Investment by U.S. oil and gas producers is likely to drop by at least 35% in the second quarter versus the first quarter of this year due to the crushing impact of Covid-19 on crude prices and a lack of available storage capacity, the Federal Reserve Bank of Dallas said Friday.
Articles from Crude
Natural gas futures snapped a three-day losing streak, edging up Monday as weather models hinted at what could be a warmer-than-normal summer. However, with a looming storage “tsunami,” the June Nymex gas futures contract settled only three-tenths of a cent higher than Friday’s close at $1.826. July climbed .008 cents to $2.085.
Enterprise Products Partners LP (EPD) has yet to see a “material change” to volumes across its system, but given the “highly uncertain” impacts of the coronavirus for the remainder of 2020, it has reduced planned growth capital investments by $1 billion and sustaining capital expenditures (capex) by $100 million.
Still struggling to get a grasp on how much demand is being lost amid the coronavirus pandemic, natural gas traders on Monday took their cue from unparalleled deterioration in the oil markets. After an initial sell-off early in the session, the May Nymex gas futures contract rallied, shattering resistance and settling the day at $1.924, up 17.1 cents from Friday’s close. June climbed 14.6 cents to $2.049.
Extraordinary measures are continuing to slam the oil and gas markets, as more North American producers, including EQT Corp. and EOG Resources Inc., are announcing cuts to spending while oil prices — and demand — are slaughtered.
As the oil market rout continues, a clearer picture is emerging of its impacts on global natural gas trade, with analysts predicting both downside and upside consequences for various regions across the world.
Amid Oilsands Scrutiny, Canadian Natural Exec Lauds ‘Impressive Results’ On Emissions Intensity in Alberta
As Alberta oilsands producers face increasing scrutiny over the greenhouse gas (GHG) emissions intensity of their operations, Calgary-based Canadian Natural Resources Ltd. is leading efforts to make exploration and production (E&P) in the province more sustainable, management said Thursday.
In another sign of the impact on energy demand from the worldwide coronavirus, the Organization of the Petroleum Exporting Countries (OPEC) on Thursday recommended that members reduce global crude output through the end of the year, with an additional adjustment through June.
North Dakota’s chief oil and gas regulator last Friday predicted that the indirect impact of the coronavirus on global oil prices and demand could be felt for the rest of this year by U.S. operators.
At a time when the field of proposed oil export terminals is narrowing, a subsidiary of Dallas-based Sentinel Midstream LLC has garnered additional support for developing a project near Freeport, TX.