Saudi Arabia is starting to stockpile oil again

The key Opec oil producers seem to be finding it harder than expected to sell their output overseas. The probable resulting build-up in their stockpiles should at least help them offset the drop in Iranian supplies as US sanctions start to bite deeper. Crude oil exports from the five Arabian Gulf members of Opec fell […]

Something Strange Is Happening In The Saudi Oil Patch

Saudi Arabia may have started to fill up its oil tanks, export and domestic consumption data suggests, as cited by Bloomberg’s Julian Lee. Traditionally, the summer months are the season of peak local consumption of crude, Lee notes, as air conditioning demand hits a high. However, this year temperatures have been below the five-year average […]

Oil market braces for ‘a major supply shock’

Oil prices could soon rally above $90 a barrel amid growing concerns over the prospect of steep declines in Iranian crude, according to industry analysts. Brent crude was on track to post a fourth week of declines in five on Friday, with the global oil benchmark poised to slip more than 1 percent amid continued […]

Russia’s High Risk Global Oil Strategy

The energy industry is highly sensitive to U.S. sanctions due to the petrodollar being the single most important currency in global trade. Washington is able to exert significant influence by limiting access to the dollar through its financial institutions. Russia is especially exposed to Washington’s ire as a significant part of its governments’ coffers are […]

Permian Decline Rate Innaccuracies Risky for Operators, Investors

While parallels can be drawn between the current boom and prior periods of intense Permian activity, investors and operators should be careful when basing decline rates of horizontal tight oil wells on data from vertical wells, warns a July report by Wood Mackenzie. The Permian has thousands of vertical wells that have been producing for […]

Perry: ‘Energy independence within our grasp’

“True energy independence is finally within our grasp… with America becoming a net natural gas exporter,” according to U.S. Secretary of Energy Rick Perry. “For too long, Russia has enjoyed near-monopoly status as the main supplier of natural gas to our European allies… Simply stated, the U.S. wants to help our partners increase their energy […]

Texas to ‘Shatter’ Oil Production Records with Fewer Rigs and Workers

Six months ago, Texas was on the cusp of breaking oil production records. In June, crude oil production reached 4.3 million barrels per day, putting Texas on track to “shatter” the previous record of 1.263 billion barrels in 1972. “We’re going to blow that record out of the water,” Karr Ingham, Texas oil economist and […]

Peak Shale Oil?

The largest shale oil producer in the Permian spent $264 million more than they made from operations drilling 63 new wells in the Permian and only added a net 9,000 barrels per day of oil equivalent.  Now, how economical is that??? From SRSRocco’s website….. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ While the U.S. reached a new record of 11 million […]

US crude oil output hits 11 million barrels per day for first time ever

U.S. crude oil production last week hit 11 million barrels per day (bpd) for the first time in the nation’s history, the Energy Department said on Wednesday, as the ongoing boom in shale production continues to drive output. The gains represent a rapid increase in output, as the data, if confirmed by monthly figures, puts […]

Permian Operators Not ‘Backing Down,’ But Marcellus Activity ‘Softening,’ Says Halliburton CEO

The CEO of North America’s leading pressure pumper Halliburton Co. said Permian Basin operators do not seem overly concerned about potential oil and natural gas takeaway constraints as activity continues to be strong. Jeff Miller led a conference call early Monday with his management team to discuss second quarter performance. The completion and production division’s […]

Largest Unconventional Shale Producer in Permian Basin Created

Concho Resources Inc. has completed its acquisition of RSP Permian Inc., creating the largest unconventional shale producer in the Permian Basin. “We are excited to complete this transaction and welcome the RSP team to Concho,” Tim Leach, chairman and chief executive officer of Concho, said in a company statement. “By combining two great companies focused […]

OPEC To Rule Oil Markets Till Peak Demand

More than a decade ago, China overtook the U.S. as the world’s biggest carbon dioxide emitter. Today, it’s going for a complete 360 with a hungry drive to beat the United States at the renewable energy game. After all, this is largely a technology game, and China hopes to be the global technology leader, according […]

Venezuela: The Key To Oil Prices

Summary Venezuela oil production has plummeted. Where would oil prices be without Venezuela’s collapse? Where are oil prices headed next? This idea was discussed in more depth with members of my private investing community, Value Portfolio. The world is accelerating into an energy crisis, and in this article, I explore the country that has played […]

Ten years after oil peak, what has changed?

July 11, 2008 was an unforgettable day for the oil industry. The price of West Texas Intermediate — a grade of crude oil used as a benchmark in oil pricing — hit an all-time high of $147 per barrel in New York. So, 10 years later, what has changed? There have been a few major […]

World’s Oil Cushion Could Be Stretched To The Limit, IEA Warns

The world’s oil supply cushion could be stretched to the limit due to prolonged outages, supporting prices and threatening demand growth, the International Energy Agency said on Thursday. The expected drop in Iranian crude exports this year due to renewed U.S. sanctions, coupled with a decline in Venezuela’s production and outages in Libya, Canada and […]

S. Arabia will be ‘Reluctant to Exhaust’ its ‘Substantial’ Spare Capacity

Saudi Arabia will be “reluctant to exhaust” its “substantial” spare capacity, according to oil and gas analysts at BMI Research. “Questions are being asked as to the extent to which Saudi Arabia will increase its production, to offset shortfalls elsewhere in the market,” the analysts said in a report sent to Rigzone. “We believe that, […]

