Oil production gains of 61,000 barrels per day in North Dakota and 315,000 bpd in the Gulf of Mexico pushed US crude oil production to 10.86 million bpd in September, an increase of 286,000 bpd from August. However, gross natural gas production in the contiguous US slid 0.9% to 99.9 billion cubic feet per day in September, the first decline since May.
Improved netbacks, coupled with strong Asian demand for US liquefied natural gas and no cancelled cargos, could push US LNG feed gas demand to a fresh record around 11 billion cubic feet per day in December, according to S&P Global Platts Analytics. The market still faces some risks from the spike in coronavirus cases and needs sustained higher prices to encourage new project sanctioning.
Meg Gentle will resign as president and CEO of Tellurian and will be replaced by Octavio Simoes, previously executive vice president of LNG Marketing and Business Development. Tellurian did not give a reason for Gentle's departure.
ExxonMobil on Monday said it would write down the value of some of its natural gas properties in the US and Argentina by $17 billion to $20 billion, its biggest impairment ever, and reduced its capital spending target through 2025 to $25 billion per year. "Continued emphasis on high-grading the asset base -- through exploration, divestment and prioritization of advantaged development opportunities -- will improve earnings power and cash generation, and rebuild balance sheet capacity," said CEO Darren Woods.
The Senate on Monday confirmed the nominations of Democrat Allison Clements and Republican Mark Christie to fill two vacant seats on the Federal Energy Regulatory Commission, restoring the commission to a full quorum. James Danly currently serves as FERC chairman, but President-elect Joe Biden may hand the role to one of the Democratic commissioners.
The prospect of a 45% jump in natural gas prices next year is encouraging US shale producers, including EOG Resources, Apache Corp and Continental Resources, to shift their resources to natural gas projects. The US gas rig count has risen 13% since July to 77 and drillers have been hedging more of their projected gas volumes.
The coronavirus pandemic has taken a heavy toll on Colorado's oil and natural gas industry, triggering a downturn that has led to steep declines in production, employment and rig counts. The situation has been exacerbated by an uncertain regulatory environment at the state level and the torrent of oil supplies unleashed by countries like Russia and Saudi Arabia, said Dan Haley, president and CEO of the Colorado Oil and Gas Association, who added, "It has been historic to see all of these factors sort of converging at one time and one year."
Mobile, modular trailers for capturing stranded gas, automated secondary air control systems and vapor recovery systems were among the technologies exhibited for the Texas Methane and Flaring Coalition during a virtual technology showcase. "Members of the TMFC are consistently looking at the technology space to focus on companies that can utilize varying innovations in areas like gas capture, vapor recovery, mobile gas processing and leak detection," said Ben Shepperd, president of the Permian Basin Petroleum Association, which is a member of the coalition.
Employment in Texas' upstream oil and natural gas sector increased by 600 jobs in October to 171,900 jobs, marking the second consecutive month of gains, the Texas Oil and Gas Association reported, citing figures from the Texas Workforce Commission. "Many companies are still working through the adjustments necessary to address the contracted economy due to COVID-19, yet this second month of positive job growth numbers are a good reminder of the essential role of oil and natural gas in our everyday lives," said TXOGA President Todd Staples.
New Mexico will start requiring oil and natural gas producers to file reports that detail the volume and quality of water they use in drilling operations. The new requirement aims to address a lack of data on industry water use and determine whether drilling operations are threatening the state's limited fresh water supplies, said Adrienne Sandoval, director of the state's Oil Conservation Division.
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