[copious.abundance]

>>> Bloomberg <<<
$this->bbcode_second_pass_quote('', '[')b]Oil Spending May Exceed $375 Billion, Report Says
By Anthony DiPaola

June 1 (Bloomberg) -- State-run oil companies and large non-government crude producers may spend more than $375 billion to develop hydrocarbon assets this year as they prepare for a rebound in fuel demand, Ernst & Young LLP said.

“Companies are wary of finding themselves in a position where they have to play catch-up on investment when the upturn materializes,” Andy Brogan, Ernst & Young’s Global Oil and Gas transaction advisory leader, said today in a report.

Oil producers have reined in spending since crude tumbled from its $147.27-a-barrel high in July and the global recession curbed demand for fuel. While oil futures are still about $80 below that record, they have gained more than 50 percent this year on optimism the economy may be on the brink of recovery, prompting some producers to reconsider investment cutbacks.

“The majority of national oil companies and the largest oil majors are planning to maintain or increase their level of capital investment through the down cycle,” Brogan wrote.

National oil producers may spend more than $275 billion in 2009, Ernst & Young said, without giving a year-earlier figure for comparison. So-called supermajors may invest $100 billion, down from $122 billion last year, according to the report.

[...]

[copious.abundance]

>>> Rigzone <<<
$this->bbcode_second_pass_quote('', '[')b]Kuwait Oil Co Says No Upstream Projects Canceled
by Nour Malas and Tahani Karrar
Dow Jones Newswires
Tuesday, June 02, 2009

State-owned Kuwait Oil Co. has not canceled or postponed any upstream projects, and will invest as much as $6 billion in 2009 on exploration and production activities, the company's chairman said Monday.

"I want to emphasize that we have not slowed down our strategic investments," said Sami Al Rushaid, who is also KOC's Managing Director, at an oil companies conference.

KOC will spend more than $6 billion on exploration and production capacity this year as part of Kuwait's plans "to produce 4 million barrels per day by 2020 and 1 billion cubic feet a day of gas by 2015," Al Rushaid said.

Crude production capacity in Kuwait, holder of the world's fourth largest oil reserves, presently stands at 3 million barrels a day, Al Rushaid said.

"Kuwait still plans to produce 4 million barrels per day by 2020, it still remains 2020 and the 4 million capacity will be ongoing from 2020 to 2030," he said.

[...]

[AirlinePilot]

Canadian Oilsand development slowed by lack of investment.


Even under the industry group's "growth case," which assumes the investment climate will get better, oilsands production is expected to reach only 2.9 million barrels a day (bbl/d) by 2020 — down from 3.5 million bbl/d in the 2008 forecast.


For the oilsands, the weakened economy and difficulty finding capital mean "the pace of development has slowed,” said Greg Stringham, CAPP’s vice-president of markets and oilsands.



http://www.cbc.ca/money/story/2009/06/0 ... sands.html

[AirlinePilot]

Oil and NG rig counts fall


"June 5 (Bloomberg) -- The number of oil and natural gas rigs operating in the
U.S. fell to the lowest since February 2003 this week, as declines in oil drilling
outpaced reductions in gas rigs, according to data published by Baker Hughes Inc.
Rigs exploring for or producing oil or gas declined by 12, or 1.3 percent, to 887,
Baker Hughes said today on its Web site. The combined oil and gas rig count has
fallen 56 percent from a peak of 2,031 last year, a 22-year high."

http://www.bloomberg.com/apps/news?pid= ... fer=energy

[copious.abundance]

>>> LINK <<<
$this->bbcode_second_pass_quote('', '[')b]Oil production to double in 30 years
By Dina O'Meara, Calgary Herald
June 5, 2009

CALGARY - Crude oil production is Canada is expected to double within the next three decades, despite current tight finances and a slower pace of development in the oil sands, an industry association said Friday.

In a best case scenario, oil production is forecast to rise to 3.3 million barrels per day by 2015 from 2.7 million barrels last year, and up to 4.2 million barrels by 2025, the Canadian Association of Petroleum Producers said.

Solely in the oil sands, production is expected to increase by 83 per cent to 2.2 million barrels per day by 2015, and climb to 3.3 million barrels per day by 2025.

"Even with delays due to current economic conditions, oil sands production is expected to grow, although the pace of development has slowed," Greg Stringham, CAPP vice president said in the 2009-2025 forecast.

