Texas produced 86.6 million barrels of shale oil and condensate in March, up nearly 2% from February but down from the same period a year ago, according to preliminary data from the Railroad Commission of Texas. "Texas preliminary March 2017 crude oil production averaged 2,492,349 barrels daily, compared to the 2,506,539 barrels daily average of March 2016," the commission said.
US crude stockpiles could post declines of as much as 10 million barrels per week in the upcoming period in a sign that the oil supply glut is finally easing, according to oil traders and analysts. Andrew Lebow, senior partner at Commodity Research Group, expects US crude inventories to fall below 500 million barrels over the next six to 10 weeks, down from 516 million barrels last week.
Land acquisitions in Alberta, Canada, have hit the highest level since 2014 fueled by a new wave of investment in the Duvernay Shale, which is estimated to hold 354 million barrels of oil equivalent that were previously considered unprofitable. The increasing interest in the formation, particularly the Duvernay East Shale Basin portion, has boosted land prices.
Permian drilling productivity is expected to decline for the first time since 2013 in June, with oil production per new well seen down by 10 barrels to 630 barrels per day, according to the Energy Information Administration. This aspect, together with the fact that the number of drilled-but-uncompleted wells is expected to climb to 1,995 in June, suggests that explorers are adding rigs faster than the understaffed hydraulic fracturing firms can handle.
The Trump administration's proposal to sell oil from the Strategic Petroleum Reserve could violate federal law, Deputy Energy Secretary nominee Dan Brouillette said during a confirmation hearing. The law states that the president is allowed to sell oil from the reserve only in case of a "severe energy supply interruption or by obligations of the United States under the international energy program."
The Canadian government is preparing stricter rules aimed at curbing methane emissions from oil and natural gas operations, according to an announcement from Environment and Climate Change Minister Catherine McKenna. "By better detecting and patching leaks, companies will be able to save and sell that natural gas and do their part to fight climate change," McKenna said.
A comet that hit a 15-kilometer-wide area of what is now Ontario, Canada, 1.85 billion years ago may have caused volcanic activity for up to 1.5 million years, a new study says. Researchers analyzing rock samples in the basin's Onaping Formation rock deposit found igneous materials that suggest underwater eruptions occurred during the formation's development.
A research team created a data-centric model with a supercomputer to examine the Earth's deep mantle and how it relates to plate tectonics. Lijun Liu, a geology professor at the University of Illinois, says the model, which shows the subducting slab deforms the mantle, provides insight on the continents' evolution and may be able to predict earthquakes and volcanoes.
Researchers have come up with a technique called "seismic nowcasting" that calculates the potential for major earthquakes around populated cities. The method, which assigns scores to the locations, factors in the number of small earthquakes that have occurred and the resulting buildup of stress, and assumes some earthquakes follow a pattern.
A partnership of energy companies has begun drilling an oil exploration well in the FAN South-1 prospect off the coast of Senegal in West Africa, says Australia-based FAR. The deepwater prospect may contain about 134 million barrels of recoverable oil, FAR says.
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