Facts & Rumors # 564
August 17, 2024
New Technology Could Yield Billions of Barrels. New drilling technology to put billions of barrels of oil in reach, analysts say. Reuters. An oil production breakthrough that producers say can safely tap ultra-high-pressure fields could put up to 5 billion barrels of previously inaccessible crude into production, analysts said. Chevron on Monday disclosed it had pumped first oil from a field at 20,000 pounds per square inch pressures, a third greater than any prior well. Its $5.7 billion Anchor project employs specially designed equipment from NOV (NOV.N), Dril-Quip (DRQ.N), and drill ships from Transocean (RIGN.S).
API Polling on Swing States. WASHINGTON, August 15, 2024 – The American Petroleum Institute (API) today released new battleground state polling conducted by Morning Consult demonstrating widespread support for policies that encourage domestic oil and natural gas production and limit reliance on foreign sources. The poll shows inflation remains a top concern for voters in Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania and Wisconsin, and an overwhelming majority oppose vehicle mandates. As Congress continues to debate bipartisan permitting reform legislation, voters in battleground states expressed strong support for reforms to streamline the approval process for energy infrastructure projects.
More Crude with Fewer Rigs. U.S. shale companies produce more crude using fewer rigs. Reuters. Greater operating efficiencies in the top U.S. shale patch are squeezing out more oil without higher spending, according to the latest output numbers, which will boost global oil market supplies as OPEC also plans to unwind its output cuts later in the year. Producers are extending their wells to as much as three miles, squeezing more wells onto a single drilling pad and fracking several wells at once, boosting production, according to industry experts and company executives on recent earnings calls.
Another Pumping Record. America’s resilient oil drillers pump out another record. Forbes. In case you missed it, the U.S. Energy Information Administration (EIA) reported Thursday that domestic oil and gas producers set another new record high in oil production during the week ended August 4. U.S. producers pumped out an amazing 13.4 million barrels per day (bpd) for the week, an increase of 800,000 bpd from the same week a year ago. This latest record represents the highest level of oil ever produced by any nation on earth.
Cuts in Production Eating in Glut. Curtailments eat into natural-gas glut. WSJ. The U.S. drew down natural-gas stockpiles last week for the first time during the summer since 2016, according to the Energy Information Administration, taking a big bite out of the surplus that has weighed on prices for the power-generation fuel. An abundance of gas left over from winter has withstood some of the hottest weather on record and weighed on prices, prompting big drillers like Chesapeake Energy and Coterra Energy to curtail output.
2024 U.S. Oil Imports from Middle East Hit New Record Low. Forbes. The percentage of U.S. oil imports from the Middle East is teetering with falling below double digits for the first time in more than three decades, according to my analysis of the latest U.S. Census Bureau data.
Houston Crude Exporter. Houston poised to become crude oil export leader as U.S. production grows. Chron. We are living in a peak period of American crude oil production, and much of the attention is focused on the Permian Basin in West Texas. There, about 6 million barrels of oil per day, or nearly half of all U.S. crude production, are extracted and sent through pipelines for exporting.
Marathon Oil Investor Sues to Block ConocoPhillips Acquisition. Marathon Oil investor sues to block ConocoPhillips acquisition. Bloomberg. A Marathon Oil Corp. shareholder sued to block its proposed acquisition by ConocoPhillips, claiming the $17 billion deal “significant undervalues” the target company. In a lawsuit filed Monday in New York state court, Martin Siegel says the Conoco deal could deprive Marathon investors of more than $6 billion in value. He further alleges Marathon; its directors and financial adviser Morgan Stanley misrepresented the deal in a proxy statement recommending shareholders back it.
EQT to Drill in Keen Wildlife Area in OH. Thanks, MDN. The Ohio Oil and Gas Land Management Commission (OGLMC) continues to do its job. Yesterday, the group held a meeting and awarded five contracts for drilling and fracking UNDER (not on) several state-owned lands, including a contract with EOG Resources to drill under 85 acres in Keen Wildlife Area in Washington Township, Harrison County, for $211,650 ($2,500/acre). Also of interest at yesterday’s meeting was that 40 parcels of land in Salt Fork State Park and Salt Fork Wildlife Area were removed from the committee’s agenda. Apparently, the nominating company withdrew its application for those tracts.
6 Million Barrels to SPR. U.S. seeks 6 million barrels of oil for Strategic Petroleum Reserve. Reuters. The U.S. is seeking to buy another 6 million barrels of oil from energy companies to help replenish the Strategic Petroleum Reserve (SPR), the Department of Energy said on Monday. The solicitation of oil for the SPR is the first for delivery into the facility’s Bryan Mound, Texas site since it underwent maintenance work and repairs, the department said.
Encino Gives $105,000 to OH Charities. Thanks, MDN. Encino Energy, which is Ohio’s No. 1 oil producer, and its vendors, recently announced over $105,000 in donations from the 2024 Encino Vendor Charity Classic. This year’s gathering was a two-day event consisting of a clay shoot, golf outing, and awards reception. Vendors came together to sponsor the event at various levels, and proceeds went directly to local nonprofits that impact Encino’s operational area. The $105,000 in donations was split evenly between five nonprofit organizations.
PA Permits August 5, to August 15, 2024
County Township E&P Companies
1. Beaver Independence Range
2. Beaver Independence Range
3. Greene Franklin Rice
4. Greene Gilmore EQT
5. Greene Gilmore EQT
6. Greene Gilmore EQT
7. Greene Gilmore EQT
8. Greene Gilmore EQT
9. Greene Gilmore EQT
10. Greene Gilmore EQT
11. Greene Gilmore EQT
12. Greene Gilmore EQT
13. Greene Whitely EQT
14. Washington Union EQT
15. Washington Union EQT
16. Washington Union EQT
17. Washington Union EQT
18. Washington Union EQT
19. Washington Union EQT
20. Washington Union EQT
21. Washington Union EQT
OH Permits August 4, to August 10 2024
County Township E&P Companies
1. Jefferson Cross Creek Ascent
2. Jefferson Cross Creek Ascent
3. Jefferson Cross Creek Ascent
WV Permits August 5, to August 9 2024
1. Marion EQT
2. Marion EQT
3. Marion EQT
4. Marion EQT
5. Marion EQT
6. Marion EQT
7. Marion EQT
8. Marion EQT
9. Ohio SWN
10. Tyler Tribune Resources
11. Tyler Tribune Resources
12. Tyler Tribune Resources
13. Tyler Tribune Resources
14. Tyler Tribune Resources
