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Oxy Sells Bakken Acreage
“Rigzone” reports that Occidental Petroleum Corp. is selling roughly 300,000 acres in North Dakota’s Bakken shale. While Oxy is not strapped for cash, the sale will enable the company to remain cash neutral during the current industry downturn and concentrate on other plays. The Bakken assets were sold for $500 million to a private equity… Read More
Eagle Ford Gas
Apparently the Eagle Ford shale of South Texas is a microcosm of the domestic energy industry. “World Oil” reports that the same “retreat to the core” strategy is playing out in Karnes County as has been the case across the nation. As prices drop and funds become scarce, shale operators are devoting their remaining cash… Read More
Risk to Independents Exaggerated
A recent article in “World Oil” cites two studies by consulting firm, Wood Mackenzie, which concludes that the independent energy segment of the industry is not in imminent danger. Many industry commentators had predicted dire consequences for small oil and gas producers as a result of this Fall’s recalculation of reserves used in Reserve Based… Read More
No $100 Oil until 2020
“World Oil” reports that Nobuo Tanaka, former head of the International Energy Agency (IEA), predicts that oil prices will not reach $100 per barrel until 2020 to 2025. He anticipates depressed prices until U. S. shale production starts to decline. This, in conjunction with increasing demand from Asia and Africa, will enable prices to eventually… Read More
Demise of LNG?
We tend to think of oil, natural gas, liquefied natural gas (LNG), coal and nuclear energy as separate markets. Domestically, and in the short term, this is true. However, globally, and in the long term, these are all interrelated. Economists correctly contend that when a commodity’s price changes, it affects the prices of compliments and… Read More
