Facts & Rumors # 549
April 13, 2024
Latest facts and rumors from the Marcellus, Utica, and Permian, Eagle Ford Plays
EOG Looking to Establish OH Headquarters. Thanks, MDN. It appears that EOG Resources, with headquarters in Houston, Texas, is about to establish a regional headquarters/operation in Malvern (Carroll County), Ohio. We say “appears” because we have strong evidence, but we don’t (yet) have confirmation. EOG Resources, one of the largest oil and gas drillers in the U.S. (with international operations in Trinidad and China), owns a huge 430,000+ acres of leases in the Ohio Utica. EOG calls its position the “Ohio Utica combo play” and now considers it one of the company’s “premium plays.” EOG concentrates on oil drilling in the Utica. It makes sense the company would establish a regional office in the Utica near where it drills.
This is a big deal!!!
Massive Oil Export Terminal Approved. Biden admin issues license for massive oil export terminal. E&E News. The Biden administration has given a final green light for a massive oil export terminal to be built off the Texas coast and send U.S. crude to Asia and Europe. Enterprise Products Partners announced Tuesday that it had received a final license for the Sea Port Oil Terminal, or SPOT, from the Department of Transportation. The license lets Enterprise build a deepwater oil export facility off the coast of Freeport, Texas, that can load 2 million barrels of crude oil onto ships daily. The license issuance comes just days after a federal appellate court upheld the Biden administration’s argument that the port would be in the national interest, in a blow to environmental groups and climate activists who had tried to reverse its approval.
NatGas Below Zero in TX. Oil rally is driving Texas gas prices below zero. Bloomberg. There’s so much natural gas flowing from Texas wells that producers are paying customers to take it off their hands. They can blame oil prices. With crude hovering near a six-month high, the companies extracting it are tapping a stash of wells they drilled but hadn’t completed. More oil at current prices means more cash. But one hitch is that those wells also produce gas, and right now the US gas market is glutted — thanks to an unseasonably warm winter that crippled demand. Stockpiles are nearly 40% above the five-year average. Pipelines are jammed.
AI Can Prevent O&G Cyberattacks. How AI can prevent cyberattacks in the oil and gas industry. Oilman Magazine. Cyberattacks in the oil and gas industry are increasing over the past few years. The rise in ransomware attacks is about 150% in the past year! There have been 35 major and minor cyberattacks in the last five years. According to a Consegic Business Intelligence report, the oilfield services market will grow whopping in the upcoming decade. This also marks the growth of AI-integrated software and applications in the Oil and Gas Industry. AI is an evolving technology, and it is becoming stronger every day. AI can help us automate tasks that take humans a lot of time. Using AI in Oilfield Services is a benchmark for other technologies, too!
$200 Billion Was Not Enough. $200 billion of M&A wasn’t enough in U.S. oil patch. Bloomberg. Even after a record $200 billion dealmaking frenzy last year, US oil and gas producers haven’t consolidated nearly enough. On a-per-barrel basis, there are still too many companies, too many chief executives, and too many drilling rigs wooing a limited pool of available capital. The solution is simple: more M&A.
NatGas Bottom. An early ‘Christmas gift’ from OPEC could spark a record year for U.S. shale producers, oil expert Tom Kloza says. CNBC. The analyst who accurately called oil’s bottom in in 2015 sees a boom for U.S. shale producers. Tom Kloza, who runs the Oil Price Information Service, is crediting OPEC for his optimistic 2018 forecast. “OPEC basically gave a Christmas gift to U.S. shale producers,” the company’s global head of energy analysis said this week on CNBC’s “Futures Now.”
Oil Output Up. U.S. EIA raises oil output, price forecasts for 2024. Reuters. U.S. crude oil output is set to grow slightly more than earlier estimates for this year and next, the U.S. Energy Information Administration said on Tuesday, while also hiking its global and domestic oil price forecasts. U.S. crude production will rise by around 280,000 barrels per day (bpd) this year to 13.21 million bpd, and by 510,000 bpd to 13.72 million bpd in 2025, the EIA forecast.
OH May Open 40,000 Acres. Ohio considers opening 40,000 acres in Wayne National Forest to fracking. Mahoning Matters. Ohio’s Bureau of Land Management is seeking public comments – and will answer questions in virtual sessions on a draft environmental assessment about the impacts of opening up 40,000 acres of Wayne National Forest to oil and gas leasing. The lands are located primarily in Monroe, Noble and Washington counties. Environmental advocates – like Roxanne Groff, a member of the Athens County’s Future Action Network – said they don’t believe the assessment fully captures the widespread loss of habitat or recreational opportunities fracking on public lands would unleash.
TX Top 10 Producing Counties. RRC reveals Texas top 10 crude oil producing counties. Rigzone. In a release posted on its site recently, the Texas Railroad Commission (RRC) revealed the top 10 crude oil producing counties in Texas, ranked by preliminary production, for January 2024. Midland ranked first, with 16.72 million barrels, followed by Martin, with 16.32 million barrels, Upton, with 7.76 million barrels, Loving, with 5.92 million barrels, and Howard, with 5.86 million barrels, the release showed. Karnes ranked sixth, with 5.48 million barrels, Reeves ranked seventh, with 4.33 million barrels, Reagan was eighth, with 4.19 million barrels, Andrews was ninth, with 3.79 million barrels, and Glasscock rounded out the top 10, with 3.76 million barrels, the release revealed.
PA Permits April 1, to April 11, 2024
County Township E&P Companies
1. Allegheny Frazer Range
2. Susquehanna Harford Coterra
3. Susquehanna Harford Coterra
4. Susquehanna Harford Coterra
5. Tioga Sullivan Repsol
6. Washington Blaine Range
7. Westmoreland Bell CNX
8. Westmoreland Bell CNX
OH Permits March 24, to March 30, 2024
County Township E&P Companies
1. No New Permits
WV Permits April 1, to April 5, 2024
1. Kanawha Columbia Energy
2. Kanawha Columbia Energy
3. Marshall EQT
4. Marshall EQT
5. Marshall EQT
6. Marshall EQT
7. Marshall EQT
8. Marshall EQT
9. Marshall EQT
10. Marshall EQT
11. Marshall EQT
12. Marshall EQT
