Oil Production News

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.

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.

06 Jun 2019

Natural Gas Flaring Hits Record High

Graph: Rystad Energy

As spot prices in the region have remained near or below zero, natural gas flaring and venting in the Permian Basin in Texas and New Mexico reached a new all-time high in the first quarter of 2019, averaging as much as 661 million cubic feet per day (MMcfd).According to research conducted by Rystad Energy,  this widespread waste of a valuable commodity is the result of persistent infrastructure challenges, a lack of sufficient takeaway capacity and an unexpected outage on a key…

29 May 2019

Teekay Offshore Arranges $550mln Refinance

Image: Teekay Offshore

London-based international law firm Watson Farley & Williams (WFW) advised Teekay Offshore Partners  on two separate fleet refinancings with a combined value of US$550mln.First was a US$100m revolving credit facility (RCF) for the Piranema Spirit, Voyageur Spirit and Petrojarl Varg FPSO units. The previous credit facility matured at the same time with a balloon payment of US$35m.The new facility was funded by commercial banks and bears interest at LIBOR + 300 basis points with a three-year tenor and a profile of 5.5 years.Second was a US$450m RCF for sixteen shuttle tankers.

31 May 2019

US Oil Production Up, Needs More Pipelines

Graph: Source: U.S. Energy Information Administration liquids pipeline projects database

The rising domestic crude oil production in the United States has created a need for more pipeline capacity, revealed the US Energy Information Administration (EIA).EIA recently launched a new liquids pipeline projects database that tracks more than 200 crude oil, hydrocarbon gas liquids (HGL), and petroleum products pipeline projects."Rising domestic crude oil production has led to several changes in Gulf Coast crude oil supply and demand patterns, creating a need for more pipeline capacity…

24 May 2019

MISC Group Q1 Financial Results

One of MISC's LNG carriers at sea (CREDIT: MISC)

MISC has announced its financial results for the financial period ended March 31, 2019.Financial Highlights:Group revenue for the quarter ended March 31, 2019 was higher than the corresponding quarter ended March 31, 2018.Group profit before tax for the quarter ended March 31, 2019 was higher than the corresponding quarter ended March 31, 2018.Group Revenue, Operating Profit and Profit Before Tax for the Quarter Ended March 31, 2019Group revenue for the quarter ended March 31,2019 of $544 million was 12.7% higher than the corresponding quarter’s revenue of $482 million.

10 May 2019

U.S. Warns Merchant Ships of Iranian Threat

File Image: A U.S. Naval vessel on patrol (CREDIT: U.S. Navy)

U.S. commercial ships including oil tankers sailing through key Middle East waterways could be targeted by Iran in one of the threats to U.S. interests posed by Tehran, the U.S. Maritime Administration said in an advisory.The U.S. military said this week that a number of B-52 bombers would be part of additional forces being sent to the Middle East to counter what the Trump administration calls "clear indications" of threats from Iran to U.S. forces there. The Islamic Republic has dismissed the U.S. contention of a threat as "fake intelligence".In the advisory posted on Thursday, the U.S.

17 May 2019

North Sea Oil Production May Go Down

Graph: Rystad Energy

On top of production declines in Iran and Venezuela, ongoing OPEC cuts, Urals contamination outages in Russia and maintenance in Kazakhstan, North Sea production is also struggling, Rystad Energy said."Currently we see unplanned outages at Oseberg and Flotta with combined impact of 160,000 bpd. Furthermore, the North Sea is heading into maintenance season," said the energy research and business intelligence company."We forecast North Sea oil production to drop next month to the lowest level since August 2014 as Ekofisk goes into maintenance…

20 May 2019

Brookfield Eyes TeeKay Offshore Partners

Pic: Teekay Offshore Partners

Canada-based Brookfield Business Partners has made an offer to purchase the publicly traded units of Teekay Offshore Partners (TOP), midstream services provider to the offshore oil production industry,  that it doesn't already own.The offer was for $1.05/unit–shares are trading at that level now–no premium in the offer.Teekay confirmed that it has received an unsolicited non-binding proposal from Brookfield.The offshore company said the proposed deal is subject to a number of contingencies…

