A partnership focusing on the acquisition of oil and natural gas assets in South Texas' Eagle Ford Shale region has been announced by KKR & Co. and Venado Oil & Gas. Terms of the agreement were not disclosed, but a KKR spokesperson said acquisitions will be funded by KKR's Energy Income and Growth Fund I.
The Organization of the Petroleum Exporting Countries' agreement to limit oil production will likely lead to increased US shale production, according to industry analysts. "Stated differently, OPEC has declared a truce on oil prices. But relentless improvements in shale technology will keep Saudis awake at night wondering if they have made the right choice," wrote analysts at Bank of America Merrill Lynch.
Freeport-McMoRan is planning to move forward with a planned $2 billion asset sale to Anadarko Petroleum despite the objections of creditors. Freeport-McMoRan will merge with subsidiary Freeport-McMoRan Oil & Gas prior to the deal, which the company believes will remove any obstacles to its completion.
California Gov. Jerry Brown has signed legislation that would send Californians early earthquake warnings as part of the statewide warning system. The program, ShakeAlert, is a seismic early warning system that detects the first shock waves from a big jolt, measures their strength and alerts people before the slower, damaging waves spread.
The Bureau of Ocean Energy Management is asking energy companies conducting seismic surveys to have workers available to watch for protected mammal species, in an effort to protect marine mammals and coastal environments from some offshore energy projects. Environmental group Oceana says sound from seismic research interferes with communication patterns from certain species, while the industry argues any interruption is short-term and has no significant effect on the animals.
The Texas Railroad Commission reports that oil output rose in July while gas production dropped. Preliminary results showed Karnes County led in oil production and Webb County led in natural gas.
Continental Resources will be in the Bakken Shale in the long term, with roughly two-thirds of the company's total production coming from the Williston Basin in North Dakota, said Jack Stark, Continental's chief operating officer. He said drilling has given a better understanding of the Bakken and which zones produce best with particular techniques, making the area "better than ever," and noted that by the middle of 2017, supply will be insufficient to meet demand.
The Dakota Access Pipeline might be able to move forward if Native American tribes affected by the project receive economic opportunities such as supply and delivery contracts, said Whiting Petroleum CEO Jim Volker. Standing Rock Sioux Chairman David Archambault said the tribe would not drop its opposition if given access to contracts.
Changes in the political and technological landscapes are pointing to a vastly different future for oil and gas organizations, but McKinsey & Company shares several ideas on how organizations can be proactive and prepare for the changes. "We are now entering a time of great change, with major societal, technological, and political trends reshaping the environment in which oil and gas companies operate," this article states.
The Organization of the Petroleum Exporting Countries has reached an agreement to limit crude oil production, with member-country levels to be set at its Nov. 30 policy meeting. This would be the first OPEC production cut since 2008.
- Page 1