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Zika and GTL
In previous posts I have talked about the overabundance of natural gas on the domestic market as a consequence of the shale revolution. This surplus gas has predictably led to low prices, which has in turn led operators to search for new markets. Pipeline sales to Northeast Canada and Mexico, liquefied natural gas exports, renewed… Read More
Oil Price and Economic Growth
“Oil Voice” recently featured an article by Kurt Cobb entitled, “Oil Price and Economic Growth get Married”. The author points out that the conventional wisdom has always been that cheap energy meant economic growth. However, he asserts that this is no longer valid and presents his rationale. The conventional wisdom ignores the fact that during… Read More
Innovation and Resilience
Domestic shale producers continue to demonstrate an impressive degree of resilience and creativity in finding ways to cut costs and enhance oil and gas production. As oil has dropped back down to near $40 per barrel, this will help them maintain economic viability. “Rigzone” reports that Noble Energy, Devon Energy, Occidental Petroleum and Pioneer Natural… Read More
2017 Rebound?
Recently, crude oil prices have been disappointing. However, an article in “World Oil” cites a study by Bloomberg which offers a good deal of hope for next year, especially for domestic shale producers. Admittedly, prices have been hammered by the double whammy of a crude glut on the upstream side of the business and a… Read More
Midland Basin Acquisition
“Rigzone” reports that SM Energy will buy Rock Oil Holdings LLC from Riverstone Holdings for $980 million. The transaction will almost double the purchaser’s Permian Basin footprint to about 46,750 net acres with 4,900 barrels of oil equivalent per day (boepd) net production and 6 million barrels of proved developed producing reserves. The acreage is… Read More