22 May 2019

U.S. Shale Oil Production to Grow 16%

Graph: Rystad Energy

United States shale operators are on track to increase oil production by 16 percent in 2019, according to analysis by energy research firm Rystad Energy.The growth in US onshore production from the first quarter through the fourth quarter could come in at around 1.1-1.2 million barrels per day (bpd), or 16% for the full year, according to Rystad Energy.After a paltry first quarter, depressed by weather effects, US shale players have over the past weeks assured investors that they will achieve previously communicated production targets…

23 May 2019

Tanker Market Faces Headwinds: Teekay

Pic: Teekay

Average crude tanker spot rates moderately increased during the first quarter of 2019, as some of the positive drivers from late 2018 continued into early 2019, said Teekay Tankers."These included high seasonal oil demand, the impact of winter weather delays, and relatively high global oil production prior to the full implementation of OPEC supply cuts," it said.However, spot tanker rates weakened as the quarter went on, and the market faces a number of near-term headwinds during the second quarter of 2019.The largest operator of mid-sized tankers including suezmax…

23 May 2019

Teekay Gets $450mln for Shuttle Tanker Fleet

Pic: Teekay

The midstream services provider to the offshore oil production industry Teekay Offshore Partners announced that in accordance with previously noted financing plans, it has secured a new $450 million revolving credit facility for sixteen shuttle tankers.The facility will be used to refinance the existing revolving credit facility dated September 8, 2017, currently fully drawn with outstanding amount of $445 million, and for general corporate purposes, it said ina press release.The…

08 May 2019

U.S. Energy Hits Records in 2018: EIA

Graph: U.S. Energy Information Administration

U.S. energy consumption, production, and exports have reached record highs in 2018, said U.S. Energy Information Administration (EIA).The United States produced a record amount of energy from various sources in 2018, reaching 96 quadrillion British thermal units (quads), an 8% increase from 2017. This increase in production outpaced the 4% increase in U.S. energy consumption, which also reached a record high of 101 quads.At the same time, U.S. energy exports increased 18% to a record high of 21 quads in 2018…

15 May 2019

Oil Spill at Statfjord

(Photo: Øyvind Hagen / Equinor)

An unspecified amount of oil was observed on the sea surface early Wednesday morning in connection with loading oil from buoy to shuttle tanker on the North Sea Statfjord field, Equinor announced.The loading operations were stopped when this was discovered, and the loading systems were shut down, the Norwegian energy company said.Efforts to map the extent of the oil observed on the sea surface are underway, Equinor added.Equinor said its emergency response organization has been mobilized…

11 Mar 2019

US to Lead Oil Supply Growth to 2024

Dr Fatih Birol (center) and IEA Oil Analyst Toril Bosoni (right) present the findings from Oil 2019 in Houston at CERA Week on 11 March 2019 (Photograph: Getty Images)

The United States is set to drive the global oil supply growth over the next 5 years, thanks to the strength of its shale industry, triggering a rapid transformation of world oil markets, according to the International Energy Agency (IEA).IEA said that oil exports from the United States will overtake Russia and close in on Saudi Arabia, bringing greater diversity of supply, by the end of the forecast.While global oil demand growth is set to ease, in particular as China slows down, it still increases an annual average of 1.2 mb/d to 2024, according to the report, Oil 2019.

