Industry News
Oil & Gas
Top stories summarized by our editors
1/15/2021

The recent oil price rally is encouraging US shale producers to step up hedging for future production, with an indicator of hedging activity hitting a five-month high in December, according to the Commodity Futures Trading Commission. "Producers locked in a certain amount of wells at a certain price and hedging at $50 makes you look like a rockstar. This year will be about free cash flow," one shale executive said.

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Reuters
1/15/2021

Chevron has invested an undisclosed amount in Blue Planet Systems, a startup that develops carbon capture technology for converting flue gas from refineries and other industrial facilities into building materials. The two companies also signed a letter of intent to work together on pilot projects and the commercialization of the technology.

1/15/2021

Tellurian is planning to begin construction on the $16.8 billion Driftwood LNG export plant in Louisiana this summer, said co-founder and executive chairman Charif Souki, noting that there's been a substantial increase in customer interest in the past month. Driftwood LNG will have a production capacity of 18.1 million short tons per year when the first phase of the project is completed in 2025.

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Reuters
1/15/2021

The oil rally will encourage US shale operators to pump more oil in the second half of the year, according to OPEC, which expects US shale production to jump by 70,000 barrels per day this year to 7.37 million bpd. Meanwhile, global oil demand is seen increasing by 5.90 million bpd to 95.91 million bpd.

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Reuters
1/15/2021

The Bureau of Land Management's final oil and natural gas lease auction under the Trump administration took place on Thursday, generating about $4.1 million in proceeds from the sale of 37 parcels covering roughly 6,848 acres of federal land in New Mexico, Texas, Kansas and Oklahoma. Most of the land made available was in New Mexico's Eddy and Lea counties.

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Trump
1/15/2021

The Trump administration is expected to publish today in the Federal Register a rule that would change how royalty payments for energy production on public lands are calculated by using an average weekly benchmark price and allowing higher deductions for transportation and processing costs. The rulemaking was initiated following a 2019 letter from the American Petroleum Institute.

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The Hill
1/15/2021

Halliburton says it's using an electric grid-powered hydraulic fracturing system at several Permian Basin sites for Cimarex Energy. The system, which began operating in November and is an industry first, has low emissions, saves money and is reliable, Halliburton says.

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Rigzone
1/15/2021

Philippine President Rodrigo Duterte has put a stop to nickel mining on Tumbagan Island in the Tawi-Tawi province because the ore deposits there are nearly depleted, Cabinet Secretary Karlo Nograles said. Authorities will increase rehabilitation efforts on the island by planting more trees, Nograles said.

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Reuters
1/15/2021

Blocks of the Earth's crust known as cratons formed the base of continents as a result of melting and stretching up to 3 billion years ago during the Archean era, according to a study. Researchers, who used numerical models to simulate conditions on Earth at that time, say the lithospheric mantle strengthened as parts of it melted and moved up in a continuous process.

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Eos
1/14/2021

A US judge on Wednesday approved Chesapeake Energy's Chapter 11 reorganization plan, paving the way for the oil and natural gas producer to exit bankruptcy protection with around $3 billion in new financing, $7 billion less debt and a $1.7 billion reduction in gas processing and pipeline costs. Chesapeake's market value has risen to $5.13 billion in wake of the oil price rally of the past few months.

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Reuters