The natural gas market is expected to remain oversupplied in the next few years, prompting companies like Chevron and ExxonMobil to write down assets and scale back drilling activity, with gas rig deployments across the nation down to 134, from 184 in 2018. Several factors are exacerbating the glut, including mounting opposition to gas pipelines, increased competition from renewables and surging production in countries like Qatar and Russia.
A revised environmental statement from the Minnesota commerce department found no oil spill risks to Lake Superior with the replacement of the Line 3 pipeline, according to Canada's Enbridge. The Minnesota Public Utilities Commission requested the new report after a court deemed the previous environmental assessment inadequate.
US crude stockpiles added 800,000 barrels last week, despite analyst forecasts for a 2.8-million-barrel decline, the Energy Information Administration reported. Gasoline and distillate supplies increased by 5.4 million and 4.1 million barrels, respectively.
A new report by the Global Gas and Oil Network and Oil Change International advocacy groups estimates that the US could produce over 24 billion barrels of oil equivalent over the next five years, or roughly 13.2 million boe/d, overtaking every other country. The Permian Basin will drive the growth, accounting for 40% of new US oil and gas supplies in the next three decades.
A Bureau of Land Management oil and natural gas lease sale in the National Petroleum Reserve of Alaska generated more than $11 million in total high bids for roughly one million acres, the best results in 13 years. The lease sale was dominated by a new player, North Slope Exploration, which won 85 of the 92 tracts available.
Houston's Talos Energy has spent $640 million to acquire oil and natural gas assets in the Gulf of Mexico from private equity-backed companies ILX Holdings, Venari Resources and Castex Energy. The deals comprise exploration prospects as well as assets producing 19,000 barrels of oil equivalent per day.
Devon Energy and Dow have agreed to jointly develop a large portion of Devon's oil and natural gas properties in Oklahoma's STACK shale play. Under the deal, Dow will contribute $100 million to the joint venture over the next four years in exchange for a 50% working interest in 133 undrilled locations.
Shale pioneer Harold Hamm is stepping down from his CEO role at Continental Resources, a company he founded, and will be replaced by board member William Berry, effective January 1. However, Hamm will stay with the company as executive chairman and will work with the new CEO to "help the company cultivate new strategic opportunities."
Antero Resources, West Virginia's top natural gas producer, is looking to divest between $750 million and $1 billion worth of shale assets in the Appalachian Basin in 2020 to further its debt-reduction efforts. Antero's Appalachian holdings cover 584,000 net acres, with production of 3.4 billion cubic feet of natural gas per day.
Speakers at a panel discussion on Tuesday underscored the importance of mitigating the negative societal impacts of oil and natural gas production to improve the quality of life in Texas' Permian Basin and transform the region into a place people and families want to stay. "We need to get away from being a transitional workplace," said the Permian Strategic Partnership's Tracee Bentley, who identifies education, affordable housing and access to primary health care as key improvement areas.
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