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Oil and Gas Roundup — July 6

July 06, 2018
TOPICS: In the news
A roundup of oil and natural gas news from around the state, nation and world:

Rig count up in Oklahoma, U.S.

The number of rigs exploring for oil or natural gas in Oklahoma increased by one to 141 this week, as the nationwide count grew by five to 1,052.

A year ago, 136 rigs were active in Oklahoma and 952 across the country.

Nationwide, 863 rigs sought oil and 187 natural gas; 930 rigs were horizontal and 55 vertical.

Of the other major oil- and gas-producing states, Texas fell by four to 526, New Mexico gained four to 99, Louisiana was up two to 57, North Dakota climbed by three to 57, Pennsylvania was unchanged at 37, Colorado lost one to 31 and Wyoming was up one to 27.

The Permian Basin rig count, at 475, far outstripped that of the second-most active play, the Eagle Ford, with 81 rigs.

Oklahoma’s Cana Woodford remains the most active play outside Texas, with 68 rigs in operation, a loss of six over the previous week.


Report says gas will surpass oil as global energy source

A new report from DNV GL—a global quality assurance and risk management company—shows growing confidence that natural gas will play an increased role in the global energy mix.
Eight-six percent of 813 senior industry professionals agree that gas use will increase worldwide over the next decade, compared to 77 percent last year. The findings appear in “Transition in Motion,” a special report from DNV GL on the outlook for the oil and gas industry in 2018.

The report showcases DNV GL’s 2018 Oil and Gas Industry Outlook research and 2017 Energy Transition Outlook.

“Society’s transition to a less carbon-intensive energy mix is already a reality, and oil and gas will continue to be crucial components,” said Liv Hovem, CEO of DNV GL oil and gas. “Our research affirms that the industry is already taking positive steps to secure the important role we forecast gas to play in helping to meet future, lower-carbon energy requirements.”

DNV GL forecasts that global oil demand will plateau within the next 15 years, peaking in the early 2020s. However, global gas demand will continue to grow for another two decades and peak during the mid-2030s. The company predicts that gas demand will be about 15 percent greater than it was in 2017. In addition, gas will overtake oil to become the world’s largest energy source.

Read more at North American Shale.


U.S. oil prices down after EIA reports surprise weekly climb in U.S. crude supplies

U.S. oil prices fell sharply Thursday after the Energy Information Administration reported an unexpected climb in crude supplies for the week ended June 29. They rose by 1.2 million barrels, the EIA said.

The data were released a day later than usual because of Wednesday's Independence Day holiday. Analysts surveyed by S&P Global Platts had forecast a fall of 4.5 million barrels, and the American Petroleum Institute on Tuesday reported a drop that matched that forecast, according to sources.

Gasoline stockpiles fell by 1.5 million barrels for the week, but distillate stockpiles were up by 100,000 barrels for the week, according to the EIA. The S&P Global Platts survey forecast supply decreases of 2.5 million barrels for gasoline, and 250,000 barrels for distillate stocks.

August crude CLQ8, +1.17% fell 97 cents, or 1.4%, to $73.17 a barrel on the New York Mercantile Exchange, down from $74.01 before the supply data.

— Marketwatch


Renewable natural gas flows into SoCalGas lines

The first renewable natural gas from an anaerobic digestion facility in Southern California is now being injected into natural gas pipelines, according to reports.
That news came this week from Southern California Gas (SoCalGas) and waste management company CR&R.

Renewable natural gas is a carbon-negative fuel produced from waste that can be used in trucks and buses, to generate electricity, fuel heating systems and for cooking.
The renewable natural gas from the digester in Perris, California, is being used to fuel roughly 400 of CR&R’s waste-hauling trucks.

“SoCalGas is committed to delivering cost-effective solutions to our customers that both reduce emissions linked to climate change, and keep energy bills affordable,” said Sharon Tomkins, SoCalGas vice president of Customer Solutions and Strategy, in a statement.

CR&R is producing renewable natural gas using organic waste collected in Southern California cities’ green waste bins and processed in the digester, believed to be the largest and most-automated in the world.

The biogas is upgraded to the same standards and specifications of traditionally sourced natural gas and then put into a new 1.4-mile section of SoCalGas pipeline.

— Kallanish Energy


Mexico's new government will honor oil contracts if they are clean

Oil and gas contracts awarded under the Mexican government’s energy reform will be respected by the incoming administration provided no problems emerge in a review of the tender process, the likely future finance minister said on Wednesday.

Leftist Andres Manuel Lopez Obrador won Sunday’s presidential election by a landslide. Carlos Urzua, his choice for finance minister when he takes office in December, said energy contracts would be honored if everything was in order.

“If it looks good, on we go. It’s a contract we have to respect,” Urzua told Mexican television.

A former Mexico City mayor, Lopez Obrador has promised to root out corruption, and wants the contracts analyzed to ensure the process was not tainted.

Urzua and other members of the Lopez Obrador team, including his pick for chief of staff, Alfonso Romo, have said they do not expect the review to reveal acts of corruption.

Opening exploration and production of oil and gas to private capital was the centerpiece of outgoing President Enrique Pena Nieto’s economic agenda. The government says contracts worth billions of dollars in investment have been awarded.

Read more at Reuters.
 
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