LONDON (Reuters) – Could oil production from the Bakken formation in North Dakota and Montana rival output from Saudi Arabia’s supergiant Ghawar oilfield, the greatest oil-bearing structure the world has ever known?
Until recently, comparisons between the shale fields of the Bakken and Ghawar, which produces 5 million barrels per day, would have been dismissed as fanciful.
LONDON, Nov 8 (Reuters) – Some of the world’s largest
undiscovered oil and gas deposits lie under shallow seas on the
broad continental shelves off the northern coasts of Alaska,
Canada and especially Russia — a tantalising prize for the
major international oil companies, but once which has so far
“The extensive Arctic continental shelves may constitute the
geographically largest unexplored prospective area for petroleum
remaining on Earth,” according to the United States Geological
LONDON (Reuters) – “Elections have consequences, and Eric, I won,” President Barack Obama famously told House Republican Whip Eric Cantor shortly after his first inauguration in January 2009.
Four years later, Wall Street as well as the oil and gas industry will return to work today knowing that they heavily backed the losing side and now have very little political capital with the re-elected Obama administration and the Democratic majority in the U.S. Senate.
LONDON (Reuters) – Steelmaker Nucor will help protect expansion of U.S. iron and steel making capacity against an expected future rise in U.S. natural gas prices by taking a 50 percent working interest in onshore gas wells to be drilled and operated by Encana.
The agreement builds on an earlier, smaller agreement between the two companies struck in 2010. But the increased number of wells covered offers Nucor much more protection against future variations in the price of natural gas, which is one of the biggest input costs for its iron and steel operations.
LONDON (Reuters) – Some analysts still question the transformative impact of hydraulic fracturing and horizontal drilling on the oil industry. Doubters should pay a visit to Mountrail County, North Dakota.
Running little more than 40 miles from East to West, and 50 miles from North to South, with a population of 7,673, according to the North Dakota Association of Counties, Mountrail is at the epicenter of the largest drilling boom in the world. Mountrail has done more than any other place to remake the oil industry in the last decade.
LONDON (Reuters) – Hedge funds’ enthusiasm for U.S. crude has cooled off, at least for now, as the relentless rise in domestic shale output and the prospect of extended refinery maintenance in the Midwest extinguishes any hope of a rebound in U.S. oil futures to narrow the gap with Brent.
Hedge funds and other money managers cut their net long position in WTI-related futures and options to just 154 million barrels on October 30 from 260 million on September 18, according to the U.S. Commodity Futures Trading Commission (CFTC).
LONDON, Nov 2 (Reuters) – David Stockton’s gentle review of
forecasting at the Bank of England, published on Friday, does
not hide the cultural problems which have caused systematic
errors in the central bank’s inflation predictions and undercut
the credibility of its forecasting regime over the last five
Despite employing dozens of the brightest economists in the
country, and spending more than 66 million pounds ($106.5
million) on monetary analysis last year, the Bank has
consistently over-predicted growth and under-predicted inflation
LONDON, Oct 29 (Reuters) – As the Northeast United States
locks down in the path of Hurricane Sandy, the freakishly large
tropical storm careening in from the Atlantic, the main impact
is likely to be on fuel demand rather than supply.
Regional product prices initially rose on Monday, but the
storm is more likely to have a bearish impact later this week.
LONDON (Reuters) – North Dakota’s oil wells are some of the most expensive in the country, costing more than $8 million each to drill and complete. But the returns are among the highest, thanks partly to the valuable natural gas liquids (NGLs) being recovered alongside the crude and natural gas.
The associated gas bubbling up to the surface from the thousands of crude oil wells being drilled into the Bakken formation is laden with ethane, propane, butane and natural gasoline, that can be stripped out and sold separately from the methane put into the gas pipeline network.
LONDON, Oct 26 (Reuters) – Severe maintenance overruns at
Nexen’s Buzzard oilfield have highlighted the need for
a better regime for disclosing price sensitive information about
oil output and problems in the North Sea.
Buzzard’s delays have slashed output of the
benchmark-setting Forties crude stream in October – contributing
to a significant short-term rise in the price of crude and
refined products such as gasoline for customers across the EU.