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LNG via Panama Canal
“World Oil” reports that the first cargos of U. S. origin Liquefied Natural Gas (LNG) will enter the Panama Canal this week. This is significant for several reasons. Exports of LNG will expand the market for domestic natural gas and help firm, or hopefully improve, prices. Also, with the expansion of the Panama Canal, LNG… Read More
Devon’s STACK Success
According to “World Oil”, the hits keep on coming for Devon Energy Corp. in Oklahoma’s STACK (Sooner Trend Anadarko Basin Canadian and Kingfisher Counties) play. The record setting Pony Express 27-1H well in Southwest Kingfisher County sustained production of 2,100 barrels of oil equivalent per day (boepd), 70% of which was oil. Now, the operator… Read More
Price Retreat Possible
“Rigzone” reports that some industry analysts fear that the oil price recovery is running out of steam, and we might be faced with a reversal. In the first half of this year, falling domestic output, supply disruptions overseas, and rising demand enabled prices to flirt with $50. Now, as the U. S. rig count is… Read More
Rystad Energy’s Perspective
“Oil Voice” recently published an article by consulting group Rystad Energy in which the authors shared their perspective on the first half of 2016 and their forecast for the second. They note that when oil prices approached $50 per barrel in June, some operators immediately began activating rigs in the most prolific shale areas. Concho… Read More
Morgan Stanley’s Warning
When oil prices collapsed, rigs counts, and ultimately production, followed suit. “World Oil” reports that Morgan Stanley now warns that the reverse might be taking place. The investment banking firm cautions that as prices recover, rig counts and production will increase, threatening any price improvement. Adam Longson, who led the Morgan Stanley analysis, notes that… Read More
