U.S. Onshore ///

Special Focus: 2021 Forecast & Review – U.S. Oil and Gas Production

Staff, World Oil

Despite an historically low, 54% decline in drilling activity, U.S. oil production was down just 7.6% on a year-over-year basis, averaging 11.318 MMbopd in 2020. The loss in U.S. output could have been more drastic, but OPEC+ did a masterful job of curtailing production during the year to support benchmark prices.

Privately-held shale drillers poised to create headaches for OPEC

While oil majors and publicly-traded counterparts are mostly sticking to the mantra of drilling discipline, private operators’ ambitious growth plans present the OPEC cartel with a wild card as prices rebound and it attempts to boost its own oil production.

Biden interior pick Haaland’s fossil fuel stance draws GOP opposition

The Senate ultimately is still expected to confirm Haaland, but the slim control Democrats have means Haaland needs every vote she can get. Joe Manchin, the West Virginia Democrat who is chairman of the committee considering her nomination, threw into doubt the fate of another Biden nominee last week.

Record U.S. winter storm deeply impacts global LNG markets

The Arctic blast that has wreaked havoc on U.S. energy markets is now poised to reverberate internationally as it slows shipments of liquefied natural gas from the Gulf Coast.

U.S. will import 62% more crude by 2022 due to domestic production declines, says EIA

EIA expects that the United States will import more crude oil to fill the widening gap between refinery inputs of crude oil and domestic crude oil production in 2021 and 2022. U.S. crude oil production declined by an estimated 0.9 million bpd (8%) to 11.3 million bpd in 2020 because of well curtailment and a drop in drilling activity related to low crude oil prices.

U.S. oil demand accelerates as refiners project more summer driving

American refiners are processing the most crude since the economy ground to a halt in March in anticipation of a vaccine-driven boost in gasoline demand this summer. The uptick means that the refiners are competing for domestic barrels that for months were sent to more robust markets in Asia.

EIA raises U.S. crude output forecast for 2022

Supply from new oil wells will exceed declining flows from wells already in service, raising overall crude production from the second half of this year, the U.S. Energy Information Administration said in its Short-Term Energy Outlook.

Total to meet all its U.S. electricity needs with new Texas solar projects

“I am very pleased that Total is further contributing to the development of solar power in the U.S. We look forward to taking advantage of the many growth opportunities in the U.S. market to address the challenges of the energy transition,” said Patrick Pouyanné, Chairman and CEO of Total.

Biden’s anti-oil crusade can make climate change worse

America is the world’s biggest consumer of crude oil, and any restrictions of domestic production will mean more will have to be shipped in from other countries with less stringent humanitarian and environmental laws.

Pipeline owners look to hydrogen as natural gas comes under attack

After former Secretary of State John Kerry, warned that natural gas pipelines could become “stranded assets” within 30 years as the administration seeks to end carbon emissions from power plants, owners turn to hydrogen to keep three million miles of U.S. pipelines from going obsolete.

API chief calls oil leasing ‘a lifeline to local economies’ at USEA Forum

“We are rooting for President Biden to lead America out of crisis,” API President and CEO Mike Sommers said. “As he works toward that important goal, he faces clear choices. Energy abundance or foreign dependence. American jobs or overseas jobs. Economic revival or small-town decline. Progress or retreat. Thus far, President Biden is on the wrong side of a number of these consequential choices.”

Oil markets keep a wary eye on shale producers’ pledge for restraint

How the fragmented U.S. shale industry will respond to increased incentives to drill has become a crucial question for traders and industry watchers across the world.

Biden’s oil and gas ban immediately challenged in Federal court

Western Energy Alliance, which says it represents 200 oil and natural gas companies, said the administration’s suspension of leases is “unsupported and unnecessary,” and an overreach by the U.S. Bureau of Land Management, according to a petition filed Wednesday in Wyoming federal court.

What the consolidation in fracing means to its future

Brett Chell, Cold Bore Technology

How the recent consolidation of operators in the fracing sector will lead to a digital revolution.

Biden’s plan to cut U.S. oil production becomes clearer

On his first day in office, President Joe Biden made good on a campaign promise to cancel the Keystone XL oil pipeline and suspended new drilling permits over the next 60 days. This week, Biden will go even further: suspending the sale of oil and gas leases on federal land, where the U.S. gets 10% of its supplies.

Biden prepares to end new oil and coal leases on federal land

Biden's move would block the sale of new mining and drilling rights across some 700 million acres of federal land. It could also block offshore oil and gas leasing, though details are still being developed.

Keystone XL shutdown may signal the end of major U.S. oil infrastructure

Even before Biden’s inauguration, the oil and gas industry was on its back foot when it came to building major new infrastructure. Despite Donald Trump’s pro-fossil-fuel policies, energy companies such as Williams Cos. and Dominion Energy Inc. have been forced to scrap new projects in the face of stiff opposition.

Shaletech: Improving unconventional reservoir performance with geoscience-based development strategies

Robert Laronga, Laurent Mosse, Edgar Velez, Elia Haddad, Jorge Gonzalez Iglesias, Schlumberger

As efficiencies plateau in North American shale basins, operators require new strategies to lower costs/bbl that go beyond drilling and completion. New technology and workflows can help operators shorten the learning curve to maximize unconventional reservoir performance, early in the project life cycle.

Fracturing and the environment

Dr. Ali Daneshy, Daneshy Consultants Int’l.

One of the industry’s premier experts says hydraulic fracturing actually reduces the environmental impact of oil and gas production by increasing the productivity of each well.

Europe turns down more U.S. LNG on greenhouse gas concerns

The latest setback for exporters is the expiry of a 2017 accord between U.S. LNG developer NextDecade Corp. and the Port of Cork to build an import terminal in Ireland.