Colorado oil and natural gas producers want to double the number of rigs and invest 70% more in exploration in the Denver-Julesburg Basin this year, particularly in Adams, Arapahoe, Larimer and Weld counties. However, drillers face challenges as they increase activity in areas such as Broomfield and Aurora, where opposition is fierce.
Royal Dutch Shell and Anadarko Petroleum may decide against renewing their 10-year Permian Basin joint venture agreement, set to expire this summer, in a bid to accelerate development of their respective activities in the area. One proposed course of action involves dividing the land between the two sides into "two 100% owned and operated parcels," said Greg Guidry, head of Shell's unconventional business.
The number of US oil rigs increased by 21 to 652 in the week ended Friday, the 10th consecutive week of gains, according to Baker Hughes. The natural gas rig count dropped by two to 155, while the number of miscellaneous rigs climbed by one to two.
Oilfield service giants Schlumberger and Weatherford on Friday announced OneStim, a North America-focused joint venture that will provide services and technologies related to the process of producing shale oil and natural gas, such as hydraulic fracturing. The joint venture will be 70% owned by Schlumberger, with Weatherford set to receive $535 million from its joint venture partner.
Anadarko Petroleum cut 60 jobs last week following the company's sale of its Eagle Ford Shale assets to Sanchez Energy and the Blackstone Group for $2.3 billion. The asset package included 155,000 net acres in Texas' Dimmit and Webb counties with daily production of 45,000 barrels of oil and 131 million cubic feet of natural gas.
The Pennsylvania Department of Environmental Protection's time frame for approving drilling permit applications is getting longer, hurting the state's ability to compete with other shale-producing states such as Ohio, West Virginia and Louisiana, said Marcellus Shale Coalition President David Spigelmyer. In response, the department vowed to improve the permitting process.
US oil refining executives renewed their efforts to persuade the Trump administration to change the point of obligation under the Renewable Fuel Standard from refiners to marketers in a March 16 meeting with President Donald Trump's senior energy aide Michael Catanzaro, sources say. Executives argued that the burden was too much for the refining industry.
The State Department approved a construction permit for TransCanada's Keystone XL pipeline project on Friday after being first proposed in 2008. TransCanada still needs to secure approvals from states, where it might encounter legal hurdles.
The Tennessee Valley Authority shouldn't sign a power purchase agreement with Clean Line Energy Partners' 700-mile Plains and Eastern Clean Line because its unnecessary and would increase electricity costs, said Sen. Lamar Alexander, R-Tenn. Clean Line Executive Vice President Mario Hurtado said the line is actually a privately financed infrastructure project and would create jobs while reducing electricity rates.
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