The US pumped 13 million barrels of oil per day, an all-time high, in September and remains on track to establish new production records this year and next, according to the Energy Information Administration. The agency revised upward its oil production forecast for 2019 by 30,000 bpd to 12.29 million bpd and to 13.29 million bpd for 2020.
A regulatory hearing took place in North Dakota on Wednesday to consider Energy Transfer's proposal to double the capacity of the Dakota Access pipeline to 1.1 million barrels per day. Pipeline officials sought to reassure regulators that the expansion would not increase the risk of spills, a claim that opponents, including the Standing Rock Sioux Tribe, disputed.
Gone are the days of $100 per barrel oil, making creditors increasingly reluctant to refinance North American oil and natural gas producers, which are facing $93 billion of debt due by 2023, according to data from Moody's Investors Service. "With limited appetite from investors to invest more capital and difficult upcoming bank redeterminations, companies are going to have to be creative or could face some real challenges," said Hugh "Skip" McGee of Intrepid Financial Partners.
The Bureau of Land Management has put on hold operation and production on 130 oil and natural gas leases in Utah in the wake of a lawsuit by environmental groups that claims the agency did not adequately assess the impact on climate before leasing the land. "The BLM has concluded that it is necessary to suspend the referenced leases and complete further environmental analysis," the agency said.
The Haynesville Shale is poised to become a crucial part of the global natural gas supply-demand equation and a "main supplier to LNG operations along the U.S. Gulf Coast," according to a report by GlobalData. The region's drilling revival is expected to carry on "for the foreseeable future," driven by rising demand for gas feedstock for use in liquefied natural gas production, the report says.
Comstock Resources, the top operator in Louisiana's Haynesville Shale, is reportedly engaged in negotiations for the potential acquisition of Chesapeake Energy's Haynesville assets in a deal that could be valued at up to $1 billion. The acquisition could enable Comstock to improve pricing and returns from its infrastructure, Mercer Capital analyst Michael Sousoulas said.
The shale revolution has had a positive impact on the US and a ban on hydraulic fracturing as proposed by many Democratic presidential hopefuls "would probably not be a good thing for the economy," Federal Reserve Chairman Jerome Powell testified before Congress on Wednesday.
New Mexico's gross domestic product has expanded by 4.1% in the second quarter, the same as Alaska and behind Wyoming's 4.2% and Texas' 4.7%, according to a report from the Bureau of Economic Analysis. Mining, quarrying and oil and gas extraction were responsible for 2.2% of the state's GDP growth, compared with 3.5% in Wyoming and 1.8% in Texas.
Abu Dhabi National Oil Co. and Total will work together on a pilot project that uses drones and unmanned vehicles to gather 3D seismic data in the search for oil and natural gas in the United Arab Emirates' desert areas. Total's Multiphysics Exploration Technologies Integrated System will use six drones to deploy sensors at a 36-square-kilometer site and unmanned vehicles to pick them up.
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