Oil Production News

15 Nov 2019

US Shale Sector Performs Well

Graph: Rystad Energy

U.S. shale operators are on track to grow 2019 oil production by around 16% over 2018 thanks to impressive operational execution so far this year.The third quarter earnings season revealed that shale companies increased their oil production by about two percent, all while cutting the midpoint guidance for yearly drilling and completions expenses, according to Rystad Energy.The energy research and consulting firm headquartered in Norway said that U.S. shale operators will continue expanding in the fourth quarter…

13 Nov 2019

Hackers Demand $5M from Pemex

copyright Leo Lintang/AdobeStock

Hackers demanded about $5 million in bitcoin from Mexico's Pemex, they told Reuters on Tuesday, saying the state oil firm missed a special discount by not paying immediately after a cyberattack that fouled up the company's systems.The hack, which Pemex said it detected on Sunday, forced the company to shut down computers across Mexico, freezing systems such as payments, according to five employees and internal emails.Hackers have increasingly targeted companies with malicious programs that can cripple systems overseeing everything from supply chains to manufacturing…

24 Oct 2019

Brazil to Lead in Global FPSO Deployments

Graphs: GlobalData

Brazil continues to drive global floating production storage and offloading vessels (FPSOs) deployment with 21 planned and announced FPSOs during the period 2019 to 2025, according to GlobalData.Brazil is expected to deploy a total of 11 planned and ten announced FPSOs by 2025. The crude oil production capacity of these upcoming FPSOs is expected to be 2.5 million barrels per day (mmbd) during the outlook period. In Brazil, FPSOs are being deployed to develop hydrocarbons in the Santos and Campos basins.Brazilian state-controlled oil…

13 Oct 2019

Teekay Extends Hummingbird Spirit FPSO

Pic: Teekay Corporation

Teekay Corporation, a provider of crude oil and gas marine transportation services, has entered into an agreement with the Chestnut Joint Venture to extend the employment of the Hummingbird Spirit FPSO unit (Hummingbird) on the Chestnut field in the North Sea until March 2023.Chestnut is  a joint venture between Spirit Energy Ltd. and Dana Petroleum Ltd.The contract extension was done in conjunction with the Chestnut Joint Venture’s plan to drill a new well at the Chestnut field.The new Hummingbird contract took effect on October 1…

08 Oct 2019

NAT Bullish on Tanker Market

Picture courtesy: NAT

Bermuda-headquartered Nordic American Tankers (NAT) said that its tanker segment is on upswing mode following he strong market improvement for its Suezmax tankers."However, seeing is believing and if anyone had doubts, last week, the international shipbroking firm of Clarkson Platou Research reported the largest week-on-week increase in the history of their freight index,"pointed out the company.From Thursday to Friday last week, reported Suezmax rates jumped 60% on the day and 400% on the month…

04 Oct 2019

VLCC Rates Surge as U.S. Sanctions COSCO

File Image: AdobeStock / © Carabay

Freight rates to ship U.S. crude to Asia continued to surge, with costs to charter a supertanker rising to a record $12 million on Thursday, shipping sources familiar with the matter said.South Korea's top refiner, SK Energy, tentatively chartered the supertanker Maxim to ship U.S. crude to South Korea in November for a record $10 million earlier in the week but that fixture has since failed, the sources said.The company now has conditionally booked the Pacific M at a new record of $12.35 million…

03 Oct 2019

Chevron Sets New Goals for Greenhouse Gas Reduction

Image: Chevron

American multinational energy giant Chevron Corporation unveils new goals to reduce oil production-related greenhouse gas (GHG) emissions by 5% to 10% over a seven-year period ending 2023 as part of an ongoing effort to combat global climate change.The GHG emission intensity reduction metrics apply to all upstream Chevron oil and natural gas, whether Chevron has operational control or not. Emission intensity is the emission rate of greenhouse gas per unit of energy produced.“Global demand for energy continues to grow…

20 Sep 2019

Saudi Attacks, High Demand Leaves U.S. Short on Oil Tankers

© Carabay / Adobe Stock

A disruption in global oil flows following attacks on Saudi Arabian facilities has left U.S. crude exporters without enough tankers to cover rising demand for cargoes, traders and shipping sources said.Missile attacks last Saturday temporarily cut Saudi oil production by more than 5 million barrels per day, or about half the country's output.That set off a scramble for alternative cargoes of crude, particularly in the United States, which lined up available tankers sailing from the Mediterranean, West Africa and continental Europe to pick up cargoes.

