The Energy Information Administration projects continued growth in US natural gas production and exports until 2050 in the majority of scenarios described in its Annual Energy Outlook 2020. EIA's reference case sees US dry gas output rising from 34 trillion cubic feet in 2019 to 45 Tcf by 2050 and liquefied natural gas exports nearly tripling from 1.7 Tcf in 2019 to 5.8 Tcf in 2030.
US crude stockpiles edged up by 4.2 million barrels last week, but the increase was offset by a 2.7-million-barrel drop in gasoline supplies and a 2.6-million-barrel plunge in distillate inventories, the American Petroleum Institute reported.
North American oil and natural gas producers are facing more than $85 billion of debt reaching maturity in the next four years, with 62% of that amount held by junk-rated firms that have fewer opportunities to refinance, according to Moody's Investors Service. Debt refinancing will be particularly challenging for US natural gas drillers as gas prices remain subdued, Moody's said.
The Internal Revenue Service on Wednesday published long-awaited guidance on how companies can access tax credits for carbon capture projects and expects to issue additional guidance on the underground storage of carbon "in the near future." Work on more than 20 carbon capture projects had been halted, awaiting the IRS rules.
The Bureau of Land Management has finalized six draft supplemental environmental impact statements for the management of sage grouse habitat on public lands in seven states as part of a renewed push to reduce protections for the bird to allow for more drilling and other activities. The draft reviews address issues identified in an October 2019 court order that placed a preliminary injunction on the implementation of the revised sage grouse plans.
Permian Basin producers Diamondback Energy, Concho Resources and Devon Energy saw their shares surge Wednesday after reporting better-than-expected fourth-quarter earnings and significantly raising dividends. "The dividend fireworks blaze a bright light in a dark sky for oil and gas stocks," said Mizuho Securities analyst Paul Sankey, calling the development "the first step in the right direction."
EP Energy, Endeavor Energy Resources, Surge Operating and Jagged Peak Energy are the companies with the highest flaring intensity in Texas, while Pioneer Natural Resources, EOG Resources, ConocoPhillips and Chesapeake Energy had the lowest flaring scores, according to a report. Texas companies flared about 650 thousand cubic feet in 2018, but Ryan Sitton, author of the report and commissioner at the Railroad Commission of Texas, says the volume is below historical levels and lower than other oil-producing regions such as North Dakota, Iran, Russia and Iraq.
The volume of wastewater generated by oil and natural gas wells has climbed 15% from 2012 levels to 1.02 trillion gallons in 2017, according to energy and water expert John Veil. However, the rate of increase in wastewater volumes was slower than oil and natural gas production growth because unconventional wells yield less water than conventional wells, Veil notes.
Kinder Morgan believes a third natural gas pipeline will be needed in the Permian Basin, but it will not move forward with its proposed Permian Pass project until it has secured enough customers, CEO Steve Kean said. "While we were in deep discussions mid-last year, that has cooled a bit as producers re-examine their capital commitments," Kean added.
Brazil's oil and natural gas production reached record high levels in January, with the Lula pre-salt field providing a third of the oil, the country's oil regulator said Wednesday. Oil production increased by 20.4% over the same month a year earlier, while gas output rose 22% over January 2019, the regulator said.
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