The Energy Information Administration predicted that US shale oil output will climb by 111,000 barrels per day to 6.55 million barrels per day in February. Permian Basin production will likely jump by 76,000 barrels per day to 2.87 million, while oil output in the Eagle Ford Shale and Bakken Shale is seen rising to 1.27 million barrels per day and 1.22 million barrels per day, respectively.
Surging natural gas flows to Mexico and booming liquefied natural gas exports put the US on track to be a net exporter of natural gas for the first time since 1957 this year, according to the Energy Department. By 2019, the US is expected to have the world's third-largest LNG capacity while pipeline capacity to Mexico should double.
North Dakota's Department of Mineral Resources expects oil production in the state to reach record levels this year after drillers pumped 1.19 million barrels per day in November, just shy of the record of 1.23 million barrels per day set in December 2014. Natural gas production in November rose 1.4% from October to set a record of 2.1 billion cubic feet per day.
Hess will shed about 300 jobs, representing 13% of its workforce, this year amid pressure from activist investor Elliott Management, which wants the company to scale back operations. The job cuts combined with a stronger portfolio should allow the company to slash production costs by 30% to less than $10 per barrel by 2020, said Hess spokeswoman Lorrie Hecker.
Linn Energy has agreed to sell its interests in the Altamont Bluebell Field in Utah's Uinta Basin for $132 million to an unknown buyer. The asset package includes 36,000 net acres with third-quarter 2017 net production of 1,450 barrels of oil equivalent per day and proved developed reserves of 5.8 million barrels of oil equivalent.
Norway has awarded 75 offshore oil-exploration licenses in the North Sea, Norwegian Sea and Barents Sea to 34 companies. Statoil, Aker BP, Total and ConocoPhillips are among the companies winning the licenses -- the most ever awarded in a Norwegian continental shelf licensing round.
Royal Dutch Shell says it will build a floating production, storage and offloading vessel designed to pump 45,000 barrels of oil equivalent daily from the Penguins oil and natural gas field in the North Sea, about 241 kilometers northeast of the Shetland Islands. The Netherlands-based company says it will drill eight wells and connect them to the vessel.
Companies are showing interest in tenders for offshore oil and natural gas exploration off the coast of Greece, said the CEO of Hellenic Hydrocarbon Resources Management, which is accepting applications. Offers will be accepted until early March, and preferred bidders will be named by May, said HHRM CEO Yannis Bassias, who declined to name the companies expressing interest.
India is trying to attract oil and natural gas explorers by increasing potential hydrocarbon resources from 28 billion to 42 billion metric tons and allowing companies to choose drilling areas. India, which will auction off up to 55 blocks on Thursday, is offering incentives such as tax breaks and simplified permits.
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