Attracted by upside potential, myriad opportunities and sufficient funding, investors have poured into the upstream sector over the last decade, spending nearly $245 billion on exploration and production (E&P) transactions, according to a new study from analytics firm IHS Markit.
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ExxonMobil Profits Plunge 60%; Chevron Posts Third Straight Quarterly Loss
The second quarter proved to be no better than the first three months of the year for the two largest U.S. oil and gas operators, with No. 1 ExxonMobil Corp. recording a 60% slump in year/year profits and Chevron Corp. recording its third straight loss in a row, this time for $1.5 billion.
Devon to Take $1B for Natural Gas-Weighted Properties in East Texas, Permian, Granite Wash
Devon Energy Corp. is selling almost $1 billion of natural gas-weighted upstream assets in East Texas, the Permian Basin’s Midland sub-basin and in the Anadarko Basin’s Granite Wash formation, which together produce about 37,000 boe/d.
Florida Supreme Court Nixes FPL’s Upstream NatGas Cost Recovery Through Rates Plan
Florida’s highest court has overturned a decision by state regulators to allow Florida Power & Light Co. (FPL) to charge ratepayers for costs related to its investment in upstream development in Oklahoma’s Woodford Shale.
Energy Operators Still Cite Digital Tech Investments as Keys to Improve Wells, Capital Efficiencies
Upstream operators may be scrutinizing their dwindling finances, but they haven’t stopped investing in digital technologies to improve well completions and capital efficiencies, according to a new global survey.
Shell Scuttles Separate Unconventional Arm; Odum Stepping Down
Royal Dutch Shell plc, which less than four months ago launched an unconventional natural gas and oil resources arm to build its expertise, has decided to roll the business back into upstream operations. U.S. operations chief Marvin Odum, who oversees the unconventional unit, also is stepping down.
Shell Creating Standalone Unconventional Resources Arm
Royal Dutch Shell plc announced a major revamp of its upstream business on Tuesday, which would separate operations into three businesses, including a new unconventional unit to oversee shale, tight natural gas/oil and oilsands exploration and development worldwide.
Upstream Investments ‘Very Much at Risk’ at $50 Oil, Says Wood Mackenzie
Upstream operators may be looking for cost reductions averaging up to 30% on projects in the low commodity world, but squeezing the oilfield services sector may only achieve a savings of 10-15%, which means investments will take a back seat until prices rebound, Wood Mackenzie said Monday.
ExxonMobil Profits Down by Half, Chevron’s Tumble 90% in Grim Quarterlies
ExxonMobil Corp. and Chevron Corp., the largest natural gas and oil producers in the United States, posted their worst quarterly performances in years following the extended decline in commodity prices, signaling what is looking like a prolonged downturn across the sector.
Upstream Margins Squeezed as Costs Escalate, Profits Decline, Says IHS
The global upstream industry’s capital expenditures totaled $720 billion in 2013, 18% higher than a year before, but margins were squeezed as costs escalated and profits declined, an IHS Inc. analysis has found.