Production ///

Oil prices surge on falling U.S. crude inventory

A U.S. government report showed domestic crude inventories fell by 5.89 million barrels last week, the biggest decline in two months, bringing nationwide supplies to the lowest since late February. A gauge for gasoline demand ticked higher for a seventh straight week.

Machine learning for predicting stochastic fluid and mineral volumes in complex unconventional reservoirs

Fred Jenson, Chiranjith Ranganathan, Shi Xiuping, Ted Holden, CGG

A machine learning workflow can quickly, and accurately, predict mineralogy, porosity and saturation in multiple wells to better understand productive layers in unconventional oil reservoirs.

ChampionX adds autonomous control for rod lift wells in new XSPOC 3.1 software release

ChampionX Artificial Lift announced the launch of XSPOC 3.1, the latest release of its production optimization software. This release provides a number of powerful updates to the XSPOC platform, including advancements in setpoint optimization for rod lift wells and AI-driven autonomous control to better optimize production assets with less resources and time.

U.S. Gulf of Mexico oil production set to increase through 2022, says EIA

The Energy Information Administration forecasts U.S. crude oil production in the U.S. Federal Gulf of Mexico to increase in the next two years, according to the latest Short-Term Energy Outlook. By the end of 2022, 13 new projects could account for about 12% of total GOM crude oil production, or about 200,000 barrels per day.

Petronas partners with AVEVA to drive digital transformation advances

“At Petronas, we are continuously looking to create value with disruptive technologies that offer optimum solutions. Utilizing AVEVA Unified Supply Chain software, we have been able to adopt a more integrated business process, that optimizes our productivity, allowing us to deliver with less,” said Yusri Yusof, vice president of refining and trading at Petronas.

Saudis cover Asian refinery orders as oil output ramps up

Saudi Arabia will supply all the crude oil that was requested by India’s state-owned refiners and at least five other Asian customers next month as the linchpin producer starts to ramp up output.

Total’s latest African deal will position Uganda among major oil exporters

Total CEO Patrick Pouyanne called the pacts a historic milestone for the production work and export pipeline that will draw more than $10 billion of investment. “It’s a very large development, one of the largest that will be developed on this continent,” though just the beginning of a process that will see oil flow in early 2025, he said.

Argentina considers oil price controls to support Vaca Muerta shale exploration

Argentina believes a price ceiling would prevent bull runs in oil markets from triggering a surge in fuel prices, while a price floor would discourage oil companies from pulling out of a marginal asset like Vaca Muerta if markets collapse.

U.S. keeps Dakota Access Pipeline open during environmental review

The Biden administration’s decision to allow the line to keep operating is a victory for pipeline owner Energy Transfer LP and drillers such as Continental Resources Inc. that use it transport crude from North Dakota’s Bakken oil field.

Total expected to proceed with $5.1 billion Uganda oil project

The final investment decision on a key pipeline will see Total tap more than a billion barrels of crude from Uganda and ship it across East Africa to the coast. A decision on the development of the oil fields feeding the pipe is likely at the same time.

Shell reports first profit from upstream operations since pandemic began

Shell’s upstream unit was able to capture “the upside from the current commodity price environment” in the first quarter, according to a statement April 7th.

While OPEC ramps up production, U.S. oil output is projected to fall

With the U.S. unlikely to ever reach previous crude production levels, OPEC+ is moving to roll back part of their oil supply cuts in the coming months.

Oil prices slide on OPEC output call and surging India virus cases

Crude has rallied this year as vaccine rollouts help major economies reopen. The decision by the Organization of Petroleum Exporting Countries and its allies was seen as a vote of confidence in the outlook for energy demand. The U.S. also added more than 900,000 jobs in March, the most in seven months.

Russian oil production rose in March under higher OPEC quota

Russia pumped 43.34 million tons of crude and condensate last month, according to preliminary data from the Energy Ministry’s CDU-TEK unit. That equates to 10.249 million barrels a day, based on 7.33 barrel-per-ton conversion ratio, or 1.3% more than in February.

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.

OPEC cuts global oil demand estimates ahead of production decision

The revision, which mainly affects the next few months, follows a recommendation from OPEC Secretary-General Mohammad Barkindo that the coalition should remain very cautious.

Oil prices slip below $61 on rising dollar and upcoming OPEC meeting

Oil is poised to close out a fourth quarterly advance on Wednesday, but the past week has seen volatility climb amid the Suez Canal blockage. While fuel consumption is rising in many parts of the world, risks remain, with the head of the U.S. Centers for Disease Control and Prevention warning of “impending doom” as cases and deaths in the country pick up.

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.

New Mexico slashes routine gas flaring allowances

The three-member New Mexico Oil Conservation Commission voted unanimously for rules that are set to go into effect as early as May. Oil companies, gas processing plants and pipeline operators will have until 2026 to get their gas emissions down to 2% of production.

PetroChina’s $37B capex budget makes it the world’s most active oil company

China’s quick recovery from Covid-19 means that its demand for oil and gas has fully recovered from the pandemic-induced swoon of early 2020, and President Xi Jinping continues to make energy security a top priority.