Nabors Industries Inc., the largest onshore drilling fleet operator and the biggest supplier of pressure pumping equipment, is not optimistic about seeing gains in the U.S. oil or gas patch through the rest of this year, CEO Tony Petrello said Wednesday.
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A report developed by the Eagle Ford Shale Task Force released Tuesday outlines the history and facts of the booming South Texas oil and gas play in 155 pages. The report addresses topics such as workforce development, infrastructure (pipelines, roads and housing), regulations, water quality, economic benefits, flaring and air emissions, as well as issues affecting landowners, mineral owners and royalty owners. The task force was formed by Railroad Commission of Texas Commissioner David Porter in 2011 (see Shale Daily, July 29, 2011). “In 2011, the Eagle Ford Shale supported almost 50,000 full-time jobs in 20 counties and contributed over $25 billion dollars to the South Texas economy,” the report said. “From 2011 to 2013, daily hydrocarbon liquid production, including natural gas liquids, increased from 100,000 to 700,000 b/d. These developments have made South Texas one of the most prominent energy-producing regions in the United States.”
Most exploration and production (E&P) executives believe shale natural gas prices have bottomed out, with 87% predicting that prices will stay the same or increase over the next two years, according to a survey of 357 North American executives.
Despite a decided turn toward more winter-like weather in a number of regions of the United States on Monday, the expected decrease in natural gas demand tied to the Christmas Holiday proved to be enough to send nearly all pricing points lower, with a majority of the declines recorded across the country coming in at more than a dime.
The physical market lost a dime on average Thursday, but it was a mixed performance with gains in producing regions such as the Gulf Coast, Midcontinent and Rockies unable to offset free-falling prices in the Northeast and East.
Noble Energy Inc. has agreed to sell oil and natural gas properties in Kansas, including about 250 producing wells on approximately 14,000 net acres, to an affiliate of Citation Oil & Gas Corp. for $140 million as part of an ongoing divestiture plan, the Houston-based company said Monday.
The physical market ticked higher in most regions of the country on Wednesday except for much of the Northeast, where forecasts of cooler temperatures prompted drops from a few pennies to more than 80 cents. Gulf and California locations were firm.
Pennsylvania midstream operator UGI Energy Services Inc. on Wednesday launched plans to replace the diesel now powering its Marcellus Shale drilling fleet with liquefied natural gas (LNG). UGI’s plan mirrors a pilot initiated by EQT Corp. earlier this month to convert its Marcellus diesel rigs (see Shale Daily, July 6).
The cash market overall Tuesday was on average a penny higher with mild strength evident in most regions. More than a handful of Northeast points weakened. Futures found the rarefied air of Monday’s gains unsustainable and recorded a double-digit loss. At the close August had dropped 14.6 cents to $2.737 and September had lost 14.8 cents to $2.728. August crude oil dropped $2.08 to $83.91/bbl.