Oil Gas Prices

Industry innovations honored at 2014 World Oil Awards

HOUSTON – In its thirteenth year of honoring the upstream energy industry' s top innovators and innovations, World Oil announced the winners of its 2014 World Oil Awards during a black tie gala in Houston. This year' s honorees took home trophies in 16 categories, covering areas as diverse as drilling and data management. The evening' s Master of Ceremony was Shara Fryer, Morning News Anchor, KTRH. The ceremony began with a keynote speech from James Pappas, President of the Ultra-Deepwater Programs for RPSEA, the Research Partnership to Secure Energy for America.

21 Oct 2014 | 7:56 am EDT

Mexico to offer shallow-water licenses

Mexico, which reformed its hydrocarbon law at the end of 2013, will begin the prequalification process for shallow-water bids in the first-half of November, according to officials with Mexico’s energy department.

21 Oct 2014 | 5:40 am EDT

Petronas said to test bank interest for $12 billion LNG finance

KUALA LUMPUR, Malaysia (Bloomberg) -- Petroliam Nasional Bhd. is testing lender interest for as much as $12 billion of financing for a Canadian LNG project, according to people familiar with the matter. Malaysia’s state-owned oil company, known as Petronas, and four energy partners from China, Japan, India and Brunei, have asked bankers to indicate their willingness by the end of this week to help fund Pacific NorthWest LNG Ltd.’s proposed project in British Columbia, said the people, who asked not to be named because the process is private. The request doesn’t mean that the Petronas-led group has decided to proceed with the development, said one of the people.

21 Oct 2014 | 3:09 am EDT

Lamprell completes second Caspian Sea drilling unit

Lamprell completes second Caspian Sea drilling unit DUBAI Lamprell successfully completed construction of the second Caspian Sea jackup drilling rig, the "Mercury". Completion of this rig is another significant milestone for the Group, particularly as it has been built under

21 Oct 2014 | 2:45 am EDT

EMC launches QuickSkid solution to connect faster offshore

EMC launches QuickSkid solution to connect faster offshore HOUSTON Emerging Markets Communications (EMC) has reported a new connectivity solution, QuickSkid, which  enables faster, more reliable and flexible communications for the oil and gas industry. Rig owners, operators and service providers

20 Oct 2014 | 6:42 pm EDT

Unconventional oil, gas operators can cut costs by better managing above-ground operations

HOUSTON -- Oil and gas operators can reduce the costs of constructing, drilling and completing unconventional wells, as well as the overall time it takes to complete them, by up to 40% through better planning and management of logistics, contractors and materials, according to a new Accenture report.

20 Oct 2014 | 10:01 am EDT

U.S. accountability office calls for reexamining oil export policy, SPR

The United States’ Government Accountability Office, an independent agency that provides fiscal-related services to the U.S. Congress, has called for the Secretary of Energy to reexamine the country’s crude oil export policy and the Strategic Petroleum Reserve.

20 Oct 2014 | 7:53 am EDT

Brent trades near level seen as OPEC test; WTI rises

LONDON and NEW YORK (Bloomberg) -- Brent crude traded for a fifth day close to a level that’s prompting speculation OPEC will respond by cutting supply. West Texas Intermediate, which fell into a bear market this month, rose in New York.

20 Oct 2014 | 4:51 am EDT

Halliburton reports third-quarter profit that exceeds estimates

HOUSTON (Bloomberg) -- Halliburton Co., the largest provider of fracing services, reported third-quarter profit that beat analysts’ estimates as it boosted its dividend.

20 Oct 2014 | 4:31 am EDT

Texas roughnecks overrun the Best Western as oil rout unnoticed

Texas roughnecks overrun the best western as oil rout unnoticed DAN MURTAUGH CUERO, Texas (Bloomberg) From her little vantage point in Cuero, Texas, of the U.S. shale oil boom, Jill Potts doesn’t see anything to worry about. Yeah, she’s heard

19 Oct 2014 | 5:44 pm EDT

Oil rigs slump by most in two months after prices slide

Rigs targeting oil in the U.S. fell by the most in two months as producers curbed drilling following the biggest price rout since 2012.