Potential supply shortages lead to oil prices increase

Oil prices have increased due to a potential supply shortage in part due to sanctions, production losses, and impending strikes. Brent crude oil prices jumped 55 cents, or 0.7%, to reach $78.62 a barrel, continuing its upward growth after rising 1.2% on the previous day, while US light crude futures rose 47 cents, or 0.7%, to […]

EIA: U.S. Shortly to Become “the World’s Leading Producer of Crude Oil”

The U.S. Energy Information Administration (EIA) proclaimed on Tuesday that, if its forecasts are correct, “the United States will average nearly 12 million barrels a day (mbd) … in 2019 … mak[ing] the U.S. the world’s leading producer of crude [oil].” Those forecasts could understate the U.S. oil industry’s production, as it builds into its […]

More on LTO Economics in the Bakken

The goal for any commercial company is to make as high as possible profit and returns on invested (employed) capital, primarily the owners’ capital, equity. Light Tight Oil (LTO) extraction from the Bakken and Three Forks formations in North Dakota had a new high of 1,17 Mbo/d in Apr-18 according to data published in Jun-18 […]

US Oil Production 9% higher than peak in 1970 and will be about 20% higher next year

US oil production set a new record back in February, 2018 to surpass the previous oil production peak set in the 1970s. EIA estimates that U.S. crude oil production averaged 10.9 million barrels per day (b/d) in June. EIA projects that U.S. crude oil production will average 10.8 million b/d in 2018, up from 9.4 […]

Saudi king said will boost oil output if needed

The leader of Saudi Arabia promised President Donald Trump that he can raise oil production if needed and the country has 2 million barrels per day of spare capacity, the White House said on Saturday, rowing back on an earlier Trump tweet that appeared to suggest the Saudis had agreed to boost output by that […]

Natural Gas Execs See ‘Century Of Supply’ In US Shale

Natural gas production from U.S. shale fields can keep growing for decades, giving Washington a powerful diplomatic tool to counter the geopolitical influence of other energy exporters such as Russia, industry executives and government officials said at a conference here. Already the world’s largest gas producer, the United States can expand shale gas output another […]

Michael Lynch: What Ever Happened To Peak Oil?

A decade ago, the media was filled with stories about peak oil, numerous books were published on the subject (such as Half Gone and $20 a Gallon!), and even the Simpsons mentioned it in an episode about doomsday preppers.  Now, the topic is largely forgotten and the flavor of the month is peak oil demand.  […]

The Saudis Won’t Prevent The Next Oil Shock

Saudi Arabia is starting to panic, and is growing concerned that the growing number of supply disruptions around the world could cause oil prices to spike. Saudi Arabia is moving quickly to head off a supply crunch, aiming to dramatically ramp up production to a record high 11 million barrels per day in July, according […]

Future of Big Oil Increasingly Shaped by Fate of Global Gas

Big Oil’s fortunes are becoming tied more closely to natural gas than ever before. Majors including Royal Dutch Shell Plc and BP Plc have boosted their proportion of gas output in recent years, helping them trim Exxon Mobil Corp.’s lead as the world’s most valuable oil company. Meanwhile Chevron Corp. added two giant Australian liquefied […]

Saudi Aramco CEO Says Has 2 Mln Barrels Per Day Of Spare Capacity

Oil giant Saudi Aramco said on Monday it has a spare capacity of 2 million barrels per day and can meet additional oil demand in case of any interruption in supplies. Aramco is currently producing 10 million barrels per day (mbpd) and has the ability to produce 12 mbpd, Amin Nasser, chief executive of Saudi […]

Saudi pledges ‘measurable’ oil supply boost as OPEC, Russia agree deal

OPEC agreed with Russia and other oil-producing allies on Saturday to raise output from July, with Saudi Arabia pledging a “measurable” supply boost but giving no specific numbers. FILE PHOTO: The logo of the Organization of the Petroleum Exporting Countries (OPEC) is seen at OPEC’s headquarters in Vienna, Austria June 19, 2018. REUTERS/Leonhard Foeger/File Photo […]

Oil Executive: Industry Needs ‘Another Iraq Or North Sea’ To Meet Demand Growth

The global oil industry needs to find “another Iraq or North Sea every year” to plug the shortfall of oil supply as demand continues to grow, Majid Jafar, the chief executive of the UAE-based Crescent Petroleum, told CNBC on Thursday. According to the oil executive, the industry continues to see underinvestment as spending on exploration […]

Oil Ministers Back Raising Output Despite Iran’s Walk Out

OPEC meets in Vienna on Friday in a final effort to overcome Iranian opposition to a preliminary agreement to boost production by a theoretical 1 million barrels a day — although the actual increase would be smaller as several countries are unable to raise output. Following night of drama in Vienna on Thursday, the Joint […]

OPEC Agrees Modest Hike In Oil Supply After Iran Softens Stance

OPEC agreed on Friday on a modest increase in oil production from July after its leader Saudi Arabia persuaded arch-rival Iran to cooperate amid calls from major consumers to help reduce the price of crude and avoid a supply shortage. Two OPEC sources said the group agreed that OPEC and its allies led by Russia should increase […]

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