US Gulf of Mexico oil production should jump to an average 1.71 million barrels per day in 2021 and 1.75 million bpd in 2022, up from 1.65 million bpd in 2020, bolstered by the anticipated startup of 13 new projects by the end of 2022, according to the Energy Information Administration. However, there are several downside risks to this forecast, especially related to storm activity, the EIA said.
US crude oil accounted for 77% of Canada's overall imports in 2020, an increase from 72% in 2019, the latest data from the Canada Energy Regulator show. Likewise, 96% of Canadian oil exports last year went to the US, demonstrating the dramatic interdependence between the two countries, according to the American Petroleum Institute.
US crude oil stockpiles plummeted by 5.9 million barrels last week, exceeding analyst expectations for a 2.9-million-barrel drop, the Energy Information Administration reported. Gasoline inventories added 300,000 barrels, while distillate supplies slipped by 2.1 million barrels.
The Interior Department will defer for another several months, until November 1, a rule finalized in January by the Trump administration that would have changed how royalty payments for oil and natural gas production on public lands are calculated. "The Department of the Interior is delaying the rule's effective date in order to provide the Office of Natural Resources Revenue with needed time to consider whether it will revise or withdraw the 2020 rule and, if so, publish a proposed rule and invite further public comment," an Interior spokesperson said.
Sunset Exploration proposes to build a 1-acre drilling pad in the West Coast's largest stretch of contiguous wetlands to probe for natural gas. But environmentalists are opposing the plan in the Suisun Marsh on the general principle that the world needs no more carbon emissions and the more immediate potential for gas leaks.
President Joe Biden on Wednesday named Tommy Beaudreau, an energy lawyer and the first director of the Bureau of Ocean Energy Management, to serve as deputy secretary of the Interior Department. Biden also announced nine other nominees to fill vacancies at the Interior, Environmental Protection Agency, and Energy and Transportation departments.
Haynesville Shale natural gas production could increase in the coming months amid higher spot prices for gas supplies from the play and stronger demand from liquefied natural gas facilities. The Columbia Gulf Mainline index is up 41% year-on-year to an average of $2.17 per million British thermal units so far this month.
Chesapeake Energy this week announced a pilot program to produce responsibly sourced gas at select Haynesville Shale wells using Project Canary's emissions monitoring technology in an effort to shrink the environmental footprint of its drilling operations. Separately this week, EQT Corp said it would pursue responsibly sourced gas certification offered by Equitable Origin and MiQ for roughly 4 billion cubic feet per day of gas it produces in Pennsylvania's Marcellus Shale.
A proposal to ban hydraulic fracturing and impose a 2,500-foot setback between wells and homes, schools and health care facilities died in the California Legislature on Tuesday after failing to secure the five votes needed to pass the Senate's Natural Resources and Water Committee. Democratic state Sen. Scott Wiener, one of the bill's sponsors, pledged to continue his mission, saying, "If there is a path to narrowing the bill and getting the votes, we are very open to doing that."
Canada has held more than 20 meetings with US legislators at all levels of government to make the case for keeping Enbridge's Line 5 oil pipeline open and to reach a compromise on the issue, Canadian Natural Resources Minister Seamus O'Regan revealed. "We have signaled very clearly that this is non-negotiable," said O'Regan, adding, "Line 5 is very different from Keystone XL and we fully support it, and we will defend it."
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