01 May 2019

Teekay Gets Refinance for FPSO Fleet

Pic: Teekay

The international midstream services provider to the offshore oil production industry Teekay Offshore Partners announced  that it has secured a new $100 million revolving credit facility for the Piranema Spirit, Voyageur Spirit, and Petrojarl Varg FPSO units.The previous credit facility matured at the same time with a balloon payment of $35 million, said a press release from the company primarily focused on the ownership and operation of critical infrastructure assets in offshore oil regions of the North Sea…

20 Mar 2019

Ekofisk Shut Down: North Sea Output to Drop

Image: Rystad Energy

Oil production in the North Sea will drop by 330,000 barrels per day (bpd) month-on-month in June 2019 as Ekofisk closes for planned work, according to Rystad Energy’s latest forecast.“Production is expected to remain stable through April 2019, before dropping 80,000 bpd month on month in May 2019. The decrease will continue in June 2019 with an additional 330,000 barrels per day month-on-month drop, as we expect maintenance at Ekofisk feeding fields to impact output by 220,000 bpd…

11 Apr 2019

Gazprom’s Arctic Offshore Platform Hits Milestone

Image: Sovcomflot (SCF Group)

Russian shipping company Sovcomflot (SCF Group) said that the Arctic shuttle tanker Mikhail Ulyanov loaded the milestone 10-millionth tonne of commercial oil produced at Prirazlomnaya offshore platform in the Pechora Sea.The energy shipping companies, specialising in the transportation of crude oil, petroleum products, and liquefied gas, as well as the servicing of offshore oil and gas exploration and production said that this cargo of oil has become the 150th shipped from the platform since the transportation began in April 2014.Symbolically…

29 Mar 2019

Port of Corpus Christi Readies VLCC Terminal

Pic: Port of Corpus Christi

The fourth-largest port in the United States in total tonnage, Port of Corpus Christi has leased land where it hopes to build the nation's first export terminal to load very large crude carriers (VLCC).The Port of Corpus Christi Commission approved today a long-term (50-year) lease agreement with Lone Star Ports, a joint venture between the Carlyle Group and the Berry Group, for approximately 200 acres on Harbor Island to develop a state-of-the-art petroleum export terminal.Featuring the latest in safety, security and environmental technologies, the facility will connect U.S.

08 Mar 2019

US to Overtake Saudi in Oil Exports

Graph: Rystad Energy

United States will soon export more oil and liquids than Saudi Arabia, thanks to the continued rise in oil production from US shale plays and the increased oil export capacity from the Gulf Coast.According to Rystad Energy, energy research and business intelligence company, it is a a pivotal geopolitical shift. The US has for decades relied on large-scale imports to satisfy its thirst for oil, but this is about to change.The Energy Information Administration (EIA) reported last week that the United States exported more crude and petroleum products than it imported.

04 Apr 2019

Teekay Secures Loan for Shuttle Tanker Newbuilds

Pic: Teekay

International midstream services provider, Teekay Offshore Partners announced that it has secured a new $414 million long-term debt facility that will be used to finance four LNG-fueled Suezmax DP2 shuttle tanker newbuildings.Upon delivery in 2019 and 2020, two of the vessels will commence operations under the Partnership’s Master Agreement with Equinor, while the remaining two vessels will join the Partnership’s contract of affreightment (CoA) shuttle tanker portfolio in the North Sea…

08 Apr 2019

OSV Market: Which Way is Up?

OSV "THUNDER" owned by Jackson Offshore serving floater "DEEPWATER CONQUERER"
Source: Jackson Offshore

Any analysis of markets for offshore service vessels (OSV) usually begins with analogies to rough weather, best of times/worst of times or similar. OSV expert Seabrokers, with a home base in Stavanger, Norway, in the February edition of its Seabreeze market report follows this convention with a description of the “feast or famine” conditions in the North Sea. Recent day rate action highlights the localized nature of markets for anchor handlers (AHT), platform supply vessels (PSVs) and similar equipment…

11 Apr 2019

Teekay Gets ECA-backed Newbuild Loan

Image: Teekay Offshore Partners

Teekay Offshore Partner, a marine energy transportation, storage & production company, has signed for a shipping export credit agency (ECA)-backed US$414m debt facility to fund four LNG-fuelled newbuild shuttle tankers.Watson Farley & Williams (WFW) is advising its long-standing client Teekay on this ECA-backed newbuild loan, noted a release.The facility, which bears interest at Libor plus 225 basis points for up to 12 years from each delivery, is funded and guaranteed by both…

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