The National Hurricane Center is expected to upgrade a storm on track for the Gulf of Mexico to tropical storm status, and operators in the area have started evacuating non-essential personnel. Hess, BP, BHP Billiton and Anadarko are among the operators who have started taking precautionary measures, including securing facilities in the region.
Royal Dutch Shell has agreed to a $425 million deal with EnVen Energy to sell its Brutus/Glider operation in the Gulf of Mexico. Back in July, the company announced plans to sell $6 billion to $8 billion worth of assets this year, and as much as $30 billion over the next three years to help pay for its $54 billion acquisition of BG Group that was announced in February.
Acquisitions for the first half of the year were led by activity in the Permian Basin, and that's poised to continue through the rest of the year, even as prices rise sharply. "My biggest takeaway is just how quickly acreage prices have been rising in the Delaware Basin," said NGI's Patrick Rau, director of strategy and research.
A proposal that threatened to damage Colorado's oil and natural gas production did not receive the required number of signatures to move forward. Initiative 78 was set to stop 90% of drilling and significantly reduce the number of energy explorers in the sixth-largest gas-producing state.
Motiva's HCU in Norco, La., was restarted on Monday after a weekend of malfunctions, say sources with knowledge of the plant's operations. The refinery, which produces 237,000 barrels per day, was under repair following an Aug. 20 breakdown and had only returned to production last Friday.
Wim Thomas, Shell's chief energy adviser, says that the huge global oil oversupply may not correct itself until the end of 2017, but the company is prepared for all outcomes. "It can happen any time between the second half of this year and the second half of next year," he says.
Oil producers in the Marcellus and Utica shales, including Range Resources, EQT and Cabot Oil & Gas, are increasing output to synchronize with upcoming pipeline projects. Other companies, such as Antero Resources, are waiting for new pipelines to begin operations before boosting production.
The Permian Basin that stretches across northwestern Texas and into a portion of New Mexico continues to outpace all other major US shale basins combined when it comes to investments. Just last week, Blackstone invested $1 billion in the region, while PDC Energy purchased two Permian exploration and production companies for $1.5 billion.
ExxonMobil is selling its interest in a proposed Alaska LNG export terminal to the state, and other backers of the project may soon follow. A Wood Mackenzie report from last week referred to the project as "one of the least competitive on a cost of supply basis compared with other" proposed LNG export terminals worldwide.
The American Petroleum Institute says that US natural gas production and exports can be the key to energy security for our European allies. "America's growth in natural gas production means that through liquefied natural gas exports we can give our allies stability and security in the global natural gas market," says Martin Durbin, executive director of marketing at API.
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