres with production of 800 oil equivalent barrels daily in DeWitt County, Texas, from Sabine Oil & Gas and Alerion Gas AXA for $38.7 million. Lonestar has located 26 potential drilling locations across the parcel in the Late Cretaceous Lower Eagle Ford formation.
The Interior Department published a notice Tuesday announcing its intent to write a new management plan for Alaska's National Petroleum Reserve that could allow oil development on lands where drilling is currently prohibited. "Some of the acreage that is probably most prospective is currently not available for leasing under the plan; we want to take a look at some of those areas," said Joe Balash, Interior's assistant secretary for land and minerals management.
House Democrats, led by Rep. Frank Pallone Jr., D-N.J., wrote a letter asking acting Environmental Protection Agency Administrator Andrew Wheeler to explain why his agency is rolling back climate change regulations targeting oil and natural gas producers, cars and power plants. The letter comes as Democrats prepare to ramp up their scrutiny of the Trump administration's deregulatory actions after the new Congress is sworn in Jan. 3.
Teams are productive when leadership style, personalities and skills align, but one more factor pushes them into high gear, writes Art Petty. "Everyone must agree that what they are doing in aggregate and as individuals matters," he writes.
The over 25% decline in oil prices since early October resulted in global oil and natural gas companies shedding roughly $1 trillion in market value over the same period, with S&P 500 energy stocks accounting for almost $240 billion of the losses. The devaluation may jeopardize companies' expansion plans, hurt their ability to hire and borrow money, and threaten employees' job security.
Domestic petroleum consumption soared to 20.8 million barrels per day in October, the highest monthly level since 2006, while gasoline demand also climbed to an October record of 9.5 million barrels per day, reports the American Petroleum Institute. "Strong petroleum demand is a continued reflection of a strengthening US economy," said API Chief Economist Dean Foreman.
Oil prices edged up on Monday amid reports that the EU is endorsing France's decision to impose sanctions on Iran over a failed bomb plot that would have occurred near Paris. West Texas Intermediate crude for December delivery gained 0.5% to close at $56.76 a barrel, while January Brent rose by less than 0.05% to settle at $66.79 a barrel.
Aethon III, an affiliate of private equity firm Aethon Energy Management, will acquire QEP Resources' Haynesville Shale assets in northwestern Louisiana for $735 million. Proceeds from the sale will be used for debt reduction, shareholder returns and funding for QEP's Permian Basin development.
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