Oil & Gas
Top editor picks, summarized for you
7/2/2015

Domestic crude oil output in April reached its highest level since May 1971 at 9.701 million barrels per day, up 9,000 barrels per day, according to data released Tuesday by the Energy Information Administration. Shale drilling technology has driven the output growth by allowing access to previously isolated oil reserves. Meanwhile, monthly production is expected to decline beginning in June, the agency said.

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Reuters
7/2/2015

The Pipeline and Hazardous Materials Safety Administration on Wednesday issued a proposed rule requiring pipeline operators to report breaches and leaks to the National Response Center within an hour after an incident. "We will continue to update our regulations to positively influence pipeline operator safety programs and to address concerns related to failures, operator error and other safety risks," said Stacy Cummings, PHMSA interim executive director.

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The Hill
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National Response Center, PHMSA
7/2/2015

U.S. Geological Survey researchers analyzed data from IHS Energy on over 81,000 domestic wells and found that water usage for hydraulic fracturing was highest in shale plays. The volumes of water used for fracking range from 2,600 gallons to 9.7 million gallons per well, according to the analysis published in Water Resources Research.

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IHS Energy, Geological Survey
7/2/2015

Some shale drillers could go through a financial setback amid the looming expiration of their hedging contracts, observers say. Revenue from hedges is expected to decline further after a 37% drop in 2014 as companies convert contracts into cash, according to the Bloomberg Intelligence North America Exploration and Production Index of 62 companies. "Some companies are not nearly as well-hedged for 2016 as they were for this year. They're going to have a real cash-flow crunch," said Omar Samji, a partner at law firm Jones Day.

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Bloomberg
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hedges, Jones Day, Bloomberg, law firm
7/2/2015

FourPoint Energy has reached a deal involving three transactions to buy oil and natural gas assets from Chesapeake Energy subsidiaries Chesapeake Exploration and CHK Cleveland Tonkawa for a total of $840 million. The assets include about 1,500 producing wells in Oklahoma with an average production capacity of 21,500 barrels of oil equivalent per day and almost 250,000 net acres of mineral rights. The deal is expected to be completed Aug. 31.

7/2/2015

Royal Dutch Shell said Wednesday it is moving forward with its Appomattox deepwater development off the Louisiana coast in the Gulf of Mexico after it cut the project's costs by 20%. The company expects to begin production before the decade ends, with peak output projected at approximately 175,000 barrels of oil equivalent per day. Shell Upstream Americas Director Marvin Odum said the final investment decision for the project is among the largest this year.

7/2/2015

The American Petroleum Institute will introduce in the following weeks a recommended practice aimed at developing an organizational safety culture for pipelines within the industry, Group Director of Midstream and Industry Operations Robin Rorick said Wednesday. API has worked closely with the National Transportation Safety Board and the Pipeline and Hazardous Materials Safety Administration in developing the standard, Rorick said.

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Oil & Gas Journal
7/2/2015

Energy XXI said Wednesday it completed the $21 million sale of the East Bay Field in the Gulf of Mexico to an undisclosed buyer. The field has over 100 pay sands with an estimated reserve of 9.4 million barrels of oil equivalent. President, Chairman and CEO John Schiller said the transaction enables Energy XXI to concentrate on more profitable fields, adding that the company will continue weighing possible sales of non-core assets in the Gulf.

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FuelFix.com
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Energy XXI, John Schiller
7/2/2015

Enbridge has entered into a development agreement to purchase a 5% equity stake in Delfin LNG, a proposed liquefied natural gas export facility in the Gulf of Mexico, project owner Fairwood Peninsula Energy said Wednesday. Enbridge will also assist Fairwood in "pipeline project management, pipeline operations and sourcing gas to facilities," said Dave Weathers, vice president of business development for U.S. midstream at Enbridge.

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FuelFix.com
7/2/2015

Virginia-based Alpha Natural Resources said Wednesday it reached a $126 million deal to buy out an EDF Trading Resources subsidiary's 50% share in their joint venture Pennsylvania Land Resources Holding. The venture has over 25,000 net acres and some infrastructure in the Marcellus Shale. The company also said it plans to drill the first well in one of the two well pads in the acreage within 30 days.

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