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OPEC and its allies agree to deeper production cuts to prop up oil prices

London (CNN Business) - OPEC, Russia and other oil producing nations have agreed to deeper production cuts in an attempt to support crude prices in the face of a looming supply glut mainly due to booming US output.

Following a meeting in Vienna, OPEC said Friday the producer group would reduce supplies by an additional 500,000 barrels per day, bringing the total cuts to 1.7 million barrels daily.

Led by Saudi Arabia, OPEC and its allies have been limiting their production since 2017. Their existing agreement aimed to remove 1.2 million barrels per day from world markets and is due to expire in March 2020.

OPEC’s statement made no mention of extending the cuts through June or even December 2020, as some analysts had expected. Still, oil markets were supported by news of the additional cuts and pushed US crude prices up by 0.8% to $59 a barrel. Read more…

Drilling Down: Top 10 drilling rig companies in Texas and their customers

Some 368 horizontal drilling rigs are in operation in Texas, and more than half of them belong to three drilling companies.

In figures exclusively provided to the Houston Chronicle, the Austin oilfield data firm Enverus reports that Tulsa-based Helmerich & Payne is the top drilling rig operator in Texas with 117 horizontal rigs deployed across the state.

Nabor Industries, a drilling rig operator headquartered in Bermuda with principal offices in Houston, ranks second with 42 active horizontal rigs. Calgary oilfield service company Ensign Energy Services ranks third with 33 horizontal drilling rigs deployed in Texas. Read more…

 

Oil gains as optimism returns to US-China trade talks

Workers cross walkways between zones aboard an offshore oil platform in the Persian Gulf’s Salman Oil Field, near Lavan island, Iran, on Jan. 5. 2017.
Ali Mohammadi | Bloomberg | Getty Images

Oil prices rose on Tuesday on hopes of progress towards a trade agreement between the United States and China, the world’s biggest oil users, and predictions of a draw on U.S. crude inventories.

Brent crude, the international price benchmark, gained 34 cents, or 0.5%, to trade at $63.99, while West Texas Intermediate crude gained 23 cents, or 0.4%, to trade at $58.24 a barrel. Read more…

Drilling Down: Shell drills on state-owned lands in Permian Basin

 
European oil major Royal Dutch Shell filed for six horizontal drilling permits with the Railroad Commission of Texas for projects on five leases split between Winkler and Loving counties in the Permian Basin.

Half of those wells target the Wolfcamp geological layer while the others target the Bone Spring formation. Total drilling depths of the projects range from 10,000 to 12,300 feet.

Three of the wells are on a pair of leases in Winkler County managed by the state-owned mineral rights company University Lands. Royalties from those three wells will go to the Permanent University Fund, or PUF, a public account supporting the University of Texas and Texas A&M University systems. Read more…

Oil hits two-month high on hopes of longer OPEC cuts, continuing US-China talks

A man working in a filling station of Sinopec, China Petroleum and Chemical Corporation, in Shanghai, China, on March 22, 2018.
Johannes EIsele | AFP | Getty Images

Oil prices rose more than 2% on Thursday following a Reuters report that OPEC and its allies are likely to extend output cuts until mid-2020, while fresh signs emerged that China had invited U.S. trade negotiators for a new round of talks.

Brent crude futures gained $1.57, or 2.5%, to settle at $63.97 a barrel, while West Texas Intermediate crude futures surged to a two-month high, gaining 2.8% to settle at $58.58, according to Dow Jones.

To support oil prices, the Organization of the Petroleum Exporting Countries and its allies are likely to extend output cuts to June when they meet next month, according to OPEC sources. Read more…

Analyst: Almost 1,000 more salt water disposal wells needed by 2030

Raymond James & Associates analyst Marshall Adkins told clients Monday that Permian Basin will need almost 1,000 additional salt water disposal wells by 2030. Recycling efforts currently can’t handle the 17.5 million barrels per day of “dirty” water produced in the Permian Basin, Adkins said. “As crude production grows, produced ‘dirty’ water grows even faster. As the Permian Basin shifts further into manufacturing mode, the water growth we project will create the need for nearly 1,000 additional salt water disposal wells by 2030.”

The Race To Save $100 Billion – A Digital Revolution In Oil

OilPrice.com:

In a new in-depth study, Rystad Energy estimates that as much as $100 billion can be eliminated from E&P upstream budgets through automation and digitalization initiatives in the 2020s. Service companies are reinventing themselves to help operators unlock these savings.

In 2018, $1 trillion was spent on operational expenditures, wells, facilities and subsea capital expenditures across more than 3,000 companies in the upstream space. There are varying degrees of potential savings within offshore, shale and conventional onshore activity budgets, but in total, around 10% of this spend can be erased through more efficient and productive operations thanks to automation and digitalization.

“Many key industry players are setting optimistic goals, but the realization of these initiatives largely depends on how freely data is shared amongst companies and how commercial strategies are deployed to drive this development. Because of this, it could be years before we see full adoption. However, based on our analysis of 2018 capital spend and operational budgets, we believe savings could easily reach $100 billion,” says Audun Martinsen, head of oilfield services research. Read more…

Drilling Down: Denver saltwater disposal well operator makes Permian Basin push

Houston Chronicle:

Denver oilfield water company Felix Water is seeking permission to drill 13 injection wells on its Pbar SWD lease in Loving County. Photo: Courtesy Photo / Felix Water LLC

Water remains a big issue in the arid Permian Basin of West Texas where for every barrel of oil produced, another four to 10 barrels of saltwater — the remnants of an ancient inland sea — come out of the ground.

Over the past week, six companies filed 20 drilling permits to develop saltwater disposal, or injection, wells in the West Texas shale play.

Denver oilfield water company Felix Water led the pack by seeking permission to drill 13 injection wells on its Pbar SWD lease in Loving County. Occidental Petroleum-owned APC Water Holdings is seeking to develop another three saltwater disposal wells in Reeves County. Read more…

Saudi Arabia Has a New Energy Minister: What It Means for Oil

Bloomberg.com: By - Updated on

Prince Abdulaziz Bin Salman
Photographer: Joe Klamar/AFP via Getty Images

Saudi Arabia’s King Salman Bin Abdulaziz named his son Prince Abdulaziz as the country’s energy minister, replacing Khalid Al-Falih, who led three years of active OPEC diplomacy to forge a global alliance with producers such as Russia to limit production in order to prop up prices. Will this change the policy, or will it affect Saudi Aramco’s plan for an initial public offering?

Who is the new minister in charge?

Prince Abdulaziz served as deputy petroleum minister for a dozen years and most recently as minister of state for energy since 2017. He is an older half-brother of the influential Crown Prince Mohammed bin Salman, though the pair aren’t believed to be close and are quite far apart in age. Prince Abdulaziz’s years in the ministry prepare him for the top role.

Oil rises 0.1% to $56.30 as US inventories decline

An Iraqi worker gauges gas emissions from an oil pipe at the Daura oil refiner - Getty Images

Oil prices ticked higher on Thursday amid a sharp decrease in U.S. crude inventories and investor hopes of progress in resolving the U.S.-China trade feud.

Global benchmark Brent crude gained 16 cents, or 0.2%, to $60.86 a barrel. U.S. West Texas Intermediate (WTI) crude added 4 cents, or 0.1%, to $56.30 a barrel.

U.S. crude, along with gasoline and distillate inventories, fell last week. Crude stocks dropped 4.8 million barrels, which was more than the 2.5 million barrel draw analysts had expected, the Energy Information Administration said.

Net U.S. crude imports, however, rose last week by 934,000 barrels per day. Read more…

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