The Weekly US Oil & Gas Update: 23 December 2013
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The Oil & Gas Weekly is compiled by Todd Erickson. Todd is a veteran executive manager in the North American E&P market.
He has management experience in high-growth oil & gas service organizations performing a leadership role in operations, strategy, and corporate development with a track record of identifying opportunities and best-practices, creating execution plans, then developing effective teams and leaders to execute them.
Learn more about Todd here
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Rig Counts - select states with key plays |
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Oil & Gas Prices - Bloomberg/EIA |
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General News |
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Energy Information Administration expects US oil production to peak in 2019 at 9.61 million barrels per day Advances in horizontal drilling and multi-stage hydraulic fracturing have brought about a massive increase in domestic oil production. In 2011, domestic oil production amounted to just 38% of the country's total needs for crude oil. The EIA expects that number to increase to 63% in 2019, when it estimates the US will be producing almost as much oil as in its heyday in 1970. This represents an upgrade from last year's EIA report by two million barrels per day, which illustrates just how quickly the landscape has changed from technological advances. Article here
Statoil looking for creative ways to reduce flaring Producers in the Bakken flare about 30% of all the natural gas produced, due to lack of an adequate takeaway and processing infrastructure. One of the area's leading producers, Statoil, is looking for creative solutions to do something about this. It is currently piloting a device manufactured by GE capable of compressing the natural gas at the well site, enabling it to be used to fuel heavy-duty combustion engines nearby, such as drilling rigs and heavy trucks. Right now, there aren't too many of these that can utilize compressed natural gas (CNG) as a fuel source, but Statoil thinks that will change. It plans on having eight of these CNG units running by the end of 2014. Article here |
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Unconventional Oil & Gas News |
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Safety worries increase for shipping Bakken crude by rail Two accidents in the last six months involving Bakken crude resulted in explosions and fire, with one killing 42 people. Crude oil isn't typically expected to be highly flammable, but the light crude from the Bakken burns much easier than heavier oils. BNSF Railway has raised its safety standards in response to this risk, limiting the top speed of these crude trains, and requiring higher levels of attendance from workers. Expect additional scrutiny on this issue as the percent of crude shipped from the Bakken increases from 60% in 2013 to an expected 90% of crude produced in 2014 as E&P companies utilized the flexibility of rail to access better markets. Article here |
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Environment and Safety News |
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Chesapeake pays $3.2 million to settle EPA violations in W. VA In addition to the civil penalty, Chesapeake will spend an estimated $6.5 million to restore streams and wetlands that it damaged while building well locations and access roads. The company allegedly dumped rocks, sand and dirt into the streams and wetlands, a violation of the Clean Water Act. Article here |
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Mergers and Acquisitions News |
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Chief buys Marcellus assets from Chesapeake for $500 million The transaction includes 40 drilled wells along with significant undeveloped acreage in Bradford, Lycomin, Sullivan, Susquehanna and Wyoming counties in Pennsylvania. Article here |
