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In the battle for the world’s biggest oil market, the U.S. has a new advantage

By Alex Longley on 1/20/2020 LONDON (Bloomberg) - The U.S.-China trade agreement is set to intensify the battle for the world’s most prized oil market. China’s imports of U.S. crude may reach 700,000 barrels a day or more this year, estimates from consultants show. That volume, 50% above the previous monthly record, would have put the U.S. among the top 10 suppliers to the Asian nation in the last month for which data is available. As U.S. exporters look to re-establish their trade with the world’s largest crude importer, American barrels will find themselves in fierce competition with supplies from regions that produce similar quality oil, like West Africa and the North Sea. It’s China’s appetite for that lighter, less sulfurous crude, as well as the possible removal of a 5% tariff, that’s likely to dictate exactly how much U.S. oil flows there. “If you look at the energy side it should translate into a rebound in Chinese imports of U.S. crude oil,” said Olivier Jakob, managing director of consultant Petromatrix GmbH in Zug, Switzerland. “If they come to realize what is written then a lot of the supply increase from the U.S. is going to go to China this year.” U.S. exports to China, which surged through July 2018, slumped as trade tensions between the two countries escalated. The Asian nation, which accounted for two-thirds of oil demand growth in 2019, imposed a 5% tariff on U.S. oil from September, making it less economical for refiners. Read...
EOG Resources sells saltwater disposal wells in New Mexico

EOG Resources sells saltwater disposal wells in New Mexico

Photo: Solaris Water Midstream LLC By Sergio Chapa - Published 4:00 am CST, Wednesday, January 8, 2020 Houston oil giant EOG Resources has sold nearly half of its saltwater disposal wells in the New Mexico side of the Permian Basin. EOG Resources confirmed the sale of 23 saltwater disposal wells and 300 miles of oilfield wastewater gathering pipelines in southeastern New Mexico to Dallas-based Oilfield Water Logistics. Financial terms were not disclosed but under the deal, EOG entered into a long-term contract with Oilfield Water Logistics for wastewater disposal services. In a statement, Oilfield Water Logistics CEO Chris Cooper said the deal compliments the company’s current operations and doubles its geographic footprint in the Delaware Basin, an area of the Permian Basin that includes parts of West Texas and southeastern New Mexico. Read...
Oil prices steady, on track for biggest yearly rise since 2016

Oil prices steady, on track for biggest yearly rise since 2016

Oil pumpjacks in the Permian Basin oil field are getting to work as crude oil prices gain. - Spencer Platt | Getty Images   CNBC.com - Published Mon, Dec 30 20199:38 PM ESTUpdated Mon, Dec 30 201910:24 PM EST - Reuters   Oil prices held steady on the final day of the year on Tuesday, heading for their biggest annual rise since 2016, supported by a thaw in the prolonged U.S.-China trade dispute and supply cuts. Brent crude futures for March delivery, the new front month contract, were at $66.66 a barrel, down 1 cent, by 0258 GMT. Brent for February delivery closed on Monday at $68.44 . U.S. West Texas Intermediate (WTI) crude for February was down 3 cents at $61.65. Brent has gained about 24% in 2019 and WTI has risen roughly 36%. Both benchmarks are set for their biggest yearly gain in three years, backed by a breakthrough in U.S.-China trade talks and output cuts pledged by the Organization of Petroleum Exporting Countries (OPEC) and its allies. Read more…  ...

Hew-Tex/Lone Ranger #1 SWD Drilling Report

  Lone Ranger #1 Well Tracking Chart.   HJ Daily Reports. 2019.12.18         Our RRC approved rate is 25,000 BPD @ max injection pressure of 6,000psiWe have finished our 20,000 Acid job and down our infectivity test and here are the results.Pumping Acid at a rate of 26 BPM or 37,440 BPD @ 1,600psiDisplacing Acid at a rate of 30 BPM or 43,200 BPD @ 2,000psi After allowing Acid to spend for 2 hours our Injection Test was conducted as follows:5 BPM or 7,200 BPD @ 95 psi10 BPM or 14,400 BPD @ 248 psi15 BPM or 21,600 BPD @ 450 psi20 BPM or 28,800 BPD @ 893 psi25 BPM or 36,000 BPD @ 1,485 psi30 BPM or 43,200 BPD @ 2,231 psi We have a very good SWD well and looks like we will have no problem going up to the 50,000 BPD rate as designed. Congratulations Folks!  2019.12.18         Standby.  Spot 4 single manifold and 2 lined frac tanks. Fill single manifold with2000 bbls FW. Cut mousehole 5′ in cellar and fab lid. Building cellar covers, pour ready mix cement in cellar to bottom of SOW. C/O blind flange on tree with 5 1/8″ 10M flange x 3″ 1502 with plug. PU trash on and surrounding location, load all misc items into trash trailer. Shut down for night. Petroplex Acidizing Company is rigging up on location making prep to Acidize well. 2019.12.17         Standby. Performed H5 test, witnessed by Field Inspector Steven Hayes of the TRRC.Installed piping, gauges, and needle valves on all casing valves. Dropped ball, allowed 37 minutes to fall, rupture pump out plug. Performed 2nd H5 test,...