Production ///

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.

Record cold brings a windfall for small U.S. natural gas producers

After years of depressed prices and weak margins, U.S. natural gas producers -- at least those with wells and equipment that aren’t frozen -- are cashing in on an unusually extreme blast of cold. The freeze is giving a rare boost to a market that’s never recovered from a crash more than a decade ago, flooded by cheap supplies from shale fields.

Canada’s Trudeau rejects a NAFTA challenge to Keystone XL shutdown

Canadian Trade Minister Mary Ng said she is focusing her efforts with the new Biden administration on mutual U.S.-Canada interests despite early policy hiccups that risk further fracturing ties between the two nations, whose commercial relationship is worth $725 billion a year.

Regulators crack down on Texas shale gas flaring

Texas’s energy regulator is taking an uncharacteristically critical approach toward burning off excess natural gas, a sign that growing pressure from environmentalists and investors to curb the controversial practice is paying off.

LLOG strikes deal with Eni and Marubeni for deepwater Mississippi Canyon tieback

The agreement provides LLOG access to Eni and Marubeni Oil & Gas’ existing subsea infrastructure connected to the Williams-owned Devils Tower Spar in Mississippi Canyon 773 to optimize its development of the Taggart discovery.

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.

Canada may seek U.S. payback via NAFTA after Biden cancels Keystone XL

To “retroactively remove regulatory approval on the basis of which an investment was made is, in my view, a slam dunk case of a claim for damages through NAFTA under the investor protection provisions,” Alberta Premier Jason Kenney said on Tuesday.

THREE60 Energy awarded first international duty holder contract for Galoc Field FPSO

Under the terms of the life of field contract, THREE60 Energy will carry out operations and maintenance duties on behalf of the Galoc Joint Venture, with the objective of improving performance and extending the field’s economic life.

Saudis’ OPEC+ oil strategy success buys the group some time

Last month’s pledge by Saudi Arabian Energy Minister Prince Abdulaziz bin Salman to slash production by a further 1 million barrels a day has buttressed global markets against the latest onslaught from the pandemic.

African members’ production troubles offset OPEC’s planned increase

OPEC boosted crude production as planned last month, but the increase was tempered by disruptions at long-troubled member nations.

Oil price surges on signs of a tight global crude market

“There’s a sense that normalcy will occur and it’s looking more certain,” boosting the outlook for oil demand, said Michael Lynch, president of Strategic Energy & Economic Research. Meanwhile, “the Saudi production cuts start today, and people are focused on falling inventories and how the market is tightening.”

Oxy teams with Macquarie to deliver world’s first carbon-neutral oil from Permian basin to India

The transaction between Oxy and India's Reliance Industries is the energy industry’s first major petroleum shipment for which greenhouse gas emissions associated with the entire crude lifecycle, well head through combustion of end products, have been offset.

BP sells Oman gas stake in push to divest $25B of fossil fuel assets

BP will sell a stake in an Omani gas block to Thailand’s national energy firm for $2.6 billion, part of a push to divest billions of dollars of assets and focus more on renewable energy.

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.

Texas Alliance’s Petro Index shows deep trough in state’s oil and gas economy during 2020

“The Texas upstream oil and gas economy was already in a state of decline before Covid-19,” said Alliance Executive V.P. and Petroleum Economist Karr Ingham, in exclusive comments to World Oil, adding that the demand contraction in the U.S. and globally was easily the sharpest demand drop in the shortest amount of time on record.

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.

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.

Baker Hughes expands non-metallic materials with new composite flexible pipe for onshore pipelines

The flexible, lightweight reinforced thermoplastic pipe (RTP) offers an economic and environmentally superior alternative to resource-intensive onshore steel pipes, for optimizing the core structure of flowline and oil and gas pipeline networks.

BP pushes Texas to ban gas flaring, then files 121 requests to flare Texas gas

After pushing Texas energy regulators to end the practice of natural gas flaring for environmental reasons, BP filed 121 flaring requests that test the limits of the rules and call into question the company’s pledge to reduce carbon emissions.

EDF claims more regulation can cut Permian basin flaring

As much as 40% of the natural gas that’s expected to be flared in the Permian Basin in 2025 could be avoided at no cost to drillers if regulators abandoned their hands-off approach to the controversial practice, according to a report.