The US oil and natural gas rig count fell by seven to 1,052 last week, according to Baker Hughes. Alaska and Wyoming were the only states to post gains, while Louisiana and Oklahoma recorded the biggest losses, losing four and two rigs, respectively.
The American Petroleum Institute has teamed up with several black and Hispanic business groups in hopes of convincing minority groups to support offshore drilling. "We want to build support in minority communities because the message that increasing the supply of affordable energy and good-paying jobs will resonate," API Director of Upstream and Industry Operations Erik Milito said.
The number of drilled-but-uncompleted wells in the Permian Basin soared to 3,203 in May, a 90% jump from a year ago, as a lack of pipeline capacity in the region prompts drillers to curb production. The surging backlog shows that producers may soon be forced to shut down older wells.
The US Geological Survey estimates that the Eagle Ford Shale in South Texas holds 8.5 billion barrels of oil, 66 trillion cubic feet of natural gas and 1.9 billion barrels of natural gas liquids. This makes the play "one of the most prolific continuous accumulations in the United States," the USGS said.
The Environmental Protection Agency has delayed its plan to increase biofuel quotas for large refiners. The plan would have required large refineries to blend an additional 1.5 billion gallons of biofuels under the Renewable Fuel Standard to make up for small refineries exempted from the program.
In an interview with SmartBrief, American Petroleum Institute Executive Vice President and Chief Strategy Officer Marty Durbin said he sees a bright future ahead for the US oil and natural gas industry and the liquefied natural gas sector in particular, touting the role of US LNG exports in reshaping global markets. Durbin identified infrastructure development and access to export logistics and markets as the keys to industry growth and project success.
Delegates to the OPEC meeting in Vienna have reached a tentative agreement to boost production by 1 million barrels of oil per day. Details of the plan are still being worked out.
The uncertainties surrounding the US-China trade war are narrowing Chinese demand for US crude, with no US crude cargoes expected to be delivered to China's independent refiners over the next few months. Limited supply of medium sour US grades and the high cost of processing US crudes are also driving down Chinese demand.
A shortage of pipeline capacity near the Cushing, Okla., oil hub threatens to slow down oil production growth in Colorado in the immediate future, according to a report from the Colorado Office of State Planning and Budgeting.
Shale firms' newfound focus on financial discipline and shareholder returns jeopardizes much-needed long-term investments in shale, warned Hess Corp. CEO John Hess. "While that financial discipline is healthy, I think it does act like a break on long-term investment," Hess said.
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