The U.S. natural gas rig count fell one unit to 69 during the week ending Friday (Aug. 21), a small decline overshadowed by a decisive uptick in oil-directed activity, the latest data from Baker Hughes Co. (BKR) show. For the first time since the widespread adoption of measures to limit the spread of Covid-19 began…
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U.S. Midstream Results in 2Q Showed Volume Resiliency, Commitment to Capex Curbs
U.S. midstream management teams doubled down on cost cuts and reduced capital expenditures (capex) during second quarter earnings season. However, many also struck generally optimistic tones about improving volumes and a gradual recovery from the energy slump imposed by the coronavirus pandemic. Overall, “the messaging was really good, particularly around considerably less capex going forward,…
Winter Premium in Play as Nymex Natural Gas Futures Rally; California Cash Slides
Natural gas futures soared higher Tuesday as traders attempted to close the massive gap between the front of the curve and the winter contracts. Despite little change in the fundamental backdrop, the September Nymex futures contract jumped 7.8 cents day/day to settle at $2.417. October climbed 8.0 cents to $2.556. Spot gas prices were mixed…
Covenant, Stuart Combine Lower 48 Well Flowback, Pressure Control Businesses
Houston-based Covenant Testing Technologies LLC said Tuesday it is combining with Stuart Pressure Control to provide well flow and pressure control for operators across the Lower 48. The tie-up is designed to expand services for exploration and production companies in the Permian and Denver-Julesburg basins, as well as the Eagle Ford and Haynesville shales. “In…
Permian Highway Taking Slight Detour, but Scheduled Ramp Still Early ‘21, Says Kinder
Kinder Morgan Inc. confirmed Monday that the 2 Bcf/d Permian Highway Project (PHP), designed to move West Texas supply to the Texas coast, remains on schedule for completion in early 2021. In an opinion piece published last week in the Houston Chronicle, CEO Steven Kean said management had determined the “best option” for the 42-inch…
Chaparral Seeking Chapter 11 Protection, while Lilis Looking to Unload Permian Assets
Anadarko Basin-focused Chaparral Energy Inc. said Monday a voluntary bankruptcy protection plan is in the offing to reduce debt and continue operating. The Oklahoma City-based independent, which filed Chapter 11 petitions in U.S. Bankruptcy Court for the District of Delaware, has a restructuring support agreement (RSA) with funded debt holders to equitize $300 million of…
Oil, Natural Gas Supply from Major U.S. Plays to Continue Falling in September, EIA Says
Oil and natural gas production from seven key U.S. onshore plays is set to decline in September, continuing a downtrend that began earlier this year, according to the latest Drilling Productivity Report (DPR) published Monday by the Energy Information Administration (EIA). EIA expects oil production from the Anadarko, Appalachian, Denver Julesburg-Niobrara and Permian basins, as…
Most Lower 48 Oil Curtailments Coming Back Online by September, Says Analysis
Nearly all of the curtailed U.S. onshore oil volumes shut-in as Covid-19 hampered demand are set to return by the end of the third quarter amid stronger oil prices and a generally brighter market outlook, according to a new analysis by Rystad Energy. The Oslo-based consultancy analyzed the curtailment reactivation schedules of 25 publicly traded…
Permian Oil Drilling Permits Climb, while Lower 48 Natural Gas Stronger
Permits for new oil and gas wells rose 25% month/month in July, with “significant” growth in the Permian Basin, but overall activity was down by two-thirds from a year ago, according to Evercore ISI. The analyst team led by James West each month compiles federal and state permitting data, which provides a window into what…
Oxy Looks to Build Cash Flow, with Low Growth Following $8.4B Loss
Houston-based Occidental Petroleum Corp. is throttling back from growth to ensure it can build cash flow to pay down some big debt maturities due in 2021, CEO Vicki Hollub said Tuesday. The company, better known as Oxy, has set spending priorities on maintenance, debt reduction and eventually a sustainable dividend before expanding, Hollub said during…