Drilling ///

Shale companies receive more than $2.4 billion in pandemic assistance

The shale industry is getting at least $2.4 billion in loans from the U.S. government’s Paycheck Protection Program aimed at helping businesses that are struggling with the impact of the coronavirus pandemic.

Texas issued nearly 69% fewer drilling permits in June 2020 than in year prior

The Railroad Commission of Texas issued a total of 312 original drilling permits in June 2020 compared to 1,001 in June 2019. The June 2020 total includes 262 permits to drill new oil or gas wells, three to re-enter plugged well bores and 21 for re-completions of existing well bores.

Neptune Energy confirms hydrocarbon discovery at Dugong well

Neptune Energy and its partners announced the discovery of hydrocarbons at the Dugong well (PL 882) in the Norwegian sector of the North Sea.

Chesapeake joins more than 200 other bankrupt U.S. shale producers

More than 200 North American oil and gas producers, owing over $130 billion in debt, have filed for bankruptcy since the beginning of 2015, according to a May report from law firm Haynes & Boone. This year alone, at least 20 have gone under after oil prices plunged amid the Covid-19 pandemic.

Chesapeake files for Chapter 11 bankruptcy, eliminating $7 billion of debt

Chesapeake Energy Corporation announced that the company has voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas to facilitate a comprehensive balance sheet restructuring.

Are crude production models ignoring rig count and oil price realities?

World Oil editors review the Dallas Fed's recent oil production survey among U.S. operators and service companies, and discover a "split personality" between production estimate and pricing models that could lead to an oil supply shock in 2021.

Recent Dallas Fed survey reveals U.S. producers’ mindset, strategy for moving forward

A recent survey by the Dallas office of the Federal Reserve System reveals a very somber and wary mindset by U.S. producers toward the upstream oil and gas (O&G) market. And that attitude is reflected in their plans for coping with the Covid-19-affected O&G market.

Oxy plans junk bond sale, multi-billion writedown to help tackle debt

Occidental has been under pressure ever since outbidding Chevron to win the purchase of Anadarko Petroleum last year. The deal saddled Oxy with some $40 billion of debt that was looking hard to pay off even before Covid-19 reduced global oil demand.

U.S. drillers broke oil production records in 2019, despite lowest rig count since 1975

According to EIA research, increases in drilling efficiency pushed U.S. crude oil and natural gas production to establish new records of 12.2 MMbpd and 111.5 Bcfd, respectively, in 2019.

Shale oil production may take years to recover, despite a short-term uptick

Looking out 18 months, U.S. output will still be around 16% below its peak in February, according to an average of surveys from the IEA, Genscape, Enervus, Rystad and IHS Markit. It will probably be at least 2023 before the U.S. again hits its record close to 13 million barrels a day.

Deloitte reports continued strain for shale producers, even as oil prices rise

Almost a third of U.S. shale producers are technically insolvent with crude at $35 a barrel, according to Deloitte LLP, highlighting the industry’s acute financial strain even as oil prices rebound from a record low earlier this year.

The shale drilling shutdown continues for its 14th week

Drillers idled 10 oil rigs in onshore U.S. fields this week, bringing the total to 189, according to data released Friday by Baker Hughes Co. Despite this week’s rise in crude prices to a three-month high around $40 a barrel, they still are more than 35% below the January high.

Ovintiv cuts jobs across North America as oil drilling slows

The layoffs are coming roughly equally from the company’s offices in Calgary, Denver and The Woodlands, Texas, as well as from field staff, said Cindy Hassler, a spokeswoman for Ovintiv. Hassler declined to immediately provide a number of how many jobs were cut.

Schlumberger strikes wireline tech license agreement with China’s CNPC Logging

The collaboration agreement will provide CNPC Logging with a license to manufacture fit-for-basin wireline technology. As part of the agreement, Schlumberger will support CNPC Logging on the manufacturing and sustaining activities for ThruBit through-the-bit logging technology at the CNPC Logging technology center in Xi’an, Shaanxi province.

Neodrill and Baker Hughes complete industry’s first cut and recover operation in the Norwegian Sea

Neodrill and Baker Hughes announced completion of the world’s first cut and recover operation for Wintershall Dea Norge in the Norwegian Sea. Rig time was reduced by an estimated 12 hours, with work to cut the surface casing moved off the critical path of the rig schedule.

Vallourec’s VAM® SPRINT-SF connection: designed to make your life easy!

As a world leader in premium tubular solutions serving the oil & gas, power generation, and industry applications, Vallourec continues to build new customer experiences through innovative solutions. The new VAM® SPRINT Series is a great example of the Vallourec culture that listens to our customers’ needs and reacts quickly to provide a solution in an ever-changing market environment.

Vallourec team's one-year sprint to market results in VAM® SPRINT-SF, an innovative ultra-high torque connection

Vallourec’s new VAM® SPRINT-SF, the first in a series of semi-premium high torque connections for onshore drilling is a technological breakthrough for the industry. The team’s innovative behind-the-scenes collaboration expedited its journey from concept to market.

Potential offshore discovery off Canada’s eastern coast fuels optimism

Per Canada’s CBC News, a report this week has stoked some optimism in the Newfoundland and Labrador oil and gas sector, with a description of another “potentially commercial discovery” in the Flemish Pass Basin.

Venezuela’s fall leaves world’s richest oil reserves tapped by a single rig

As fields across the nation shut amid a relentless U.S. campaign to cut Venezuela off from global oil markets, the number of rigs drilling for crude fell to just one in May, according to data from Baker Hughes. Another lone rig was drilling for gas.

Chesapeake’s fate marks the end of an era in U.S. shale

As the remnants of shale’s turn-of-the-century heyday turn to dust, it’s unclear who will step into the void.