A more conservative outlook for total oil production calls for half the production growth, an increase of 300,000 barrels per day, to 2015 and a gradually declining output down to 2.8 million barrels per day by 2025.

[Nefarious]

Came back from a meeting with one of the majors last Thursday.They had rumors flying at their offices that they were about to cut approx. 25% of their work for(offer early retirement packages) and hire contractors to replace them. Not my prediction just rumors and the meeting didn't go so well for us for new future contracts. I guess we will see if it was just rumors or not in the coming months.

[AirlinePilot]

OF,

You do have your own thread for this stuff no? If you continue to post off topic subject matter than it will get moved to that thread.

[threadbear]

OF--Here is a counter to your link. Which is more objective? I believe your's is from the Calgary Herald. This one from the CBC. CBC trumps Calgary Herald, a Canwest- crap publication.

"Over the next 11 years, Canada's oil industry is likely to produce 500,000 barrels a day less than was forecast a year ago, the Canadian Association of Petroleum Producers (CAPP) said Friday.

The forecast for the oilsands has dropped even further, the industry group said in an annual report on expected future production.

Even under the industry group's "growth case," which assumes the investment climate will get better, oilsands production is expected to reach only 2.9 million barrels a day (bbl/d) by 2020 — down from 3.5 million bbl/d in the 2008 forecast.

Oil production forecast, millions of barrels a day
2008 2015 2020
Growth case
Industry 2.7 3.3 4.0
Oilsands 1.2 2.2 2.9
Minimum case
Industry 2.7 3.0 3.0
Oilsands 1.2 1.9 2.0
Source: Canadian Association of Petroleum Producers

For the oilsands, the weakened economy and difficulty finding capital mean "the pace of development has slowed,” said Greg Stringham, CAPP’s vice-president of markets and oilsands."

http://www.cbc.ca/money/story/2009/06/0 ... sands.html

[Maddog78]

The Herald's story uses CAPP as it's source and the CBC's story uses CAPP as it's source.

What the hell?


EDIT: I love some of those comments on the CBC story.
So many people have not even a clue at all how the oil business works.
I'd love to rip into a few of them but what the hell, it's not even worth it.

[copious.abundance]

$this->bbcode_second_pass_quote('AirlinePilot', 'O')F, You do have your own thread for this stuff no? If you continue to post off topic subject matter than it will get moved to that thread.

[copious.abundance]

$this->bbcode_second_pass_quote('threadbear', 'O')F--Here is a counter to your link. Which is more objective? I believe your's is from the Calgary Herald. This one from the CBC. CBC trumps Calgary Herald, a Canwest- crap publication.

"Over the next 11 years, Canada's oil industry is likely to produce 500,000 barrels a day less than was forecast a year ago, the Canadian Association of Petroleum Producers (CAPP) said Friday.

The forecast for the oilsands has dropped even further, the industry group said in an annual report on expected future production.

Even under the industry group's "growth case," which assumes the investment climate will get better, oilsands production is expected to reach only 2.9 million barrels a day (bbl/d) by 2020 — down from 3.5 million bbl/d in the 2008 forecast.

Oil production forecast, millions of barrels a day
2008 2015 2020
Growth case
Industry 2.7 3.3 4.0
Oilsands 1.2 2.2 2.9
Minimum case
Industry 2.7 3.0 3.0
Oilsands 1.2 1.9 2.0
Source: Canadian Association of Petroleum Producers

For the oilsands, the weakened economy and difficulty finding capital mean "the pace of development has slowed,” said Greg Stringham, CAPP’s vice-president of markets and oilsands."

http://www.cbc.ca/money/story/2009/06/0 ... sands.html

[TheDude]

Forecast fever. The EIA's low price forecasts actually show near term peak - rebounding down the road, of course. They deign to publish charts of their findings owing to their alarming nature, so you have to roll your own - luckily I'm the Dude -



I like how in the different price scenarios the historical data differs ever so slightly. Goebbels would approve!

In defense of the EIA staff I should mention that Robert Rapier and others used to ask them about minutiae in TWIP and other documents, and get very interesting replies. But still it is a political organization, you need to consider that upfront.