17 Oct 2014 | 11:02 am EDT

Shale boom helping American consumers as never before

Shale boom helping American consumers as never before


HOUSTON (Bloomberg) -- Oil traders might see the 27% slide in global prices as a bear market. For U.S. consumers, it’s more like an early holiday gift.

The drop in crude has pulled retail gasoline down more than 50 cents a gallon from the year’s high in April. That means annual savings of $500 for the average U.S. household, which consumes about 1,000 gallons of fuel a year, according to data from the Federal Highway Administration and Energy Information Administration.

“That’s like somebody putting dollars right in your pocket,” David Hackett, the president of Stillwater Associates, an energy consultant in Irvine, California, said by phone on Oct. 14. “That sounds like Christmas presents, going out to dinner, being able to do something.”

Gasoline’s slide represents the biggest benefit that U.S. consumers have seen to date from a record boom in domestic oil production, a surge that’s contributing to a global crude glut and helping reduce international prices. U.S. gasoline is being exported at record levels for this time of year.

The average retail price fell 1.9 cents to $3.144/gal, Heathrow, Florida-based motoring group AAA said on its website. That’s down from this year’s peak of $3.696 in April and the lowest since February 2011. Futures have decreased 86 cents on the New York Mercantile Exchange over the same period, signaling there may be further declines at the pump.

Following Crude

Gasoline is following the larger drop in the oil market. Brent crude, the global benchmark, closed at $84.47/bbl October 16 on the London-based ICE Futures Europe exchange after slipping to $82.60, the lowest level since November 2010. U.S. benchmark West Texas Intermediate settled at $82.70 on the New York Mercantile Exchange, after trading below $80 for the first time since 2012.

Prices are falling with U.S. oil output at the highest level since 1985 and the Organization of Petroleum Exporting Countries producing the most in more than a year. At the same time, the Paris-based International Energy Agency lowered its estimate for global demand growth for this year and next in an Oct. 14 report.

Americans are spending about $230 million a day less on gasoline than they were on July 4, based on prices and consumption, said Michael Green, a Washington-based spokesman for AAA, the country’s biggest motoring group.

‘Free Money’

Most consumers are paying $5 to $15 less to fill their tanks than they were around the Fourth of July, according to Green. “This is free money that people can use for savings or other spending in time for holiday shopping,” he said by e-mail on Oct. 15.

On top of sliding energy prices, food costs fell 0.7% in September, driven lower by eggs, baked goods and meat, IHS Inc., an Englewood, Colorado-based consultant, said in research note on Oct. 15. Combined, the drops stand to improve the holiday season both under the Christmas tree and on the dinner table, said Michael Montgomery, a U.S. economist at IHS.

“The two most observed prices by consumers are food and energy and they play the largest role in forming consumer opinions about inflation, providing a little more room for luxuries rather than facing a squeeze from necessities,” he said in the report.

Retail sales over this holiday season, from November through December, are expected to be up 4.2% percent from last year, according to IHS. That excludes motor vehicles, gasoline and food purchases.

Holiday Season

“This holiday season -- with just about six weeks until Black Friday -- is expected to glitter in comparison to the last two years,” Chris G. Christopher Jr., director of IHS’s U.S. consumer economics group, said in a report on Oct. 15. “The recent news on the consumer front has been relatively favorable, especially as pump prices are falling.”

Black Friday, the day after the U.S. Thanksgiving holiday, marks the start of the holiday shopping season. It falls on Nov. 28 this year.

Americans’ expectations for the economy in October climbed to the highest level in almost two years. A measure tracking the economic outlook increased to 51 this month, the strongest since November 2012, from 41.5 in September, data from the Bloomberg Consumer Comfort Index showed yesterday.

