Shift

The growing abundance of shale gas and liquids production is leading to a “paradigm shift” in the global oilfield services industry that should lead to business growth over the next two years, especially in the U.S. land market, FBR Capital analysts said in a new report.

Newfield Exploration Co. said it will spend about $1.7 billion this year on exploration and production activity, with two-thirds directed to oil plays and the rest focused on liquids-rich natural gas. The amount is equivalent to the company’s estimate of 2011 cash flow from operations.

The U.S. energy sector is “at the cusp” of a structural shift, boosted by abundant shale gas and liquids, developing scarcity in domestic coal and the never-ending quest for oil, FBR Capital analysts said in a report.

The U.S. energy sector is “at the cusp” of a structural shift, boosted by abundant shale gas and liquids, developing scarcity in domestic coal and the never-ending quest for oil, FBR Capital analysts said in a new report.

A flurry of shale business combinations over the last three years “are just the beginning of an asset shift in the industry,” according to a report issued by PricewaterhouseCoopers USA (PwC).

Chevron Corp. CEO John Watson said Thursday the buy-out of Marcellus Shale player Atlas Energy Inc. didn’t signal a fundamental shift in the company’s strategy; rather, it was an attractive opportunity that came at the right time.

The power shift in the U.S. House of Representatives will result in Republicans being named to chair committees that likely will be more friendly to the oil and natural gas industry, as well as business in general. In the Senate, only Sen. Lisa Murkowski’s, (R-AK) fate is unknown.

The power shift in Congress will result in Republicans being named to chair committees that likely will be more friendly to the oil and natural gas industry, as well as other energy sectors.

In addition to announcing a significant shift in its shale strategy, Fort Worth-based Range Resources said this week that it has trimmed its quarterly losses from $29.8 million, or 19 cents/share during 3Q2009 to $8.2 million, or 5 cents/share for 3Q2010.