Industry Trends ///

Oxy CEO opposes carbon tax plans, in contrast to API and rival operators

“A carbon tax would be bad for a lot of the industry, a carbon tax would be bad for the consumers and especially for those consumers who are more disadvantaged from an economic standpoint,” Occidental CEO Vicki Hollub said at a conference hosted by Texas Independent Producers & Royalty Owners Association.

U.S. oilfield service companies added 23,000 jobs in March

The monthly Oilfield Services and Equipment Employment Report, compiled and published by the Energy Workforce & Technology Council, estimates a peak of 102,000 pandemic-related job losses. Since then, the industry has gained back more than 23,000 jobs.

Enbridge seeks Canadian tax credits to fund hydrogen and CO2 capture push

North America’s biggest oil pipeline company, which for years has invested in wind and solar power projects, is also looking at gaining scale and becoming competitive in technologies such as hydrogen production using renewable electricity.

Global LNG demand climbs to year-long highs

Imports jumped 5.8% in March from a year earlier, the biggest increase since March 2020. Demand for the fuel used in heating and power generation had been steadily growing before Covid-19, as nations shift away from coal-fired power over climate concerns.

U.S. Interior chief reviewing “fundamentally broken” oil rights system

One day after the U.S. energy secretary phoned Saudi Arabia on the "importance of affordable and reliable energy for consumers," Interior Secretary Deb Haaland called the domestic fossil fuel industry "fundamentally broken," suggesting that Biden's oil and gas leasing moratorium will be anything but temporary.

Drilling rig count climbs at fastest rate since the pandemic began

Optimism has also been buoyed by expectations that global crude supplies won’t grow fast enough to satisfy demand as Covid-19 vaccinations proliferate and economies that shut down for the better part of a year begin reopening.

OPEC agrees to slowly increase oil production on Covid recovery bet

Defying market expectations for the second time in less than a month, the group agreed to add more than 2 million barrels a day to global oil supplies from May to July. That will return about a quarter of the crude they are still withholding after making deep cuts a year ago in response to the pandemic.

U.S. operators working down DUC backlog

Craig Fleming, World Oil

Despite a modest reduction in the DUC inventory, there are still 7,086 wells waiting on completion. With the industry in disarray, it has become increasingly likely that many of these horizontal boreholes may never be completed.

$80 billion for Amtrak? The ambitious scope of Biden’s infrastructure plan

The $2.25 trillion, eight-year proposal is a follow-up to the $1.9 trillion economic relief bill passed earlier this month. To cover the costs, Biden wants to raise corporate taxes to 28% from 21%. The plan also seeks a minimum tax on profits U.S. corporations earn overseas, increasing the rate to 21% from roughly 13%.

OPEC members foresee little change in oil output targets on April 1

The coalition led by Saudi Arabia was widely criticized three weeks ago when it rebuffed calls to revive some of the crude production halted during the pandemic. As OPEC prepares for another decision on oil output, the producers believe their defiantly cautious approach is paying off.

China inks 25-year oil investment deal with Iran, straining U.S. ties

Beijing plans to invest in Iran while buying oil from the Islamic Republic, further straining its relationship with the U.S. which has already been frayed by China’s imports of covertly-shipped Iranian crude.

Abu Dhabi wants its Murban crude to benchmark Middle East oil prices

On March 29th, when Abu Dhabi begins selling futures contracts for its oil and then shipping the barrels from Fujairah, it will mark an aggressive shift by the emirate. It hopes to change the way nearly one-fifth of the world’s crude is priced.

U.S. shale patch gets back to work as unfinished well inventory falls

The backlog of drilled but uncompleted shale wells called DUCs is rapidly shrinking as oil prices rise, signaling that producers are ready to put drilling crews back to work as the industry rebounds from its pandemic-driven downturn.

Oil prices retreat as Suez blockage ramps up volatility

While the Suez blockage is complicating trade, a long-term realignment of global crude flows has seen westbound shipments from Persian Gulf producers fall, limiting the impact on oil prices.

Wyoming and 12 other states file suits against Biden’s oil lease moratorium

President Joe Biden’s Jan. 27 executive order entitled Tackling the Climate Crisis at Home and Abroad violates federal law by sidestepping honest debate on whether the “speculative” benefits of the plan outweigh the financial cost to states, Wyoming said in a complaint filed Wednesday in federal court. A similar suit was filed separately by more than a dozen states led by Louisiana.

Council’s CEO says newly combined association will accomplish much from position of strength

Leslie Beyer, Energy Workforce & Technology Council; Kurt Abraham, World Oil

Serving as CEO of the Energy Workforce & Technology Council, formed from a merger of PESA and AESC, Leslie Beyer says the new association is strongly positioned to advocate for member companies on a host of workforce, regulatory and technological issues.

Weatherford’s CEO sees energy transition, digital transformation as top OFS priorities going forward

Girish K. Saligram, Weatherford; Kurt Abraham, World Oil

Having taken over the top spot at Weatherford last October, President and CEO Girish Saligram is positioning the firm for post-Covid-19 excellence. Editor-in-Chief Kurt Abraham spoke with Mr. Saligram about his priorities for the future.

European oil demand projections slide in the face of renewed Covid pressure

The oil demand recovery in Europe, a region that accounts for about 15% of global consumption, looks set to take a fresh hit as the continent struggles to deal with another wave of coronavirus cases that could curb summer travel plans.

Leading oil and gas CEOs fall in with Biden’s climate change campaign

Chief executives of some of the largest U.S. oil companies promised to collaborate with the Biden administration in its campaign against climate change during a meeting Monday with White House National Climate Adviser Gina McCarthy.

Yemen rebels rebuff Saudi Arabia’s latest cease-fire proposal

U.S. President Joe Biden has vowed to end the conflict in Yemen, ceasing sales of offensive weapons to Saudi Arabia, removing the Houthis’ terrorist designation to facilitate the delivery of humanitarian aid, and pushing for a negotiated settlement.