Ernest's Feed
May 5, 2015

U.S. shale oil firms say refracking not the best path in downturn

By Anna Driver and Ernest Scheyder

HOUSTON/WILLISTON, N.D. (Reuters) – Refracking, the practice of fracking an oil and gas well a second time, is still too unpredictable to rely on as a way to slash costs and increase output during the oil price slump, top U.S. shale oil executives said on Tuesday.

Oilfield service companies, including Schlumberger NV and Baker Hughes Inc., have touted refracking as a cheap way to revive output from existing shale wells. Output from existing wells, measured in barrels per day, normally drops as much as 70 percent in the year of operation. Also, some wells were not thoroughly fracked the first time.

May 4, 2015

EOG Resources results beat Street on oil hedges

, May 4 (Reuters) – Oil and natural gas
producer EOG Resources Inc posted a better-than-expected
adjusted profit on Monday as hedges and cost cuts helped offset
low oil prices.

It was the continuation of a theme for U.S. shale oil
producers, including Whiting Petroleum Corp and Hess
Corp, who have aggressively curtailed spending and
relied in varying degrees on hedges all quarter.

May 1, 2015

Chevron profit beats expectations, cost cuts offset cheap oil

May 1 (Reuters) – Oil and natural gas producer Chevron Corp
reported a 43 percent drop in quarterly profit on
Friday, though results beat analysts’ expectations as cost cuts
and robust refining margins helped offset the impact of tumbling
oil prices.

The reliance on refining operations mirrored results at
large, integrated rivals Exxon Mobil Corp and Royal
Dutch Shell, as such companies tend to lean on their
refining divisions for profit during times of cheap oil.

May 1, 2015

North Dakota still on track for oil tax break

, May 1 (Reuters) – The clock kept ticking in
April on a suspension of North Dakota’s oil extraction tax after
a state-calculated average of the month’s crude price fell below
$52.59 per barrel for a fourth straight month.

The tax break, enacted in the 1980s, had the potential to be
worth more than $5 billion to oil producers over a two-year
period. However, sweeping tax changes signed into law late
Wednesday by Governor Jack Dalrymple effectively ended that boon
for the oil industry, though the new law also lowered the
overall permanent tax rate.

May 1, 2015

Chevron profit beats Street as cost cuts offset cheap oil

By Ernest Scheyder

(Reuters) – Oil and natural gas producer Chevron Corp (CVX.N: Quote, Profile, Research, Stock Buzz) reported a better-than-expected quarterly profit on Friday as cost cuts and strong refining margins helped offset the impact of lower oil prices CLc1 LCOc1, sending shares up in early trading.

The No. 2 U.S. oil company reported net income of $2.57 billion, or $1.37 per share, compared to $4.51 billion, or $2.36 a share, a year earlier.

Apr 30, 2015

Whiting would add rigs if oil prices hit $70 per barrel

, April 30 (Reuters) – Whiting Petroleum Corp
, the largest oil producer in North Dakota, plans to keep
11 drilling rigs operating through next year, though it would
add “a couple of rigs” if crude prices rise to $70 per
barrel, Chief Executive Jim Volker said on Thursday.

The company posted a smaller-than-expected quarterly loss on
Wednesday helped by sharp cost cuts. Volker told analysts on a
Thursday conference call that he plans to sharply cut spending
further later this year and that the company can survive with
oil prices at $50 per barrel.

Apr 29, 2015

Exclusive: North Dakota governor signs sweeping oil tax law

By Ernest Scheyder

WILLISTON, N.D. (Reuters) – North Dakota, the second-largest U.S. oil producer, has approved a sweeping reorganization of its oil tax code, cutting the overall rate and ending a tax break of more than $5 billion poised to hit in June.

Governor Jack Dalrymple signed the measure on Wednesday afternoon, his staff told Reuters, lowering the combined rate crude producers will pay by 1.5 percentage points.

Apr 29, 2015

North Dakota governor signs sweeping oil tax law

, April 29 (Reuters) – North Dakota, the
second-largest U.S. oil producer, has approved a sweeping
reorganization of its oil tax code, cutting the overall rate and
ending a tax break of more than $5 billion poised to hit in
June.

Governor Jack Dalrymple signed the measure on Wednesday
afternoon, his staff told Reuters, lowering the combined rate
crude producers will pay by 1.5 percentage points.

Apr 29, 2015

North Dakota governor signs sweeping oil tax changes into law

, April 29 (Reuters) – North Dakota, the
second-largest U.S. oil producer, has approved a sweeping
reorganization of its oil tax code by cutting the overall rate
and also ending a more than $5 billion tax break poised to hit
in June.

Governor Jack Dalrymple signed the measure on Wednesday
afternoon, his staff told Reuters, lowering the combined rate
crude producers will pay by 1.5 percentage points.

Apr 29, 2015

Whiting posts smaller-than-expected loss, aided by cost cuts

By Ernest Scheyder

WILLISTON, N.D. (Reuters) – Whiting Petroleum Corp (WLL.N: Quote, Profile, Research, Stock Buzz), North Dakota’s largest oil producer, posted a quarterly loss on Wednesday that was narrower than Wall Street expected as the company slashed spending amid a steep drop in crude oil prices CLc1.

Whiting’s sales price for its crude fell more than 50 percent during the quarter, forcing the company to curtail spending and sharply scale back operations to preserve as much cash as possible.