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Statoil Foresees Further Mergers
“World Oil” reports that Eldar Saetre, the Chairman of Norwegian producer Statoil, foresees more merger and acquisition (M&A) activity in the wake of the Shell-British Gas deal. He feels that future M&A’s are especially likely if oil prices remain depressed. Currently, the biggest obstacle to more deals is the high valuation expectations of potential sellers. … Read More
Conoco “All In” on Shale
ConocoPhillips, the third largest oil producer in the U. S., is increasing its investment in North American shale plays by 50% over the next three years, according to a recent article in “World Oil”. While this might seem counter to prevailing trends in the industry, the company is doing so for a number of reasons.… Read More
Deferred Completions to Slow Domestic Supply Growth?
The current contango (expectation that future prices will exceed current ones) that exists in the crude oil market is providing a massive incentive to store oil. A recent article in “World Oil” cites analysis by Genscape Inc. which concludes that as conventional storage facilities near capacity, oil producers are storing oil in their own wells.… Read More
Shale Revolution Quelled?
A recent article in “World Oil” references the U. S. Energy Information Administration (EIA) prediction that tight oil production will decline by 57,000 barrels of oil per day (bopd) in May. With prices at a 6 year low, and the oil rig count cut in half, both Deutsch Bank AG and Goldman Sachs see at… Read More
Domestic Production Probably Peaking Now
A recent article in “Rigzone” cites a report by the U. S. Energy Information Administration (EIA) which predicts that domestic oil production will peak in April at 9.37 million barrels per day (MMbopd), plateau in May, and drop in June. The report predicts production continuing to drop to 9.04 MMbopd in September, and not getting… Read More
