The Pacaya volcano in Guatemala is sending ash and gas into the air, forcing Guatemala City's La Aurora International Airport to temporarily halt flights. The increase in activity at the volcano, about 48 kilometers south of the capital, comes less than two weeks after Guatemala's Fuego volcano erupted, killing over 110 people.
US crude inventories slumped by 4.1 million barrels last week, surpassing analyst expectations for a 2.6-million-barrel decline, according to the Energy Information Administration. Meanwhile, gasoline and distillate supplies shrank by 2.3 million and 2.1 million barrels, respectively.
Natural gas appears poised for a rally as the oil market signals it is past its peak, writes Bloomberg Intelligence analyst Mike McGlone. The situation amounts to a reversal of the 1970s as developing-nation demand flags and US production accelerates.
Last year's rush to hedge oil production at about $55 per barrel is now limiting shale drillers' ability to profit from the oil rally, potentially resulting in about $1.7 billion in combined lost revenue for the top 25 shale firms in the second quarter. Insufficient pipeline capacity is also putting pressure on driller revenues.
US private equity player Apollo Global Management has reportedly formed an energy-focused special purpose acquisition company that intends to raise money this year to invest in North American oil and natural gas pipeline infrastructure.
Phillips 66 plans to invest as much as $1.5 billion to expand its Sweeny Hub in Texas as it seeks to take advantage of booming natural gas production in the Permian Basin. The expansion project, expected to come online in late 2020, would include two processing units for natural gas liquids, each with a capacity of 150,000 barrels per day.
House Republicans have proposed a measure that would fine states that reject offshore drilling in more than half of their lease blocks. The House Natural Resources Committee will consider the proposal today.
Ocean Energy will use autonomous underwater vehicles to gather data for Woodside Petroleum's development of the Scarborough natural gas field off the coast of the Burrup Peninsula in Western Australia. The deepwater area contains more than 9 trillion cubic feet of dry gas.
The Permian Basin could produce 5.4 million barrels of oil per day on average in 2023 and account for 60% of global oil production growth, according to IHS Markit. Insufficient US infrastructure for oil remains a concern, said Jim Burkhard of IHS Markit.