Shale ///

How bad is the shale downturn? Oxy has only one rig drilling the Permian.

“Every step we take and every decision we make is around ensuring that ultimately we get back to a stronger balance sheet and that we’re breakeven at less than $40” a barrel, Hollub said during a call with analysts on Tuesday.

Kamala Harris’ frac stance worrisome to shale states, attractive to the left

Less than two hours after Kamala Harris was named Joe Biden’s running mate, President Donald Trump had cast the California Democrat as an oil industry and fracing foe.

Southwestern Energy to acquire Montage Resources in all-stock deal

Based on the 3-day average closing share prices of the companies as of August 11, 2020 and under the terms of the agreement, Montage Resources shareholders will receive 1.8656 shares of Southwestern for each Montage Resources share.

Negative impacts of historically low drilling activity reverberate across the oil and gas industry

From bankruptcies and asset fire sales to job losses and record declines in crude production, drilling activity levels not seen since 1940 are affecting every corner of the oil and gas industry. World Oil editors explore this new low-output reality, how companies large and small are maneuvering to survive, and the potential effects of emerging political and grasroots action.

U.S. drilling rig count lowest since 1940 on falling shale exploration

“North American E&Ps are in a battle for investment relevance, not a battle for global market share,” Matt Gallagher, chief executive officer at Parsley Energy Inc., told analysts during a conference call this week. “Allocating growth capital into a global market with artificially constrained supply is a trap our industry has fallen into time and time again.”

Dakota Access Pipeline wins a U.S. appeals court reprieve

Judges said Wednesday that they expect the U.S. Army Corps of Engineers to clarify in front of a federal district court whether the agency thinks the pipeline must shut after a key permit was vacated in July. The decision from the U.S. Court of Appeals for the District of Columbia Circuit buys pipeline operator Energy Transfer LP some time after the July 6 shutdown order rocked the industry.

Shale drillers plan for maintenance, not growth, as oil prices stall

The pandemic and subsequent plunge in crude prices has forced U.S. crude explorers to scrap plans to expand supplies amid investor skepticism toward the shale business model. For some of the biggest names, that’s meant vowing restraint as long as oil lingers at levels too low to support a new boom.

Range Resources sells Louisiana shale assets at dime-on-the-dollar valuation

Range Resources Corp. is selling its Louisiana shale fields for about one-10th of what it paid for them just four years ago as depressed natural gas prices hammered the heavily indebted driller.

Oxy restores employees’ pay, doubles executive salary cap

Occidental Petroleum Corp. has restored employee pay cuts imposed after oil prices tumbled and doubled the salary cap for executives to $500,000 a year.

Quarterly losses are a reality check for shale producers

In second-quarter earnings reports published after the close of trading in New York, QEP Resources Inc. cut its production outlook, WPX Energy Inc. further reduced its capital spending budget, while Concho Resources Inc. stuck with plans to keep crude volumes flat from 2019 levels, ending years of growth. QEP shares dipped as much as 20%.

Oil and Gas Climate Initiative to develop online gas-flaring tracking system

The Global Gas Flaring Explorer platform will deliver improved monitoring, visibility and transparency in flaring volume data, and will be publicly available in early 2022. The tracking of flare volumes over time, including identifying which flares are currently active and which ones are inactive, through a standardized methodology will improve the ability to monitor and demonstrate progress towards the elimination of routine flaring.

Delaware Basin driller Rosehill Resources declares bankruptcy

Rosehill Resources Inc. filed for bankruptcy protection after a plunge in oil prices forced the Permian shale explorer to seek a restructuring of its debt.

As the oil industry struggles, are national leaders waiting until it's too late to intervene?

In today's podcast, World Oil editors discuss service companies' unbiased market projections running counter to OPEC and IEA's models; Canadian drillers want new tax structures to replicate Norway's success; and a Texas regulator changes his tune on tariffs.

Schlumberger cutting 21,000 jobs on weak Q2 sales, dismal outlook

The second-quarter rout was so bad for Schlumberger that it’s spending $1 billion on job severance in a move that will shrink staffing to an 11-year low. Various restructuring and impairment charges cost it another $2.7 billion, the company said Friday in a statement.

Texas regulator proactively inspects Permian Highway Pipeline construction

Inspectors with the Railroad Commission of Texas are continuing critical inspections of the Permian Highway Pipeline, one of the largest pipeline projects under construction in Texas in 2020.

Funding for shale drillers dries up as lenders leave the sector

Banks lending against the reserves of hundreds of independent U.S. drilling companies has pulled back at an unprecedented rate this year as prices slumped. Meanwhile, many in the industry expect further reductions to credit facilities in the fall, with higher costs and more stringent protections for lenders.

Gardner Denver’s new GD 250HDD pump enters horizontal directional drilling market

Gardner Denver High Pressure Solutions has launched its new GD 250HDD pump to serve as a durable, reliable, American-made pump for a range of horizontal directional drilling (HDD) applications.

World Bank: Global gas flaring at its highest since 2009

According to World Bank research. gas flaring results in more than 400 million tons of CO2 equivalent emissions every year and wastes a valuable resource, with harmful impacts to the environment from un-combusted methane and black carbon emissions.

Second Bakken pipeline shutdown further threatens shale recovery

On July 2, a lesser-known conduit called Tesoro High Plains was ordered shut for the first time in its 67 years of operation. Along wit Dakota Access, the two pipelines ship more than one-third of crude from America’s prolific Bakken shale formation to market.

Shale oil realities mean Chevron Noble deal likely won’t start an M&A wave

With Chevron agreeing to pay just a 7.5% premium over Noble’s July 17 closing price, the all-stock deal isn’t eliciting much speculation that a new spree of acquisitions is in the offing. That means little prospect of relief for investors in hundreds of struggling drillers in places like West Texas and Oklahoma.