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Fraclog Economics
Given the recent recovery of crude oil prices, many industry observers are speculating what level will stimulate domestic production. This is especially relevant given the large inventory of drilled but uncompleted (DUC) wells in the U. S. A recent article in “World Oil” cites a study by the consultants at Rystad Energy of incremental completion… Read More
We’re Number 1!
We hear so much about low energy prices, falling rig counts, and decreasing oil production that it is easy to overlook the fact that the U. S. was still the world’s largest producer of petroleum and natural gas hydrocarbons in 2015. “World Oil” reports that based on U. S. Energy Information Administration (EIA) statistics, liquids… Read More
Bankruptcy and Mid-Stream Contracts
“Rigzone” reports that New York bankruptcy judge, Shelley Chapman, recently ruled that distressed exploration and production (E&P) companies can renegotiate their contracts for transportation and treatment services with midstream companies. This is a departure from what has been accepted industry practice. Previously, contracts between E&P operators and midstream companies to transport and process hydrocarbons from… Read More
LNG Growth Factors
With plentiful reserves and prolific wells that readily meet any increases in domestic demand, natural gas prices remain relatively weak. Liquefied Natural Gas (LNG) exports represent a new market for an abundant resource and hopefully will lead to stronger natural gas prices. Investors were quick to respond to the opportunity presented by LNG. Many projects… Read More
Supply Disruptions
“World Oil” reports that Australia and New Zealand Banking Group Ltd. (ANZ) sees supply disruptions sustaining the recent recovery in crude oil prices. With almost 2.5 million barrels of oil per day (MMbopd) removed from the global supply stream, and sustained demand, ANZ is currently bullish on oil. In fact, analyst Daniel Hynes thinks that… Read More