Retail Sales

Retail sales slid 0.3% in September, following a 0.6% gain in August that was the biggest in four months, Commerce Department figures show.

“Reconciling consumer confidence with consumer spending continues to be a challenge,” said Jack Kleinhenz, the chief economist at the National Retail Federation in Washington, who described last month’s retail sales as “surprisingly weak.”

While spending on gasoline accounts for less than 5% of the average person’s disposable income, it has an “undue influence on consumer confidence” because of the way the fuel is sold and paid for, Christopher said Oct. 15 by phone from Lexington, Massachusetts.

“When you go over to that pump, and you squeeze that liquid into your car, you’re seeing the amount going higher and higher, and that’s an unusual way of consuming something,” Christopher said. “It’s the way we purchase it. It’s immediate. Gasoline is different from almost any other consumer item.”

17 Oct 2014 | 8:22 am EDT

Chevron’s Watson sees secure future in global oil thirst

Since taking charge of the world’s third-largest crude producer almost five years ago, Chairman and Chief Executive Officer Watson has presided over an era of skyrocketing costs, dramatic market swings, declining production and rising concern about how fossil fuels might be harming the planet. He’s convinced he’s on the right track.

17 Oct 2014 | 7:55 am EDT

Oil servicers say tumbling crude hasn’t changed outlook

The recent tumble in crude oil prices hasn’t shaken the faith of two of the world’s biggest providers of drilling and production services.

17 Oct 2014 | 7:37 am EDT

Odfjell Drilling and William Jacob Management form an alliance

Odfjell Drilling and William Jacob Management form an alliance HOUSTON  Odfjell Drilling and William Jacob Management (WJM) signed a cooperation agreement under which the companies will mutually deliver engineering services of offshore drilling facilities to the global energy market. The

16 Oct 2014 | 7:44 pm EDT

AFGlobal completes integration of Special Flanges

AFGlobal completes integration of Special Flanges HOUSTON AFGlobal has completed its integration of Special Flanges based in Italy. AFGlobal acquired the company in December, 2013. “When combined with our value chain, the integration of these assets greatly enhances the capacity

16 Oct 2014 | 7:33 pm EDT

U.S. oil production surges to highest since 1985 on shale

WASHINGTON, D.C. (Bloomberg) -- U.S. crude production climbed to the highest level in more than 29 years last week as the shale boom moved the country closer to energy independence. Output rose 0.9% to 8.95 MMbpd, the most since June 1985, according to Energy Information Administration estimates. The combination of horizontal drilling and hydraulic fracturing has unlocked supplies from shale formations in the central U.S., including the Bakken in North Dakota and the Eagle Ford in Texas.

16 Oct 2014 | 7:32 am EDT

Apache announces resignation of CFO, names interim CFO

HOUSTON -- Apache Corporation has announced that Alfonso Leon, executive V.P. and CFO, has resigned to pursue other opportunities.

16 Oct 2014 | 5:13 am EDT

DNV GL calls for industry collaboration to quantify fracing risk

HØVIK, Norway -- To address widespread concerns about fracing risks, particularly related to contamination of groundwater, DNV GL has invited industry and other stakeholders to a joint industry project (JIP). The aim is to collect data, develop and validate quantitative risk assessment methodologies and outline risk management strategies that can be widely accepted by all relevant parties.

16 Oct 2014 | 4:13 am EDT

Chevron’s Indonesia deepwater gas project to face delay

SAN RAMON, California (Bloomberg) -- Chevron Corp. is delaying developing a second phase of a deepsea natural gas project off Indonesia’s Borneo island due to start in 2019. The final investment decision for Gendalo-Gehem won’t be taken this year, a Chevron spokesman said in an emailed statement Oct. 15. The San Ramon, California-based company has yet to submit a revised development plan for it, Zudaldi Rafdi, a spokesman at SKK Migas, Indonesia’s upstream oil regulator, said in a phone interview Oct. 15.

16 Oct 2014 | 3:56 am EDT


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