As the Permian Basin prepares to unleash a second wave of the shale revolution, operators will need to work together and exploit the power of data analytics to get the most out of their assets, according to CrownQuest Operating data scientist and geophysicist Lewis Matthews. Matthews says enhanced oil recovery efforts could increase recovery factors in the Permian Basin from about 12% to roughly 50%.
Oil industry executives met with President Donald Trump this week at a White House event organized by the American Petroleum Institute to voice their concerns over Trump's proposed steel and aluminum tariffs and to urge the president to preserve NAFTA's investment protections provisions. "API executives highlighted a host of the industry's priority issues, including the importance of trade policies that recognize the integrated nature of North American and global markets," API Director of Media Relations Eric Wohlschlegel said.
The International Energy Agency forecast that global oil demand would jump by 1.5 million barrels per day to hit 99.3 million barrels per day this year, enough to maintain market balance in the wake of an anticipated 1.5-million-barrel-per-day increase in US crude production. "The market rebalancing is clearly moving ahead with ... supply and demand becoming more closely aligned," the IEA said in its monthly report.
Pioneer Natural Resources has reached an agreement to sell 21,900 net acres with production of 1,800 barrels of oil equivalent per day in the Eagle Ford Shale to Australia's Sundance Energy for $222 million. The sale is part of Pioneer's plan to divest its entire position in the Eagle Ford as it transitions to being a pure-play Permian Basin producer.
EV Energy Partners, the upstream oil and natural gas business of Houston energy investment firm EnerVest, will file for bankruptcy protection as part of a reorganization plan that will allow it to reduce its debt. "We believe that this provides the best path forward for our company to reduce leverage, maintain access to liquidity and maximize value for all of our stakeholders," said EV Energy President and CEO Michael Mercer.
Oil and natural gas pipeline companies organized as master limited partnerships will no longer benefit from an income-tax allowance that permitted them to recover income-tax costs twice, the Federal Energy Regulatory Commission ruled Thursday. Shares of several companies plunged in the wake of the FERC decision, which essentially threatens the survival of many MLPs.
Aker BP plans to start full digital operations at its Ivar Aasen field in the North Sea off the coast of Norway on June 1. The company will use virtual reality techniques, platform sensors, interactive 3D models, artificial intelligence and cloud-based data that can be accessed on tablets and mobile phones.
Oil and natural gas exploration and production in the North Sea is undergoing a recovery, although companies are taking a cautious approach, analysts say. Companies have reduced operational costs, UK production is expected to increase to its highest level since 2010, two major fields are due to start up this year and significant exploration wells are planned at West of Shetland.
Cyprus on Thursday said Eni will continue natural gas exploration in six areas off the island's coast regardless of opposition from Turkey, which says it will block drilling there without the involvement of Turkish Cypriots. Italy-based Eni has contracts with Cyprus, which contends it has a sovereign right to look for and produce hydrocarbons.
Norway-based Statoil wants to drill three wells in the Barents Sea off Norway's coast during the second and third quarters of the year. The oil and natural gas company has applied for permits to drill wells at the Korpfjell Deep and Gjokaasen prospects near the maritime border with Russia and at the Intrepid Eagle prospect.
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