Ernest's Feed
Apr 20, 2015

Evoking Iran, U.S. senator pushes for oil exports

HOUSTON, April 20 (Reuters) – Senator Lisa Murkowski
(R-Alaska) said on Monday she will introduce legislation this
year to allow U.S. crude exports, saying the Obama
administration shouldn’t dare lift sanctions on Iran before
scrapping the U.S. crude export ban.

“It’s time to lift America’s ban on crude oil exports,”
Murkowski said at IHS CERAWeek conference in Houston, the
world’s largest annual gathering of oil executives.

Apr 20, 2015

‘Ducks’ and oil: no need to fear US crude supply deluge

HOUSTON, April 20 (Reuters) – Conventional wisdom holds that
come June a pending $5.3 billion tax break in the No. 2 U.S. oil
producing state, combined with a modest uptick in oil prices,
will unleash a tsunami of new shale crude supply so big that
prices may slump again.

Just one problem with that scenario: oil producers say this
is not going to happen.

Apr 17, 2015

Big U.S. investors push SEC for oil industry to detail risks of climate change

, April 17 (Reuters) – Calpers, the largest
American public pension fund, and nearly 60 other institutional
investors will ask the U.S. Securities and Exchange Commission
on Friday to require oil and natural gas companies to publish
detailed analysis of the risks posed by climate change to their
business models.

The letter, also signed several U.S. state treasurers, asks
SEC Chair Mary Jo White to require oil producers to publish
“meaningful, substantive carbon asset risk disclosures,” much in
the way they already disclose information on factors outside
their control, such as commodity and currency price swings.

Apr 14, 2015

EOG has lion’s share of 900 North Dakota wells awaiting fracking

, April 14 (Reuters) – Oil producer EOG
Resources Inc has the lion’s share of an estimated 900
North Dakota wells waiting to be fracked, according to state
data, showing that even major oil titans are mothballing
operations while they hope for a rebound in oil prices.

For months the conventional wisdom in North Dakota’s Bakken
shale formation had been that smaller producers with weak cash
flow comprised the bulk of that estimate.

Apr 14, 2015

North Dakota’s oil output slips again on cheap crude prices

By Ernest Scheyder

WILLISTON, N.D. (Reuters) – North Dakota’s oil production slid for the second month in a row in February as falling crude prices zapped producers’ incentives to keep the spigots fully open, according to data released on Tuesday by the state’s Department of Mineral Resources.

Even more ominous for the No. 2 U.S. oil producer: While the number of producing wells in the state’s four most prolific counties jumped during February, the amount of oil output dropped in each of them.

Apr 8, 2015

Analysis – Shell’s BG purchase could be catalyst needed for U.S. shale deals

HOUSTON (Reuters) – Royal Dutch Shell Plc’s $70 billion (47 billion pounds) agreement to buy BG Group Plc (BG.L: Quote, Profile, Research) may be just the signal that other dealmakers need to make their own energy takeover bets, particularly in the U.S. shale sector.

Bankers and analysts say that Shell’s move is telling potential acquirers that one of the biggest players is now confident enough to make a big play – that the fears of a further big slide in oil and gas prices may be fading.

Apr 8, 2015

Shell’s BG purchase could be catalyst needed for U.S. shale deals

HOUSTON (Reuters) – Royal Dutch Shell Plc’s $70 billion agreement to buy BG Group Plc (BG.L: Quote, Profile, Research, Stock Buzz) may be just the signal that other dealmakers need to make their own energy takeover bets, particularly in the U.S. shale sector.

Bankers and analysts say that Shell’s move is telling potential acquirers that one of the biggest players is now confident enough to make a big play – that the fears of a further big slide in oil and gas prices may be fading.

Apr 7, 2015

Oil-rich North Dakota county OKs $500 mln shopping hub

, April 7 (Reuters) – One of North Dakota’s
largest oil-producing counties has approved a $500 million
development with new stores, apartments and an indoor water
park.

The project shows that even with a 50 percent drop in crude
oil prices since last summer, developers see long-term
potential in building amenities to serve the state’s oil
counties, which the U.S. Census Bureau has ranked as one of the
country’s fastest-growing regions for the past four years.

Apr 7, 2015

CORRECTED (OFFICIAL)-Hess is mirroring Toyota manufacturing process to slash well costs

DENVER, April 2 (Reuters) – Oil producer Hess Corp
has turned to a manufacturing process developed by automaker
Toyota Motor Corp to cut costs and boost production as
crude oil prices lag.

Deploying a process called Lean manufacturing, and used by
only a handful of other oil producers, the move has shaved
roughly $400,000 off the cost of each North Dakota well in the
past eight months, a savings that comes even as Hess adds more
sand and frac stages on each well.

Apr 3, 2015

North Dakota oil producers complying with new treatment rules

By Ernest Scheyder

(Reuters) – North Dakota’s oil producers are complying with new safety standards that went into effect on Wednesday to remove as many volatile gases from crude as possible, state officials told Reuters.

The new rules require the more than 1.2 million barrels of oil extracted each day from the state’s Bakken shale formation be run through machines that remove ethane, propane and other volatile gases linked to recent crude-by-rail disasters in Quebec, Illinois and West Virginia.