US shale producer Oasis Petroleum is seeking Chapter 11 bankruptcy protection, listing up to $10 billion worth of assets and liabilities. The company has obtained a $450 million debtor-in-possession facility and expects to reduce its $2.76 billion long-term debt pile by $1.8 billion.
Data from the American Petroleum Institute shows that US crude inventories declined by 831,000 barrels last week, gasoline supplies gained 1.6 million barrels, while distillate stockpiles slid by 3.4 million barrels.
Executives from trading houses Trafigura, Vitol, Mercuria Energy and Gunvor Group said Tuesday during the FT Commodities Global Summit that they don't expect a substantial recovery in oil demand for at least a year or two. They also anticipate some increase in oil prices by mid-2021, although it's unlikely they'll cross the $50 per barrel mark.
ConocoPhillips is shifting its operational focus to the Eagle Ford Shale in South Texas, citing low transportation costs, sufficient infrastructure, thousands of potential drilling locations and a lower natural gas output than the Permian Basin. The company operates four out of the Eagle Ford's total of 12 active rigs and produced 162,000 barrels of oil equivalent per day in the second quarter.
Marathon Petroleum has reportedly begun a workforce reduction program as it looks to solidify its business in response to the coronavirus-induced fuel demand collapse. The company had dismissed 165 workers in total from its refineries in Galveston Bay, Texas, Los Angeles and Garyville, La., as of Tuesday night, and more layoffs could be on the way, sources familiar with the matter said.
The House of Representatives on Tuesday approved four bipartisan bills that seek to step up cyber and physical protections for electric utilities and other energy infrastructure and support the sector's response to these threats. "As the grid and other forms of critical infrastructure become more digitized, the risk that cyberattacks will shutdown federal systems has increased and in some cases these attacks can even cause physical damage to the grid," said US Rep. Ami Bera, D-Calif., the co-sponsor of one of the bills.
Methods for mining the lithium needed to manufacture electric car batteries historically have not been cost-effective, though some companies in South America reduced expenses by using a method that involves excavating mud under Andean salt flats. "The industry's going to have some challenges as higher purity lithium compounds are required -- they're going to have to reinvent themselves," said Standard Lithium Chief Executive Officer Robert Mintak.
Royal Dutch Shell is shifting to a greater focus on low-carbon energy and will reportedly cut 7,000 to 9,000 jobs by the end of 2022 as a result. Shell is targeting a 2050 net-zero goal by making hydrogen and low-carbon biofuels its primary offerings.
A series of four earthquakes hit the Calaveras Reservoir in California on Tuesday in magnitudes ranging from 1.3 to 3.3, though there were no reports of damage or injuries. Twin quakes also occurred in the same area on Sunday, and two shallow temblors were reported a month before.
US exports of petroleum products rose slightly by 48,000 barrels per day from the first half of 2019 to 5.4 million bpd in the first six months of 2020, according to the Energy Information Administration. Stronger demand for propane and other hydrocarbon gas liquids drove the increase, while exports of gasoline, distillate fuel oil and jet fuel declined.
- Page 1