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500,000 bopd ‘Fracklog’?
A recent article in “World Oil” cites analysis by Bloomberg Intelligence which indicates that the ‘fracklog’ (inventory of drilled and cased but uncompleted wells or DUC’s) could total 4,731 wells capable of producing 500,000 barrels of oil per day (bopd). This would be more than the annual production of the nation of Libya. Some industry… Read More
Crude Oil Price Drivers
In today’s current and volatile market it is tempting to get caught up in daily price fluctuations and the reasons for short term swings. For a capital intensive industry such as energy, with long lead times from prospect generation to actual hydrocarbon sale, it is beneficial to step back and take a look at strategic… Read More
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
