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.
The UK should consider the possibility of tsunamis when building nuclear plants, oil terminals and ports, researchers say. Underwater landslides can cause tsunamis, and in the past 20,000 years, at least six landslides have occurred north of Britain, say scientists, who suggest the government add tsunamis to the National Risk Register of Civil Emergencies.
Researchers discovered 49 sinkholes in a 59,570-hectare area in the Qinling-Bashan Mountains in northwest China's Shaanxi province. The research team says the sinkholes, which may hold past climates' geological records, likely formed over hundreds of thousands of years as water dissolved carbonate rock underground.
Mexico today plans to auction oil-exploration rights for up to 10 blocks in the Gulf of Mexico and find an operating partner in the Trion oilfield. The cost to develop the 10 unexplored blocks would be about $34 billion over 15 years, the government says.
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