An Industry Always in Transition—Part 2
Financial Headwinds, AI, and Black Swans Many financial analysts are pointing out that more than $120 billion in oil patch debt, with possible attendant bankruptcies, comes due between 2020 and 2022. Again and again, news articles mention the belief that mergers and acquisitions will inevitably consolidate the industry. What word summarizes where we are? Uncertainty. […]
Prices Drop Due to Bearish Inventory Report
[contextly_auto_sidebar] US crude oil stocks increased by 0.8 MMBbl. Gasoline and distillate inventories increased 5.4 MMBbl and 4.1 MMBbl, respectively. Yesterday afternoon, API reported a crude oil build of 1.41 MMBbl alongside gasoline and distillate builds of 4.9 MMBbl and 3.2 MMBbl, respectively. Analysts, to the contrary, were expecting a crude oil draw of 2.76 […]
Gas Draw Above Market Expectation, Prices Rise
[contextly_auto_sidebar] Natural gas storage inventories decreased 19 Bcf for the week ending November 29, according to the EIA’s weekly report. This was higher than the market expectation, which was a draw of 14 Bcf. Working gas storage inventories now sit at 3.591 Tcf, which is 591 Bcf above inventories from the same time last year […]
An Industry Always in Transition—Part 1
Foundational Transformations I recently participated in the 10th anniversary of the formation of the Berg-Hughes Center at Texas A&M. The theme of the celebration was geoscientists and petroleum engineers in a time of energy transition. From my perspective, our industry has always been in transition—from Azerbaijan to Titusville; the Spindletop salt domes to the East […]
Crude Withdrawal and Expected Extension To Production Cuts By OPEC Increase Prices
[contextly_auto_sidebar] US crude oil stocks decreased by 4.9 MMBbl. Gasoline and distillate inventories increased 3.4 MMBbl and 3.1 MMBbl, respectively. Yesterday afternoon, API reported a crude oil draw of 3.72 MMBbl alongside gasoline and distillate builds of 2.93 MMBbl and 0.79 MMBbl, respectively. Analysts were expecting a crude oil draw of 1.79 MMBbl. Total petroleum […]
Gas Draw Meets Expectations, Forecast Changes Bring Volatility
[contextly_auto_sidebar] Natural gas storage inventories decreased 28 Bcf for the week ending November 22, according to the EIA’s weekly report. This was higher than the market expectation, which was a draw of 27 Bcf. Working gas storage inventories now sit at 3.610 Tcf, which is 548 Bcf above inventories from the same time last year […]
Prices Drop As The Crude Inventory Builds Up
[contextly_auto_sidebar] US crude oil stocks increased by 1.6 MMBbl. Gasoline and distillate inventories increased 5.1 MMBbl and 0.7 MMBbl, respectively. Yesterday afternoon, API reported a crude oil build of 3.64 MMBbl alongside a gasoline build of 4.38 MMBbl and a distillate draw of 0.67 MMBbl. Analysts, to the contrary, were expecting a crude oil draw […]
From IP to Peak Rates—Navigating Uncertainty
I became very familiar with the vagaries of initial potential (IP) test data reporting when I set a number of horizontal wells during the first wave of horizontal drilling in the Austin Chalk in the Dilley, Texas-area in the early ’90s. We’d be drilling a hole and off in the distance I’d see a large […]
The Week Ahead For Crude Oil, Gas and NGLs Markets – November 25, 2019
[contextly_auto_sidebar] CRUDE OIL US crude oil inventories increased 1.4 MMBbl last week, according to the weekly EIA report. Gasoline inventories increased 1.8 MMBbl while distillate inventories decreased 1.0 MMBbl. Total petroleum inventories posted a decrease of 5.0 MMBbl. US crude oil production was flat to the previous week, per EIA, while crude oil imports were […]
First Draw of the Season Exceeds Expectations
[contextly_auto_sidebar] Natural gas storage inventories decreased 94 Bcf for the week ending November 15, according to the EIA’s weekly report. This is higher than the market expectation, which was a draw of 87 Bcf. Working gas storage inventories now sit at 3.638 Tcf, which is 506 Bcf above inventories from the same time last year […]