US crude stockpiles added 1.4 million barrels last week, slightly below analyst expectations for a 1.6-million-barrel jump, the Energy Information Administration reported. Gasoline inventories increased by 1.8 million barrels, while distillate supplies slid by 1 million barrels.
Approach Resources has filed for Chapter 11 bankruptcy protection and is considering strategic options, including a restructuring of its balance sheet or a sale. Approach has operations in the Midland portion of the Permian Basin, with 2018 production averaging 11.2 million barrels of oil equivalent per day.
Petrofac has purchased W&W Energy Services in a deal that gives the oilfield services giant an entry-level position in the Permian Basin. "Given the Permian's increasing production volumes, infrastructure support requirements and the rising activity of major operators, this acquisition provides a platform to grow EPS," Perofac's John Pearson said.
The Trump administration's regulatory priorities for fiscal 2020 will include amending Arctic drilling rules, authorizing LNG-by-rail, adopting final biofuel blending volumes and overhauling oil spill response rules and pipeline standards.
NuStar Energy is holding a binding open season to assess shipper interest and secure capacity commitments for a 60,000-barrel-per-day expansion of its Midland Trunkline within the NuStar Permian Crude System. The open season ends on Dec. 20.
A combination of factors such as low oil prices, faltering demand and a credit crunch are sending the US shale sector into a tailspin, leading to a rise in energy bankruptcies and layoffs as well as a drilling slowdown. "We went from having three-year contracts to well-to-well contracts, which means you drill one hole and if you did a good job, then they'll give you another," says Ron Fountain, a rig worker in North Dakota's Bakken Shale.
A new study conducted by researchers with Miami University and the US Geological Survey found that more than 2,400 of 2,823 earthquakes that occurred in the Eagle Ford Shale between 2014 and 2018 may be tied to hydraulic fracturing. The probability of seismic events happening doubled when operators injected fluids into multiple neighboring wells at the same time, the study found.
A US ban on hydraulic fracturing would more than halve shale output within two years, lifting oil prices above $100 and potentially causing a global economic shock, said the Energy Policy Institute's Sam Ori in an interview with the Wall Street Journal. However, Climate Law Institute director Kassie Siegel, who favors a fracking ban, contends that "any immediate economic repercussions to the economy can be offset if oil-and-gas companies are made to pay their fair share and if we overcome political opposition from the fossil-fuel lobby and implement well-designed policies."
Per capita personal income in Midland, Texas, and Odessa, Texas, increased by 17.4% and 14.6%, respectively, last year, the fastest growth across the nation, Commerce Department data show. Midland also surged above all other US cities in terms of per capita personal income, averaging $122,247 in 2018.
GlobalData says it expects 3D printing to play an important role in the oil and natural gas industry and potentially improve productivity. "3D printing ability to manufacture spare parts would not only speed up processes, but make them much more cost-effective," the company said.
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