OPEC doesn't see US shale as a threat and believes the two sides have common interests, said Mohammed Barkindo, the cartel's secretary general. Barkindo believes the global oil market will be able to absorb the surplus of US shale oil and said he would meet US shale producers next month.
Canada imported 363,000 barrels of US oil per day on average in 2016, 23% less compared with 2015, marking the first time since 2010 that US oil exports to Canada have declined, according to Canada's National Energy Board. The trend reversal came as Canadian Atlantic coast refiners favored cheaper foreign crude.
The Trump administration is seeking to overhaul the Pipeline and Hazardous Materials Safety Administration, which critics say has implemented overreaching and unnecessary regulations. Pipeline opponents are worried that overturning Obama-era PHMSA rules will increase the risk of spills, but the latest government statistics point to an improvement in the rate of incidents, with the number of spills falling from 462 to 417 in 2016 and leaked volume declining 27%.
Midland, Texas-based exploration and production company Moriah Henry Partners has received a $200 million equity commitment from Houston-based Post Oak Energy Capital to help it boost its position in the Permian Basin. The company will use the capital to acquire and develop acreage in the Midland Basin.
Houston-based Fairway Energy on Tuesday filed a lawsuit against Tulsa, Okla.-based Magellan Midstream Partners, saying the latter is violating the Texas Free Enterprise and Antitrust Act by refusing to allow Fairway to connect to its Houston-area crude distribution network. "They're purposely trying to stifle competition," said Dana Grams, Fairway's chief commercial officer.
Texas oil and natural gas drillers contributed $9.7 billion to state and local revenue in fiscal 2016, down 30% from 2015 and almost 40% less compared with 2014, the Texas Oil and Gas Association said. The decline came amid lower oil prices and weak drilling activity.
The American Petroleum Institute, the American Gas Association and two other natural gas trade groups have asked the Pipeline and Hazardous Materials Safety Administration to extend compliance deadlines associated with new regulations for underground gas storage facilities until 2020. The groups said the compliance schedule is "not just unreasonable, but simply not practicable."
The Tallahassee, Fla., City Commission today will evaluate an ordinance proposed by City Commissioner Nancy Miller and Mayor Andrew Gillum that would ban hydraulic fracturing within city limits to protect water sources. Miller acknowledged that the city may never attract frackers because "they'd have to drill through a whole lot of water to get to anything they could extract out of."
Russian oil company Rosneft signed an agreement with Libya to develop oilfields there. Russia had investments in Libyan oilfields before Libyan leader Moammar Gadhafi was overthrown in 2011, and it is trying to recover them and restart exploration and production.
CGG, a geoscience company, will process seismic data from onshore and offshore fields in Brunei using advanced processing and subsurface imaging technology. Oil and natural gas company Brunei Shell Petroleum awarded CGG a six-year contract to operate a processing center in Brunei Darussalam.
- Page 1