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Majors Move to Shale
Shale has long been the realm of the independent oil companies. With the exception of ExxonMobil’s 2010 purchase of XTO Energy, the major oil companies stuck to megaprojects with massive capital budgets in remote or deep water locations, with long lead times, but decades of cash flow. Conversely, wildcatters like Harold Hamm and Aubrey McClendon… Read More
LNG Success
During the shale revolution operators were finding gas faster than traditional domestic markets could absorb it. Consequently, some investors saw LNG (Liquefied Natural Gas) exports as a lucrative opportunity. Liquefaction, transportation and regasification facilities are capital intensive and require long lead times for construction. While a number of projects are currently underway in the U.… Read More
Oil Deficit by Mid-Year?
The global oil glut has been with us for so long that we are starting to assume that it is part of the long-term energy landscape. This oversupply has hung like the Sword of Damocles over oil markets and is a strategic threat to any sustained improvement in oil prices. However, “Rigzone” reports that no… Read More
Downside for Natural Gas
Recently several industry observers have expressed optimism for natural gas prices. Currently, prices are stable and there are potential upsides. Demand for gas for power generation is strong and growing. LNG exports, as well as gas sales to Mexico via pipelines, continue to grow. An unseasonably hot summer could be an added bonus. On the… Read More
Rising Crude Exports
“World Oil” reports that Mike Loya, with crude trading firm Vitol, predicts a significant increase in U. S. crude oil exports. Vitol, which shipped the first cargo of domestic crude after the 40-year old export ban had been lifted, notes that exports already reached 1.21 million barrels of oil per day (bopd) in February. Loya,… Read More
