Chesapeake Energy Corp. can see some daylight following the deluge of U.S. natural gas, but it won’t be until the end of the year that the producer is able to report a decline in domestic output, CEO Aubrey McClendon said Friday.
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Drilling technologies have transformed the competitive landscape within the oil and gas industry and altered the traditional pricing relationship between crude oil and natural gas, but there’s still plenty of room for horizontal drilling and hydraulic fracturing (fracking) services to grow, according to Standard & Poor’s Ratings Services (S&P).
Chesapeake Energy Corp. on Wednesday pulled the trigger on multiple agreements to sell most of its Permian Basin properties to Royal Dutch Shell plc and Chevron Corp., and it clinched transactions with Global Infrastructure Partners (GIP) for the rest of its midstream assets, which together would give the cash-strapped producer total net proceeds of $6.9 billion.
Offshore operators have been able to mesh with the Department of Interior’s reorganization but challenges remain in implementing new regulations, according to the Government Accountability Office (GAO).
Two municipalities in upstate New York have decided to remain neutral on the issue of high-volume hydraulic fracturing (HVHF) and will wait until the state Department of Environmental Conservation (DEC) issues its report on the practice.
The Permian Basin, as well as the Eagle Ford and Bakken shales, which today are considered the “big three” drivers of U.S. oil production, would remain economic at current costs if West Texas Intermediate (WTI) crude oil prices were to fall to $65/bbl, according to an analysis by Raymond James & Associates Inc. In fact, 13 of 20 onshore oil plays evaluated would breakeven below $65 using current costs, said analysts.
Despite a rig count that has declined significantly, production from the Haynesville Shale during June was climbing, which was reversing the impact of well shut-ins that began in February, an analysis by Bentek Energy LLC found.
Although its profits fell while production grew, Southwestern Energy Co. said its drilling programs in both the Fayetteville and Marcellus shales remain profitable. But the Houston-based company also plans to divert $50 million in midstream capital toward ventures in the Brown Dense formation and the Denver-Julesburg (DJ) Basin.