The number of rigs drilling for oil in the Permian Basin climbed by four to 467 last week, but the gains were offset by losses in Alaska, Louisiana, Colorado, North Dakota and Ohio, according to Baker Hughes. Meanwhile, the natural gas rig count increased by one unit to 200.
US oilfield service providers and oil drillers continue to have trouble finding enough skilled employees in the oil patch as the wave of layoffs that followed the 2014 oil price crash prompted many workers to transition to other industries. This shortage is contributing to a rise in service costs for producers, and the situation is made worse by an increased need for workers with high-tech skills who can advance oil companies' digitalization strategies.
US petroleum demand exceeded 20.3 million barrels per day in April, while average petroleum demand for the first four months of 2018 was up by 750,000 barrels per day over the same period in 2017, according to the American Petroleum Institute. "Economic fundamentals continue to propel petroleum markets at home and abroad," said API Chief Economist Dean Foreman.
Oil majors BP and ConocoPhillips are reportedly holding talks over a potential asset swap deal that would see BP exchanging some of its Alaska assets for Conoco's 24% stake in the Clair field in the North Sea.
US independent producer Goodrich Petroleum is exploring a potential sale of its Eagle Ford Shale assets, which consist of about 14,000 Tier 2 acres. The company has been focusing its attention on Louisiana's Haynesville Shale lately and plans to deploy a second rig there in June.
The Enhanced Oil Recovery Institute at the University of Wyoming will spend $2.2 million to research ways to increase production at old oil and natural gas fields, make better use of infrastructure and develop injection materials and drilling techniques. The institute will work with XRO Energy and Signal Hill on seven Wyoming projects.
Lava from the erupting Kilauea volcano on Hawaii's Big Island has reached the Pacific Ocean on the southern coast, potentially creating a hazardous mix of hydrochloric acid fumes, steam and volcanic particles, authorities say. Plumes of "laze" -- a term derived from lava and haze -- result from lava's reaction with sea water and can cause lung, eye and skin problems.
An August forum hosted by the Society of Exploration Geophysicists in Stillwater, Okla., will examine the potential infrastructure damage from Oklahoma's earthquakes. A dramatic increase in seismic activity exposes dams, bridges, water treatment facilities and oil pipelines to long-term stress that hadn't been considered during their design, according to an article in The Leading Edge, an SEG publication.
Egypt says it will conduct two international auctions for oil and natural gas exploration this year. One bidding round will involve 16 concession areas, most of which are in the Mediterranean, and the other will involve 11 concession areas.
Azinam, an oil and natural gas exploration and production company focused on Namibia, plans to drill multiple wells in the Walvis Basin off the southwest African nation's coast. The company, which will explore potential resources in six license areas, will look for partners to help with the two-year effort.
- Page 1