Permian Basin pure-play Diamondback Energy Inc. has brought all of its curtailed production back online and expects to generate free cash flow in the second half of the year, management said Tuesday. The company curtailed 5% of its oil output during the second quarter in response to a pandemic-induced global supply glut, “with zero wells…
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Hurricane, Coronavirus and Demand Concerns Weigh Down September Natural Gas Futures
Temperatures in many parts of the Lower 48 are expected to cool down in the coming week Hurricane Isaias could further weaken energy demand Continued spread of the coronavirus dampened sources of demand outside of weather September natural gas futures on Friday declined for a second day in a row as summer heat was…
ExxonMobil Slashing Permian Rig Count, Forecasting Global Oil Glut Extending ‘Well into 2021’
A global oil supply glut and scant demand resulting from Covid-19 pushed ExxonMobil to a historic loss in the second quarter, with nearly every corner of its operations slammed. The quarterly loss of $1.1 billion (minus 26 cents/share) was the deepest in history as transportation and petrochemical demand reversed. During 2Q2019, profits were $3.1 billion…
Despite Covid-19, Oil Curtailments, Pemex Maintains Production Rates in 2Q
Mexico’s Petróleos Mexicanos (Pemex) held steady its oil and gas production in the second quarter despite major upheaval in oil markets caused by the coronavirus pandemic. Liquid hydrocarbons production was 1.693 million b/d in the second quarter, flat compared with year-ago output of 1.690 million b/d. The figure included the 100,000 b/d of output shut-in…
Permian Natural Gas Output Seen Rebounding Sharply, with Pipe Constraints Likely from 2023 Onward
Natural gas production from the Permian Basin is expected to return to record levels by late 2021 and reach 16 Bcf/d by the end of 2023, although delayed pipeline approvals could limit takeaway capacity beginning in 2023, according to new analysis by Rystad Energy. The 16 Bcf/d figure, which assumes a $45-50/bbl West Texas Intermediate…
National Oilwell Sees Opportunities Amid Mayhem as E&Ps Prize Efficiencies, ‘ESG-Friendly’ Equipment
Covid-19’s impact on demand has tossed aside forecasts for the oil and gas industry, but there’s still a solid future for the fossil-fueled world, the chief of National Oilwell Varco Inc. (NOV) said Tuesday. During a conference call to discuss second quarter performance, CEO Clay Williams said the downturn from the coronavirus is unlike anything…
Precision Drilling Improves Bottom Line, but Pandemic Clouds Outlook
Global drilling behemoth Precision Drilling Corp. cut costs by double-digits and improved efficiencies across its operations during the second quarter, but there’s paltry visibility as uncertainties surrounding the impacts of Covid-19 remain a concern, management said. Even though revenue plunged by nearly half from a year ago to $47 million, the multi-talented operator is poised…
Storage Report Points to Tightening Balance, Igniting August Natural Gas Futures Rally
August natural gas futures advanced on Thursday as a modest storage injection eased containment concerns and overshadowed worries imposed by the ongoing coronavirus pandemic. The August Nymex contract climbed 10.4 cents day/day and settled at $1.796/MMBtu. September rose 11.7 cents to $1.843. NGI’s Spot Gas National Avg. was up 1.0 cent to $1.610. The Energy…
Patterson-UTI Sees U.S. Rig Count Stabilizing, Fracturing ‘Bump’ as Lower 48 Drilling Improves
Houston-based Patterson-UTI Energy Inc. CEO Andy Hendricks on Thursday credited solid relationships with its exploration customers and “top tier performance” as Covid-19 decimated demand in helping to stem losses during the second quarter. The contract drilling specialist saw its earnings and revenue tumble, but shuttering facilities, laying off crews and stacking equipment improved the bottom…
Light Storage Injection Drives August Natural Gas Futures Higher
The U.S. Energy Information Administration (EIA) reported an injection of 37 Bcf into storage for the week ending July 17, marking the fourth consecutive week of double-digit builds and pushing Nymex natural gas futures higher. Ahead of the report, the August contract was up seven-tenths of a cent at $1.688/MMBtu. The prompt month declined slightly…