Oil prices

Lower 48 Tight Oil Output to Recover, but Possibly Not As Strong Pre-Covid, Says OPEC

Lower 48 Tight Oil Output to Recover, but Possibly Not As Strong Pre-Covid, Says OPEC

U.S. tight oil production should recover quickly as world energy demand recovers from Covid-19, but Lower 48 output may not again hit its previous forecasts, the Organization of the Petroleum Exporting Countries said Thursday. The Saudi-led oil cartel, aka OPEC, in its flagship 14th annual World Oil Outlook (WOO), cited the “unprecedented scale and impact”…

October 8, 2020
Permian Output Seen Ramping Up in 2021

Permian Output Seen Ramping Up in 2021

Production in the Permian Basin will likely decline through the year but then begin to increase through at least 2026, even if prices do not rise significantly, according to analysts. “We see the Permian as a relative winner among domestic basins given favorable production economics, independent of a call on higher commodity prices,” the Morgan…

October 6, 2020
Energy Sector Job Losses Said Unlikely to Return Until Late 2021

Energy Sector Job Losses Said Unlikely to Return Until Late 2021

The downturn in the U.S. energy sector caused by the Covid-19 pandemic is “truly like no other” as 70% of the jobs lost this year may not come back until the end of 2021, the Deloitte consultancy said Monday. However, the economic devastation presents opportunities for the oil and gas industry to accelerate its transformation…

October 5, 2020
PE Funds Said Pitching Oil Path Value Over Growth in Low-Price WTI Environment

PE Funds Said Pitching Oil Path Value Over Growth in Low-Price WTI Environment

Existing “bread and butter” portfolios are outshining new investments by private equity (PE), but the bigger focus is on reducing costs amid this year’s unprecedented oil market collapse. Chief Investment Officer Dan Pickering, who launched Pickering Energy Partners (PEP) in 2004 as a predecessor to energy investment and merchant banking firm Tudor, Pickering, Holt &…

October 1, 2020
Strong Balance Sheet Key to ConocoPhillips Managing ‘Really Dark Days’ of Oil Downturn

Strong Balance Sheet Key to ConocoPhillips Managing ‘Really Dark Days’ of Oil Downturn

ConocoPhillips’ strategic pivot in 2016 to a value model rather than a growth model provided the Houston-based independent the financial capability to “make rational economic decisions” during the oil market downturn, including curtailing around 400,000 b/d of production. ConocoPhillips Executive Vice President and Chief Operating Officer Matt Fox said the company’s strong balance sheet, which…

September 29, 2020
Uneven Oil Price Recovery Seen as Various Factors Weighing on Market

Uneven Oil Price Recovery Seen as Various Factors Weighing on Market

The rebound in oil prices since the lows of April is expected to slow and future gains will depend on a variety of factors including the strength of oil demand and a global economic recovery as the world still wrestles with the Covid-19 pandemic, according to Moody’s Investors Service. Moody’s expects constrained oil supply to…

September 21, 2020
OPEC Reduces Oil Demand Forecast into 2021 from Covid-19’s Lingering Impacts

OPEC Reduces Oil Demand Forecast into 2021 from Covid-19’s Lingering Impacts

The Covid-19 pandemic’s crushing impact to energy demand and prices has led the Organization of the Petroleum Exporting Countries, aka OPEC, to again reduce its forecast for oil into 2020. The International Energy Agency (IEA) on Tuesday also reduced for the second consecutive month its outlook for oil demand. IEA also warned that Covid-19 may…

September 15, 2020
‘Substantial’ E&P Bankruptcies Likely Before Year’s End, Says Haynes and Boone

‘Substantial’ E&P Bankruptcies Likely Before Year’s End, Says Haynes and Boone

Oil and natural gas market conditions heading into September are not trending in an optimistic direction for the U.S. industry, with the continued presence of Covid-19 cases casting a pall over energy demand, according to Haynes and Boone LLP. In an updated Oil Patch Bankruptcy Monitor report published Monday, the Dallas-based law firm said the…

September 15, 2020
Williston Pure-Play Northern Oil Expanding into Permian, Citing Favorable Economics Amid Downturn

Williston Pure-Play Northern Oil Expanding into Permian, Citing Favorable Economics Amid Downturn

Northern Oil and Gas Inc., which up to now has kept its focus on the Williston Basin, said it has acquired a working interest in Permian Basin acreage operated by EOG Resources Inc. On the deal, Northern revised higher its third quarter production guidance to 25,000-30,000 boe/d. Minnetonka, MN-based Northern said it expects production from…

September 15, 2020
Lower 48 E&P Universe Forecast to Shrink, ‘Starved for Capital’ as Liquidity Dries Up

Lower 48 E&P Universe Forecast to Shrink, ‘Starved for Capital’ as Liquidity Dries Up

The market disruption from Covid-19 is forecast to unsettle long-term energy consumption patterns and heighten price volatility, with better financed operators ready to pounce on distressed Lower 48 assets, according to Moody’s Investors Service. An extended oil price slump partly sparked by the pandemic, “will amplify disparities between stronger and weaker” exploration and production (E&P)…

August 24, 2020