17 Sep 2019

China's Unipec Ramps Up U.S. Crude Shipments

Unipec, the trading arm of Asia's top refiner Sinopec, chartered at least four crude tankers this week from the United States, ramping up purchases after attacks on Saudi Arabia's oil facilities and as trade tensions between the world's two largest economies cool, sources said.Three Aframax vessels that can carry about 750,000 barrels, and one supertanker that can carry about 2 million barrels of crude, have been fixed by Unipec tentatively, according to a shipping source and Refinitiv Eikon data.The attack on Saudi oil facilities Saturday knocked out half of Saudi Arabia's oil production, or 5% of global output, sending prices soaring when trading resumed on Monday. (Reporting by Devika Krishna Kumar in New York Editing by Chizu Nomiyama)

15 Sep 2019

Non-Opec Supply Set to Surge

Graph: Rystad Energy

Liquid production growth for non-OPEC countries reached the highest rate on record in 2018, with a growth of almost 2.9 million barrels per day (bbl/d).For this year, the trend suggests that non-OPEC countries’ liquid production will reach above 2 million bbl/d once again, led by tight oil.Rystad Energy expects liquid production growth of non-OPEC countries will continue reaching record highs in 2020. However, despite strong tight oil production, offshore will have a much greater…

12 Sep 2019

ION Wins 2D Multi-Client Gig Offshore West Africa

Image: ION

ION Geophysical Corporation, a technology focused company that provides geophysical technology, services and solutions to the global oil and gas industry, announced a new 2D multi-client program offshore West Africa.The industry-supported NamibeSPAN program covers the under-explored Namibe basin offshore southern Angola. The dataset integrates ION BasinSPAN programs in the area, forming a contiguous regional exploration framework in excess of 65,000 km along the West African coast. The program is the conjugate tie with offshore Brazil.

28 Aug 2019

BP Exits Alaska with $5.6Bln Sale

Aerial view of BP Alaska's Prudhoe Bay operations. Photo: BP Images

British oil major BP Alaska announced that it is selling its entire business to Hilcorp Alaska, marking the exit from Alaska after six decades.The $5.6 billion sale includes Opens a New Window. interests in the Prudhoe Bay oil field, Point Thomson gas field and the trans-Alaska pipeline system, BP said in a release.Bob Dudley, BP group chief executive, said: "Alaska has been instrumental in BP's growth and success for well over half a century and our work there has helped shape the careers of many throughout the company.

22 Aug 2019

US Shale Operators Achieves Positive Cash Flow

Graph: Rystad Energy

In a remarkable turnaround, the second quarter of 2019 is the first three-month period on record when US shale operators achieved positive cash flow from operations after accounting for capital expenditures, according to Rystad Energy.Rystad Energy has studied the financial performance of 40 dedicated US shale oil companies, focusing on cash flow from operating activities (CFO). This is the cash that is available to expand the business (via capital expenditure, or capex), reduce debt…

21 Jun 2019

Modec Signs LOI for FPSO with Petrobras

Image: MODEC

MODEC Inc. received a letter of intent (LOI) from Petróleo Brasileiro for the supply, charter, and operations of a Floating Production Storage and Offloading (FPSO) vessel for the Búzios field.The firm time charter period of the contract is 21 years, it said in a press release.The new LOI will be the fifth FPSO deployed at the Búzios field, however it is the first chartered production unit for the region. Búzios is one of the offshore oil and gas fields in Brazil which forms part…

14 Jun 2019

US Leads World Oil Reserves

Graph: Rystad Energy

The United States has a world-leading 293 billion barrels of recoverable oil resources, which is 20Bbbl more than Saudi Arabia and 100Bbbl more than Russia, with the Permian Basin leading that charge.Rystad Energy’s estimate of US recoverable oil is also five times more than officially reported proven reserves as published in the BP Statistical Review of World Energy 2019.Tight oil plays in the Permian Basin in Texas and New Mexico now hold 100 billion barrels of recoverable oil resources, according to Rystad Energy’s analysis.

