Industry Trends ///

Saudi crude price cuts for October signal wavering oil demand

Saudi Arabia usually sets the tone for pricing decisions by other Middle Eastern suppliers, including Iraq and the United Arab Emirates, the second- and third-largest producers in the Organization of Petroleum Exporting Countries.

Liberty Oilfield Services puts Schlumberger tech in its yards, Halliburton in its crosshairs

“Customer demand has told us to grow at this pace, and then deals like this come to us,” Liberty CEO Chris Wright said in an interview after the deal was announced on Tuesday. “Our goal with this acquisition is to keep getting better, but to the extent we succeed at that, it probably leads to us being the leader sometime down the road.”

Aramco reviewing multi-billion Texas LNG terminal investment plan

Aramco is reviewing a decision last year to buy 25% of Sempra Energy’s liquefied natural gas terminal in Texas -- which would cost several billion dollars -- and has already taken some staff off the project, according to someone familiar with the matter, who asked not to be identified because they aren’t authorized to speak to the media.

Saudis send a message to the oil market with reduced U.S. deliveries

The kingdom last month loaded about 5.6 million barrels a day on to tankers, a small increase from July, vessel-tracking information compiled by Bloomberg show. Within that, an ever-smaller share went to the U.S., and import data show that deliveries in August were likely the lowest in decades.

U.S. crude stockpiles fall for sixth straight week, sending oil prices higher

There was a positive technical signal for crude as West Texas Intermediate’s 50-day moving average rose above the 200-day marker for the first time in more than six months, forming a so-called golden cross and indicating that prices could break higher.

Schlumberger’s North American frac exit may signal the end of the U.S. shale boom

After similar exits over the past few years by Baker Hughes and Weatherford International, Halliburton is now the sole global provider of well completions for shale, and even Halliburton has said it’s looking overseas for better growth.

Are oil prices stable enough to support a U.S. shale drilling recovery?

World Oil editors discuss how recent land drilling activity, and the oil price's resilience to external factors suggest that pieces may be coming into place to support the start of a U.S. shale recovery.

Exxon Mobil exits exclusive Dow Jones Industrial Average club as focus shifts to tech firms

The latest reshuffling is testament to the ascent of technology companies, a trend amplified by this year’s Covid 19 lockdowns. While the Dow average is still 4.2% off its February record, the tech-heavy Nasdaq 100 is almost 20% above the pre-pandemic all-time high.

Turkey’s Black Sea find shapes its potential role as an energy producer

“Turkey is a premium gas market, which has never been significant on a global scale. The discovery really reinforces the country’s potential role as an energy producer in the region,” said Ashley Sherman, principal analyst on Caspian and Europe upstream at Wood Mackenzie.

Climbing U.S. rig count lends credence to Halliburton’s recovery projections

Drillers in the Permian basin of West Texas and New Mexico led the rest of the nation in expanding the rig count. With crude stabilizing above $40 a barrel, the total number of active U.S. oil rigs rose by 11 to 183 this week, according to Baker Hughes Co. data released Friday.

China charters 19 tankers for record U.S. crude oil shipment

Chinese crude buyers have chartered about 19 tankers for September to send roughly 37 million barrels of oil to China, according to provisional tanker fixtures. If these proceed as planned, the exports would surpass a record set in May at 35.2 million barrels, according to U.S. Census data compiled by Bloomberg.

API polling in Pennsylvania, Ohio shows strong oil and gas industry support

With the first of two party conventions underway this week, API Pennsylvania released new polling conducted by Morning Consult showing voters value American energy security and affordability and believe it is important for the U.S. not to rely on foreign energy sources.

Democrats cut fossil-fuel promises from party platform in snub to climate activists

In the weeks before the convention, delegates approved a draft of the party platform which included an amendment stating that “Democrats support eliminating tax breaks and subsidies for fossil fuels.” By the time final draft was officially passed on night one of the convention, that language had disappeared.

Valaris, world’s largest offshore rig owner, declares bankruptcy

“The substantial downturn in the energy sector, exacerbated by the Covid-19 pandemic, requires that we take this step to create a stronger company able to adapt to the prolonged contraction in the industry,” Valaris CEO Tom Burke said in a statement.

OPEC+ leaders push to maintain production cuts as oil recovery slows

Saudi Energy Minister Prince Abdulaziz bin Salman and his Russian counterpart Alexander Novak hailed the rebound in oil prices and demand, but repeatedly urged their allies in a video conference on Wednesday not to ease off their output curbs.

High costs, low oil prices increasing financial risks for deepwater drillers

Firms including Transocean, Seadrill and Pacific Drilling are exploring strategic options as they seek to stave off default, leaving more than $30 billion of debt at risk. The industry’s turmoil has sparked the biggest wave of restructurings since 2017, when the effects of the last oil price downturn reverberated through the industry.

China buys millions of barrels of U.S. oil to comply with trade deal

As much as 14 million barrels -- or seven super-class tankers full -- of U.S. oil will be loaded next month for delivery to China, according to estimates by Vortexa Ltd. based on provisional tanker bookings. If all those shipments make the trip that will be more than double the volumes set for August.

OPEC+ tries to balance market share gains with weak oil demand

The coalition of producers led by Saudi Arabia and Russia is restoring some of the vast quantities of crude halted during the depths of the coronavirus crisis. So far the supply boost hasn’t derailed oil’s fragile recovery, which has seen prices climb to a five-month high.

The rise of floating offshore wind energy

Patrick Belenfant, Hélène Butat, Paul-Gaspard de Bovis, Bourbon Subsea Services

To help achieve carbon reduction goals, substantial growth is expected in the floating offshore wind sector. To efficiently harness the renewable resource, a European contractor is taking a leading role by installing powerful floating wind turbines in challenging environments.

Oil auctions in Alaskan refuge set up a potential post-November clash

The Trump administration on Monday authorized a sweeping plan to sell drilling rights and spur oil development in Alaska’s rugged Arctic refuge, setting up a possible auction by the end of 2020 and a political clash if the president loses the November election.