Noble Energy has paid $216 million for 7,200 acres in the Delaware Basin portion of the Permian and has also increased working interests in certain assets it already operates there. As a result of the deal, the company will boost its Delaware position with 150 new locations.
The number of US oil rigs increased by three to a 10-month high of 477 in the week ending Dec. 2, according to Baker Hughes. The Permian Basin accounts for almost half of that figure with 235 active rigs.
US natural gas exports to Mexico almost tripled since 2010 to about 1 trillion cubic feet of natural gas in 2015, and the US' pipeline capacity to ship gas to its southern neighbor is expected to double over the next few years from the current 7.3 billion cubic feet per day. Mexico's growing demand for natural gas has helped create jobs in the US, and experts predict continued economic benefits despite the potential risks posed by Donald Trump's presidency.
The US Army Corps of Engineers on Sunday announced it would not grant an easement for the Dakota Access Pipeline and said it would look for alternative routes and analyze more closely the environmental impact of the project. Midwest Alliance for Infrastructure Now spokesman Craig Stevens called the decision "a rejection of the entire regulatory and judicial system" and expressed hope that President-elect Donald Trump would reverse it once he takes office.
BP's Mad Dog Phase 2 project, the first new drilling project in the Gulf of Mexico in a year and a half, paves the way for other oil companies to revive their shelved US offshore projects. However, Quantum Reservoir Impact CEO Nansen Saleri foresees a slow return because companies would need stable oil prices above $60 a barrel to make a full comeback.
SM Energy seeks to raise $363.4 million from the sale of 9.5 million common shares, with plans to use part of the proceeds to acquire 4,100 acres in the Midland Basin of the Permian for $120 million. "The bolt-on nature of the acreage acquired will stretch laterals and improve well economics," Capital One Southcoast analysts said.
Anti-fracking activists in Maryland are unlikely to succeed with their efforts to ban hydraulic fracturing, as Democratic state Sen. Joan Carter Conway is expected to once again intervene in favor of the practice during the next legislative session. However, chances are that lawmakers will extend an existing fracking moratorium in an attempt to keep the practice out of Maryland.
Continental Resources CEO Harold Hamm believes the US has the capacity to double its oil output from 10 million barrels a day to 20 million barrels a day. However, he said this "needs to be done in a very systematic way," or else it risks creating another global oil glut that will cause oil prices to crash.
BP on Thursday approved a $9 billion investment in its Mad Dog phase 2 project in the Gulf of Mexico, which will start producing oil in 2021 and boost output at BP's existing project by 140,000 barrels per day, up from the current 80,000 barrels per day. As part of the project, BP will set up a floating production platform some six miles away from the current one.
Houston-based WildHorse Resource Development has launched an initial public offering and is hoping to raise over $664 million from the sale of 27.5 million shares of common stock priced between $19 and $21 each, with a 30-day option for underwriters to purchase an additional 4.125 million shares. WildHorse will use the proceeds from the IPO to finance its acquisition of 158,000 net acres in Burleson County, Texas, and pay off debt.
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