US Gulf of Mexico offshore drillers and refiners along the Gulf Coast are monitoring Tropical Storm Cristobal and bracing for potential impacts to operations. This year's Atlantic hurricane season could see up to 19 named storms, including three to six hurricanes, according to the National Oceanic and Atmospheric Administration.
Rebounding oil prices are encouraging US shale oil producers, including Parsley Energy and EOG Resources, to gradually restore some or all of their shut-in production. However, a lack of access to capital will prevent operators from drilling new wells, shadowing prospects for any production growth in the short- to medium-term, said Ken Boedeker, EOG's executive vice president of exploration and production.
The OOC Oil & Gas Blockchain Consortium, whose members include ExxonMobil, ConocoPhillips and Equinor, has completed a successful pilot that used blockchain tech from Data Gumbo to automate payments for oilfield water management at five Equinor wells in North Dakota's Bakken Shale. The technology helped reduce process workflow to one to seven days from 90 to 120 days, as well as automate validation for 85% of all volume measurements.
The Trump administration is confident OPEC+ oil producers will reaffirm their commitment to reducing oil supply at a meeting on Thursday, a senior official said. OPEC+ sources say Saudi Arabia and Russia are negotiating an extension of the cuts through July or August.
Sen. Martin Heinrich, Rep. Ben Ray Lujan and Rep. Xochitl Torres Small, all Democrats from New Mexico, are asking Congress to provide tribes and states financial aid for plugging abandoned oil and natural gas wells. This would generate jobs for unemployed workers while protecting the environment, the lawmakers say.
Rystad Energy expects US gasoline and diesel demand to drop by 10.5% to 10.1 million barrels per day this year, before recovering to 10.6 million barrels per day in 2021. Meanwhile, US oil demand is seen falling by 11.8% to 18.1 million barrels per day.
ExxonMobil and Qatar Petroleum have asked the Federal Energy Regulatory Commission for permission to boost the capacity of the Golden Pass LNG plant in Texas from 17.2 million short tons per year to 19.9 million short tons per year. Golden Pass said the expansion would not result in additional construction or environmental impacts because it would be achieved through "production efficiencies."
US independent oil producers, including Diamondback Energy and SM Energy, are prioritizing debt management, but adverse market conditions may jeopardize their efforts to secure capital and improve their financial standing.
HollyFrontier plans to spend between $125 million and $175 million to convert its oil refinery in Cheyenne, Wyo., to produce roughly 90 million gallons per year of renewable diesel by early 2022, citing plummeting processing margins and "uncompetitive" maintenance costs. "Demand for renewable diesel, as well as other lower carbon fuels, is growing and taking market share based on both consumer preferences and support from substantial federal and state government incentive programs," said HollyFrontier CEO Mike Jennings.
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