News Oil 

How BP found shale profits with ‘crystal ball’ oilfield technology

“The technology provides a panoramic view into the ongoing needs of the oilfield, said Kimberly Krieger, who overseas BP’s shale operations in eastern Texas” reports businessinsider.com. Such technology has helped slash BP’s shale oil and natural gas production costs by 34 percent over five years.BP faces other large rivals in the race to grow U.S. shale production and profits, including Exxon Mobil Corp, Chevron, Shell and Norway’s Equinor.The shale business turned a profit for the first time in 2017, BP said, although the company declined to disclose the figure.BP’s progress…

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News Oil 

BP buying BHP shale assets for $10.5 billion

“BHP paid a combined $20 billion to acquire U.S. shale assets in 2011, and then spent billions more to explore and develop them” writes Rhiannon Hoyle for marketwatch.com. The sale accelerates a reshuffling of assets among global energy companies as oil prices surge to levels not seen since 2014.In striking the deal, BP is attempting a delicate balancing act.But a collapse in energy prices resulted in massive impairment charges, including a more than $7-billion pretax charge in 2016 that is its largest-ever single write down. Source: marketwatch.com Share This:

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News Oil 

BP pays $10.5 billion for BHP shale assets to beef up U.S. business

“Analysts said they had assumed BHP would get between $8 billion and $10 billion in cash for the assets” writes Midwest Communications Inc for 95kqds.com. (Reuters) – BP Plc has agreed to buy U.S. shale oil and gas assets from global miner BHP Billiton for $10.5 billion, expanding the British oil major’s footprint in oil-rich onshore basins in its biggest deal in nearly 20 years.Meanwhile, a unit of Merit Energy Company will buy BHP Billiton Petroleum (Arkansas) Inc and the Fayetteville assets, for $0.3 billion.”It leaves the company good scope…

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News Oil 

Chesapeake Energy plans to sell Utica Shale stake for $2 billion

“Chesapeake, co-founded by shale gas pioneer Aubrey McClendon who died in 2016, has said it will attempt to cut debt by $2 billion to $3 billion this year” reports businessinsider.com. The deal includes 320,000 net acres in the Utica shale with about 920 wells that produce about 107,000 barrels of oil equivalent per day.The Oklahoma City-based natural gas producer said it will use the proceeds to cut its debt, which totaled about $9.83 billion at the end of March. Source: businessinsider.com Share This:

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News 

Cuadrilla granted go-ahead for UK’s first shale fracking project

“After a decade of deliberation and political debate, a shale developer has cleared the final hurdle to begin fracking for shale gas in the UK for the first time” writes Energy Editor for telegraph.co.uk. Government ministers granted Cuadrilla a final consent order days before the summer parliamentary recess, clearing the way for the firm to frack Britain’s first onshore shale gas well at Lancashire’s Preston New Road site.Cuadrilla, which was founded in 2007, plans to apply for another consent order for its second well on the same site before carrying…

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Markets News Oil 

Oil prices rise from 3-month low as more Norwegian oil workers strike

“Brent crude prices rose from a three-month low on Tuesday after more oil workers went on strike in Norway, supporting a market that has been dominated by oversupply issues in recent days” writes unknown author for cnbc.com. The strike, which began last Tuesday, has had a limited impact on Norway’s oil production so far, but some drillers warned of possible contract cancellations if the dispute goes on for a month or more.U.S. oil output from seven major shale formations is expected to rise by 143,000 bpd to a record 7.47…

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News Oil 

Higher oil prices mean US drillers are open for business, says API

“Oil price for Brent crude oil, the most common price measure for oil produced outside of the U.S., closed at around $74 in Thursday trading” writes Ap Photo Hasan for washingtonexaminer.com. The numbers are a “good sign” of industry health in the current high oil price environment and continued demand for U.S. natural gas exports, said Foreman.The federal government’s latest reporting projects that Brent oil prices will remain high through the remainder of 2018 at around $73 per barrel, before dropping to around $69 per barrel in 2019. Nevertheless, with…

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News Oil Regulators 

The world’s becoming more dependent on riskier U.S. shale, Dallas Fed chief says

“Global oil demand will be more dependent on U.S. shale production growth, but there are a number of impediments to shale oil growth that raise the risk that shale will be unable to keep up beyond the short term, according to Dallas Fed President Rob Kaplan” writes Senior Economics Reporter for marketwatch.com. Among the challenges are that the shale industry is facing a shortage of workers.Due to these impediments, “there is a growing likelihood of an eventual global undersupply situation in which shale will be unable to keep up with…

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News Oil 

The natural gas revolution is a uniquely American story

“A study by PricewaterhouseCoopers showed that U.S. oil and natural gas industries supported 10.3 million jobs in 2015” reports washingtonexaminer.com. The story of the shale revolution is not just the scuttled claims that we’re running out of energy resources.Rapidly growing exports of domestic crude oil, petroleum products, and liquefied natural gas have already begun to reduce the U.S. trade deficit.The shale of the shale revolution is what petroleum geologists call the “source rock” — a kind of cradle in which crude oil and natural gas are formed over millions of…

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News Oil 

Gloves back on, OPEC and U.S. shale producers to deepen ties in Vienna

“There are bigger issues at hand besides output that OPEC and shale producers care about.”” reports businessinsider.com. “We expect that they (U.S. shale producers) remain independent and do what’s in the best interest of their country,” Senator Heitkamp said.U.S. shale executives will not be part of those discussions, but will meet elsewhere in Vienna during the week with Falih and other OPEC ministers.U.S. shale producers are prohibited by antitrust law from coordinating their output, making their desire with OPEC to curb volatility and price spikes a difficult one. Source: businessinsider.com Share…

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