Houston-based Gastar Exploration has reached a deal with a private investor to develop 60 wells in the STACK play section of Oklahoma. The company has also announced the sale of non-core assets in the state for $71 million.
The US oil rig count is riding a 16-week streak without a decline, but it's not translating into increased business for large oilfield services providers such as Halliburton and Schlumberger. The increased rig count largely stems from smaller oil companies that simply don't require large companies' services for drilling wells that are less complex.
US Gulf Coast oil refineries could face a disruption of oil supply if Venezuela's state oil company Petroleos de Venezuela, their main provider, defaults. Lucas Aristizabal, a senior director at Fitch Ratings, said "creditors may try to seize payments made in the US" if PDVSA fails to swap $5.325 billion of bonds by today, causing a default.
The Permian Basin is one of the few American oilfields that still allow oil companies to turn a profit despite low oil prices and a decline in overall crude production in the US. The rig count has surged to more than 200 in September and output is expected to maintain its upward trajectory heading into 2017, turning the Permian into a magnet for investors.
Plumes of yellow-orange smoke sent from the Commerce City refinery's stacks after an Oct. 14 power failure were not hazardous and shouldn't cause concern for the public, according to the Colorado Department of Public Health and Environment. The Suncor plant resumed operations on Sunday and is within emission limits.
The Ethiopian Mineral, Petroleum and Biofuel Corp. is considering a partnership with a China Poly Group unit looking to spend $4 billion developing gas deposits in the country. It would be the first of a series of deals with foreign investors planning to develop natural-resource deposits in Ethiopia.
US shale producers will continue to boost output, making the possibility of a global oil shortage unlikely, ExxonMobil Chairman, President and CEO Rex Tillerson said at a conference in London. "I don't necessarily have the view that we are setting ourselves up for some big collapse in supply within the next three, four, five years," he said.
Fort Worth-based Double Eagle Energy Permian is moving forward with plans for an initial public offering -- a rare event in the oil industry as most energy companies are acquired before going public. Several bankers valued Double Eagle at nearly $3 billion based on prices of mineral rights in the Permian Basin.
A number of large oil producers are in position to rebound after making efficiency gains during a period of low oil prices. "Capital spending has come down massively, and majors have taken a lot of the fat out of their organizations," said Neil Mehta, an analyst at Goldman Sachs.
- Page 1