Inflation

Recessionary Headwinds Gather Force, Possibly Curtailing Natural Gas, Oil Demand

Recessionary Headwinds Gather Force, Possibly Curtailing Natural Gas, Oil Demand

Fresh global recession fears have emerged amid intensifying inflation, rising interest rates and the specter of new pandemic-driven lockdowns in China that could further disrupt supply chains. A downturn could diminish demand for oil and natural gas after a robust start to 2022 fueled energy market rallies. Most recently, Chinese officials in Beijing on Monday…

April 26, 2022
Dow Touts Advantages of Natural Gas Availability, Joins Germany LNG Project

Dow Touts Advantages of Natural Gas Availability, Joins Germany LNG Project

Management at global petrochemical giant Dow Chemical Co. said Thursday that manufacturing sites with access to shale natural gas resources enjoyed a favorable position during the first quarter of 2022. “Natural gas has been stubbornly high,” said CEO Jim Fitterland during Dow’s earnings call for the first quarter of 2022. “It was higher than last…

April 25, 2022
Accelerating Inflation Presents Natural Gas, Oil Companies Potential for Profits and Pitfalls

Accelerating Inflation Presents Natural Gas, Oil Companies Potential for Profits and Pitfalls

Soaring energy prices – driven most recently by spikes in crude – helped drive the U.S. inflation rate to a 40-year high in January, creating both opportunity and risk for oil and natural gas companies. The U.S. Bureau of Labor Statistics (BLS) said Thursday the consumer price index (CPI) jumped 7.5% in January from the…

February 10, 2022
RPC Eyes Upping Fracturing Fleet Count for 2022

RPC Eyes Upping Fracturing Fleet Count for 2022

Oilfield services (OFS) and equipment provider RPC Inc. said it might activate another hydraulic fracturing fleet but added that likely would not occur during the first six months of this year. CEO Richard A. Hubbell said that he sees “many indications of continued growing activity levels and improved pricing” in the new year. Last spring,…

January 27, 2022
Feeling Inflation Pinch, Permian E&Ps Targeting Further Efficiency Gains

Feeling Inflation Pinch, Permian E&Ps Targeting Further Efficiency Gains

Continued efficiency improvements are expected to be critical for natural gas and oil producers in the Permian Basin this year as cost inflation for oilfield services (OFS) takes full effect.

January 24, 2022
Oil, Natural Gas Prices Drive Sustained Surge in Inflation

Oil, Natural Gas Prices Drive Sustained Surge in Inflation

Lofty oil and natural gas prices played outsized roles in fueling spikes in inflation this year. November proved no exception, with price increases reaching a pace last recorded nearly four decades ago. The U.S. Bureau of Labor Statistics (BLS) said Friday the consumer price index surged 6.8% in November from the same month a year…

December 10, 2021
Lower 48 Oil, Gas Spending Seen Rising 19% in 2022 on Cost Inflation, Activity Uptick

Lower 48 Oil, Gas Spending Seen Rising 19% in 2022 on Cost Inflation, Activity Uptick

Spending by Lower 48 oil and natural gas producers is set to rise by 19.4% next year to $83.4 billion from an expected $69.8 billion in 2021, according to new analysis by Rystad Energy.  Service price inflation is expected to account for $9.2 billion of the spending growth, with increased activity contributing $8.6 billion, said…

December 3, 2021
U.S. E&Ps Said on Verge of ‘Energy Super Cycle’ Heading into New Year

U.S. E&Ps Said on Verge of ‘Energy Super Cycle’ Heading into New Year

The U.S. exploration sector delivered its fourth straight quarter of outperformance in 3Q2021, setting the sector up for what should be solid growth in 2022, according to energy prognosticators. Solid cash flow by the domestic exploration and production (E&P) companies was accelerated by the high commodity prices. However, the three-month period also represented a “stabilized…

November 24, 2021
U.S. Oil, Natural Gas Projects Said Likely to Face 10% Hike in Wages, Supply Chain Inflation to 2023

U.S. Oil, Natural Gas Projects Said Likely to Face 10% Hike in Wages, Supply Chain Inflation to 2023

U.S. oil and natural gas projects are forecast to face higher costs going forward as wages rise along with supply chain inflation. The engineering, procurement, construction and installation (EPCI) segment may be the “first to record a double-digit percentage hike in costs,” according to a new analysis by Rystad Energy.  Domestic EPCI costs, driven by…

November 20, 2021
E&P, OFS Sectors Coming on Strong in First Quarter

E&P, OFS Sectors Coming on Strong in First Quarter

Winter is over for the long-distressed energy sector in North America, with upstream operators and service companies likely to have more spring in their steps as they offer up first quarter results.

April 24, 2017