West Texas Intermediate crude for July delivery fell 5.7% on Thursday to settle at $57.91 per barrel, the biggest percentage drop since Dec. 24, while Brent tumbled 4.6% to end the session at $67.76 per barrel. Prices took a hit from mounting demand concerns in light of the US-China trade dispute and rising global crude inventories.
Pipeline operator Rattler Midstream Partners, a subsidiary of Diamondback Energy, launched an initial public offering that brought in $665 million, making it the biggest energy IPO of 2019. Rattler operates 781 miles of crude, natural gas, drilling and wastewater pipeline in the Midland and Delaware basins of the Permian Basin.
Royal Dutch Shell has kicked off production ahead of schedule at the Appomattox platform in the deepwater Gulf of Mexico, which is expected to have average peak production of 175,000 barrels of oil equivalent per day. "That Appomattox was safely brought online ahead of schedule and far under budget is a testament to our ongoing commitment to drive down costs through efficiency improvements during execution," said Shell Upstream Director Andy Brown.
Companies are rushing to build disposal wells in the Permian Basin to handle wastewater from oil and natural gas drilling. In the past week, the Railroad Commission of Texas has received permit applications from two companies -- Boykin Energy and CrownQuest Operating -- that are seeking to drill a total of 12 injection wells on leases in Loving County, Texas.
Fierce opposition from coastal states, coupled with a March court ruling declaring that an Obama-era ban on drilling in swathes of the Arctic and Atlantic oceans can only be reversed by Congress, may delay the release of a new offshore drilling plan until after the 2020 presidential election. "They're re-looking at the whole program with a fresh set of eyes now that there's a new secretary in place," said American Petroleum Institute Vice President of Upstream and Industry Operations Erik Milito.
Wind leaders are working to reduce costs by 60%, building in strategic areas and using larger, more productive turbines to remain competitive as the end of the wind energy Production Tax Credit looms, writes Chris Tomlinson. "[R]enewable energy has established a beachhead and is undoubtedly the future of electricity generation," he notes.
Texas is an attractive market for wind investments, but companies have to be invested in the long run to really excel, said Leeward Renewable Energy Chief Operating Officer Jason Allen at WINDPOWER 2019. "It's wind friendly, there's lots of land, and the cost of entry is low, but there's a lot of players," says Allen, whose company is looking to control 1 gigawatt of installed wind capacity in the state.
Offshore wind is an incredible job creator and economic opportunity for US states, with 1 gigawatt of capacity translating to 8,000 jobs, says IHS Market executive Philippe Frangules. "This is a big job-creation story," he says.
Maryland's plan to source 50% of its electricity needs from renewables by 2030 became law. This will help Maryland's offshore-wind industry compete and deliver low-cost, clean energy to ratepayers, the American Wind Energy Association says.
RWE has secured approval from the Federal Trade Commission to acquire E.ON Climate and Renewables North America and a 16.7% equity stake in E.ON. RWE will combine the renewables assets with that of Innogy.
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