[AirlinePilot]

Recession, energy prices depress rig demand


HOUSTON, TEXAS: The ongoing global recession and decline in energy demand, along with uncertainty about oil and natural gas prices, continue to put downward pressure on exploratory drilling efforts worldwide. Cancellations or delays of drilling programs, falling day rates and financing issues are plaguing the rig market.

http://www.energycurrent.com/index.php? ... ryid=18593

[copious.abundance]

>>> Rigzone <<<
$this->bbcode_second_pass_quote('', '[')b]Economy, Higher Oil Prices May Restart Shelved Projects
by Florence Tan and Supunnabul Suwannakij
Dow Jones Newswires
Tuesday, June 09, 2009

A rebound in oil prices and signs of economic recovery are renewing interest in exploration and production, but producers are still wary of volatility and determined to cut construction and service costs, which surged last year after oil prices spiked to record levels.

Crude oil prices have risen back above $60 a barrel, from a low of around $42 earlier this year, and are expected to rise further in the next few years as supply fails to keep pace with a global recovery.

Higher prices and lower construction costs have made some shelved projects viable again. Estimated costs for Petro-Canada's (PCZ) delayed Fort Hills oil sands mine have sunk 30% to below C$10 billion, and the company expects to generate a double-digit return with oil prices at $60 a barrel, the company's chief executive Ron Brenneman said in late April.

[...]

[Maddog78]

$this->bbcode_second_pass_quote('', 'a')nd the company expects to generate a double-digit return with oil prices at $60 a barrel, the company's chief executive Ron Brenneman said in late April.

[TheDude]

$this->bbcode_second_pass_quote('Maddog78', '')$this->bbcode_second_pass_quote('', 'a')nd the company expects to generate a double-digit return with oil prices at $60 a barrel, the company's chief executive Ron Brenneman said in late April.

[TheDude]

Today's This Week In Petroleum has a rundown on profits/losses for producers. Worth a look.

[AirlinePilot]

Global E&P spending off 15 pct in 2009

Spending globally on exploration and production is expected to shrink by 15 percent in 2009 from the previous year, compared to the 12 percent drop the companies had expected in December, Barclays' analysts James Crandell and James West said in a report on their semi-annual survey of 402 energy companies. Energy companies have delayed or canceled many projects as oil prices tumbled from their record highs reached in July 2008. That has erased about half the price in shares of oilfield service providers such as Schlumberger Ltd (SLB.N) and Halliburton Co (HAL.N). U.S. spending is expected to drop 38 percent to $67.5 billion, far steeper than the 26 percent decline the industry had expected in December, and the biggest drop since the 40 percent cut in 1986, the analysts said.

http://www.reuters.com/article/OILINT/i ... 5220090622

[copious.abundance]

>>> Rigzone <<<
$this->bbcode_second_pass_quote('', '[')b]Oil Industry Senses Better Days Ahead
by John Cox
The Bakersfield Californian
Wednesday, June 17, 2009

Hundreds of local workers on and off the oil patch may have surging crude prices to thank for their jobs.

An executive at Nabors Well Services Co. said Monday that, despite a warning filed in March, the company will not need to lay off as many as 780 employees. Instead, Nabors' dismissals probably will not exceed about 100, including the 43 oil rig workers it let go last week.

"The anxiety level has come down a bit," said Nabors' local director of business development, Alan Pounds.

He and others said that a 49 percent increase in Kern oil prices over the last two months appears to have stabilized local oil-related employment, even as worries mount that higher prices could hurt the rest of the economy.

[...]

[AirlinePilot]

The hits they just keep a comin' !!!!!

Energy investment to lag further: IEA

Muriel Boselli

Paris — Reuters, Tuesday, Jun. 23, 2009 03:20PM EDT

Recession will cut investments in the energy supply sector in 2009 by more than the $100-billion (U.S.) quoted in the International Energy Agency's report
released in May, its chief economist said on Tuesday. The agency, adviser to 28 industrialized countries, said in a report presented to the G8 energy ministers in May that oil and gas upstream investment would fall 21 per cent, or about $100-billion in 2009 from 2008 due to the global recession. “The information that we are getting... may well mean that we are going to revise the numbers downwards,” Fatih Birol told Reuters in an interview. Mr. Birol said the IEA had not made a comprehensive update of the G8 report but that the agency was getting signals the drop in investment would be worse than initially feared.

http://www.theglobeandmail.com/globe-in ... further-ie

a/article1193729/