18 Aug 2019

Gazprom Oil Touch 100mln Barrels at Badra

Badra field. Wasit Province, Eastern Iraq. Pic: Gazprom Neft

Russian oil producer Gazprom Neft said that its subsidiary Gazpromneft-Badra has now produced 13.5 million tonnes — or 100 million barrels — of oil in Iraqi oil field.Cumulative production at the Badra field in the five years since this asset went into commercial operation has reached 100 million barrels — the first shipment of liquid hydrocarbons having taken place in 2014. Oil production at the field stands at more than 1.8 million tonnes (13.5 million barrels) since the start of 2019.Twenty-two operating wells…

24 Jun 2019

Teekay, Alpha Petroleum FPSO Deal Terminated

File Pic: Teekay Offshore Partners

Teekay Offshore Partners, midstream services provider to the offshore oil production industry, said that the agreement with Alpha Petroleum signed in October 2018 for Teekay’s Petrojarl Varg vessel to operate on Alpha’s 100%-owned Cheviot field was terminated.Teekay revealed that deal was off, claiming Alpha had been unable to satisfy key conditions.The floating production, storage and offloading (FPSO) contract to operate on the Cheviot oil field on the UK continental shelf was for a seven-year fixed term from first oil…

19 Jun 2019

OPEC Output to Remain Flat: Rystad

Photo: OPEC

OPEC and its allies, including Russia, can maintain their current cuts and not reduce outputs any more because there will be a crude oil demand surge later this year from changing shipping fuel standards worldwide.The OPEC+ countries will not be able to increase their collective oil production levels in the second half of 2019 without having a detrimental effect on oil prices. However, the production cuts required by OPEC+ in order to support prices need not be as much as 1.5 million barrels per day (bpd)…

07 Jun 2019

US Oil Output Heads for More Records in 2019

Graph: Rystad Energy

U.S. total oil production, which is already off to an amazing start in 2019,  is on track to set another record for this year.New records are expected both when the final numbers for May emerge and at the end of the year, said Rystad Energy.The energy research and business intelligence company is raising its forecast for US crude output to 13.4 million barrels per day (bpd) by December 2019. For May 2019, our research and calculations point to crude oil production averaging 12.5 million bpd. Both are new all-time highs.“Our US supply projections have been revised up yet again.

12 Jul 2019

Big Easy Braces for Barry Flooding; Emergency Declared

file image: AdobeStock / © mode list

New Orleans braced for severe flooding with residents told to hunker down as a growing tropical storm in the U.S. Gulf of Mexico headed for landfall late on Friday or early on Saturday as the first Atlantic hurricane of 2019.U.S. President Donald Trump declared a state of emergency for the state of Louisiana late on Thursday, hours after the region's oil production was cut by half as energy companies evacuated offshore drilling facilities and a coastal refinery.Tropical Storm…

16 Jul 2019

US Gulf Production Restarting After Barry

(Photo: BP)

U.S. oil companies on Monday began restoring some of the more than nearly 74% production shut at U.S. Gulf of Mexico platforms ahead of Hurricane Barry, the U.S. offshore drilling regulator said.There was 1.3 million barrels per day (bpd) of oil production off line in the U.S.-regulated areas of the Gulf of Mexico on Monday, about 80,000 barrels less than on Sunday, according to the U.S. Bureau of Safety and Environmental Enforcement (BSEE).Workers also were returning to the more than 280 production platforms that had been evacuated.

30 Jul 2019

USCG Investigating Offshore Facility Fatalities

Rear Adm. John Nadeau, who recently took command of the Eighth Coast Guard District in New Orleans

Rear Adm. John Nadeau, who recently took command of the Eighth Coast Guard District in New Orleans, convened a formal investigation last week for the incident that occurred onboard the offshore production facility Auger, June 30, 2019.Crewmembers aboard the Auger were testing the facility’s lifeboat recovery system when a malfunction occurred resulting in the loss of two lives. The Auger is located 210 miles southwest of New Orleans and is responsible for the production of oil.“The Coast Guard is committed to finding the facts that led to this tragedy,” said Nadeau.

07 Aug 2019

Permian Fracking Sets New Records

Graph: Rystad Energy

Hydraulic fracturing operations in the Permian shattered old records in June. The prolific shale basin in Texas and parts of New Mexico in the US has reached new heights in terms of the number of fracked wells – both on a daily basis and in terms of absolute monthly wells. Rystad Energy estimates there were as many as 18 wells fracked per day across the entire Permian Basin, or almost 550 wells during the month of June. Previously, fracking in the Permian peaked at approximately 520 wells fracked in August 2018…

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