Forecast ///

UK Oil and Gas urges cooperation across UKCS

Ardent co-operation across the UK oil and gas industry which draws on the experience of others is important in helping to contain inflationary pressures and achieve a sustainable future for the UK Continental Shelf (UKCS), a London audience heard on May 19, at an Oil & Gas UK briefing, sponsored by Costain Upstream Ltd and Herbert Smith Freehills.

Oil trader Andurand sees U.S., OPEC supply capping prices

Oil supply from both OPEC and U.S. shale drillers is set to expand later this year, preventing further gains in prices, according to hedge fund Manager, Pierre Andurand.

Goldman sees oil dropping as price rally makes crude too costly

Oil prices are set to slide as their rally to the highest level this year threatens to prolong a global glut, according to Goldman Sachs Group Inc.

U.S. becoming net energy exporter for first time since 1950s

NEW YORK (Bloomberg) -- The U.S. government said for the first time that the nation will become a net energy exporter within 15 years as the shale boom bolsters crude oil production.

Supermajors' Q1 earnings to be the weakest in recent memory: Douglas-Westwood

Despite major cost reduction measures, first-quarter earnings for supermajors are expected to be the weakest in recent memory, according to Douglas-Westwood's DW Monday.

Iran moves closer to restoring oil exports after nuclear accord

Iran’s accord with world powers brings the OPEC member a step closer to restoring oil production that was cut by sanctions while leaving unresolved when it will happen.

Mexico cuts production and reserve forecasts after prices slid

Mexico’s National Hydrocarbons Commission lowered the country’s estimates for proven oil reserves and state-run Petroleos Mexicanos cut its 2015 production forecast after crude prices collapsed and its budget was reduced.

Oil trades near $50 as supply expansion in U.S. seen slowing

Oil traded near $50/bbl after the U.S. government forecast that the nation’s supply growth will slow next month, prompting speculation a global glut will ease.

Brent crude falls on Chinese data; WTI gains on slower supply gain

Oil fell in London for a fourth day after China reduced crude imports. Futures advanced in New York after an industry survey was said to report a slowdown in crude stockpile increases at Cushing, Oklahoma.

Exxon says output growth on track even as crude price drops

Exxon Mobil Corp. is sticking to production targets established when oil traded for more than $100/bbl, signaling confidence that demand for crude-based fuels will continue to expand.

Murkowski, Heitkamp lead coalition urging oil exports to Mexico

U.S. Sen. Lisa Murkowski, R-Alaska, Chairman of the Senate Energy and Natural Resources committee, and Sen. Heidi Heitkamp, D-N.D., have joined with 19 of their Senate colleagues on a bipartisan letter to U.S. Commerce Secretary Penny Pritzker encouraging the administration to authorize oil exports to Mexico under the same conditions established for exports to Canada.

EOG signals plans to reduce shale production growth

The biggest, fastest-growing oil producer in the U.S. said it plans to halt output growth this year, delivering a signal that shale companies are beginning to do what it takes to reduce oversupplies.

Chevron settles with backer of fraudulent Ecuador litigation

Chevron has reached a settlement agreement with James Russell DeLeon, the principal funder of the fraudulent lawsuit against Chevron in Ecuador.

Offshore maritime sector must watch costs and risk exposure, says Moore Stephens

International accountant and shipping adviser Moore Stephens has said that companies in the offshore maritime sector need to keep a close watch on costs and manage their exposure to risk in the wake of the dramatic fall in oil prices.

WPX Energy slashes spending, cuts rigs

WPX Energy has announced a 2015 capital investment plan of approximately $725 million (midpoint), in line with the company’s projected operating cash flow.

Low oil prices put the brakes on the global E&P train

Pramod Kulkarni, Kurt Abraham, Roger Jordan, Steven McGinn, World Oil

An oversupplied market spells a difficult year ahead for operators, although less so for activity outside North America.

U.S. gas well numbers rise despite low prices

Kurt Abraham, World Oil

The number of producing gas wells in the U.S. rose significantly over the course of the last year, despite prices that seldom crept above $4/MBtu. In 2013, there were 485,000 active producing gas wells in the U.S. In 2014, that number rose to 514,782.

Active U.S. oil wells pass the 600,000 mark

Kurt Abraham, World Oil

The number of producing oil wells in the U.S. rose 3.5% in 2014, to an estimated 600,679. This figure is in line with the 2012-2013 improvement of 3.5%.

Oil, gas both reach production highs, but falling prices will drag output down

Kurt Abraham, World Oil

Crude oil and condensate. U.S. crude oil production surged broadly across different regions in 2014, particularly in the Bakken and Eagle Ford shale plays of North Dakota and Texas, respectively. Crude oil prices spent much of the summer of 2014 hovering above $100/bbl, which kept operators’ gaze firmly fixed on petroleum liquids. As prices declined modestly into the fall, production kept up a blistering pace, surpassing 9 MMbpd in October.

Rig counts rose in early 2014, but falling prices bring uncertainty

Kurt Abraham, World Oil

While the ongoing oil-price decline is bound to affect the U.S. rotary rig count in the coming year, 2014 saw a significant increase over the previous year—especially in the regions where one might expect that to happen. The average rig count for 2014 was above 1,860 rigs running, a 6% increase year-over-year, or about 100 rigs higher. The Permian basin of West Texas and New Mexico experienced the greatest increase in activity, with the rig count rising 16% to 17% on average, or about a 60-rig improvement. Activity in the Eagle Ford shale region of south-central Texas shot up about 35%, or an average of 16 additional rigs running for the year.