New Mexico authorities on Monday published two separate sets of draft rules aimed at curbing methane emissions from oil and natural gas operations. The Energy, Minerals and Natural Resources Department (EMNRD) unveiled what it called “New Mexico’s first comprehensive methane regulations,” which propose 98% natural gas capture from the oil and gas industry by the…
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Interior’s GOM Auction Delayed to Square Covid-19 Impacts
A federal offshore oil and gas lease set for August has been delayed for three months to assess the impact of Covid-19 on U.S. oil and gas markets. The Department of Interior’s Bureau of Ocean Energy Management (BOEM), which oversees the offshore auctions, rescheduled the Gulf of Mexico (GOM) Lease Sale 256 to November. The…
Trading Behemoth Vitol Launching U.S. Upstream Company
Swiss commodities giant Vitol Inc. is seeking to expand its upstream business in the United States with a venture to be headquartered in Houston and led by industry veteran Don Dotson. Vencer Energy LLC is focused on acquiring mature producing oil and gas assets, with a specific focus on key basins in the Lower 48.…
North America Likely Taking Biggest Hit from Pullback in Global Oil, Gas Drilling
The number of oil and natural gas wells likely to be drilled around the world this year is forecast to hit its lowest level since at least the early 2000s, with North America the most impacted from slumping demand in the age of Covid-19. An analysis by Rystad Energy issued on Tuesday pegged the number…
Forum Energy Warns of 2Q Revenue Plunge on ‘Unprecedented’ U.S. Drilling Decline
Global oilfield operator Forum Energy Technologies Inc. said Tuesday second quarter revenue is projected to plunge 37-40% sequentially because of the sharp decline in U.S. oil and gas drilling. The Houston-based operator expects quarterly revenue to be $110-115 million, down by as much as 40% from the first three months of this year. Free cash…
U.S. Rig Decline Said Near Bottom, with ‘Slow, Methodical Recovery’ to Year’s End
The decline in the U.S. oil and natural gas rig count may be close to a bottom, and the current commodity strip could allow activity to grind higher, according to Raymond James & Associates Inc. Analysts Praveen Narra and Kirk Presley Sr. in a note to clients said most of the pain of the downturn…
Improved Natural Gas Pricing Outlook Presents E&P Opportunities in Mexico, Says Former Official
A strengthened outlook for natural gas pricing in 2021 has made the development of natural gas fields in Mexico a more attractive proposition, according to Juan Carlos Zepeda, former head of upstream oil and gas regulator Comisión Nacional de Hidrocarburos (CNH). In a podcast interview with NGI, Zepeda highlighted the central and growing role of…
North American E&P Bankruptcies Rising as Second Wave of Covid-19 Threatens ‘Very Painful’ Rest of 2020
The number of North American exploration and production (E&P) companies seeking bankruptcy protection continues to rise, with 23 operators filing since the start of the year, according to Haynes and Boone LLP. This is four more than what the law firm reported last month, and included former heavyweight Chesapeake Energy Corp. and Permian pure-play Lillis…
Mexico’s Energy Ministry Gives Talos, Pemex 120 Days to Hammer Out Details on Offshore Zama Field
Mexico’s Energy Ministry (Sener) has ordered the unification of the Zama discovery offshore Mexico and has given Houston-based exploration and production company Talos Energy Inc. and Mexican state company Petróleos Mexicanos (Pemex) 120 days to come up with terms of how to carry out joint development of the field. In May, Mexico upstream regulator Comisión…
Lifted by Permian, Appalachia, U.S. Upstream Dealmaking Slightly Better in 2Q
Dealmaking in the United States within the upstream oil and gas sector staged a slight recovery in the second quarter, with three of five deals in Appalachia, but the period still ranks as the third lowest in quarterly value since 2009, according to Enverus. The data analytics company in its summary of 2Q2020 U.S. upstream…