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With oilprices low and showing no sign of an immediate rebound, the industry is beginning to pull back on spending. Oilprices have dropped around 30 percent since summer highs, raising fears among producers across the globe. Yet, many oil majors are relatively diversified, with large holdings downstream.
Chevron’s focus on optimizing the thermal management of the Kern River field has resulted in a steady drop in the steam:oil ratio (barrels steam water per barrel oil), resulting in improved economics of the field even with slowly declining production. Source: Chevron. Here, Chevron has reduced its steam:oil ratio (i.e.,
It may be difficult to look beyond the current pricing environment for oil, but the depletion of low-cost reserves and the increasing inability to find major new discoveries ensures a future of expensive oil. The industry did not log a single “giant” oil field.
Argentina offers one of the few places on earth where oil companies are not suffering from the full force of the collapse in prices. Argentina regulates oilprices, a policy originally intended to insulate the public from the whims of the market, protecting people from triple-digit crude prices.
Ceres recently released a new report concluding that coal-to-liquid (CTL) and oil shale technologies face significant environmental and financial obstacles—from water constraints, to technological uncertainties to regulatory and market risks—that pose substantial financial risks for investors involved in such projects.
The oil majors reported poor earnings for the fourth quarter of last year, but many oil executives struck an optimistic tone about the road ahead. The collapse of oilprices forced the majors to slash spending on exploration, cut employees, defer projects, and look for efficiencies. by Nick Cunningham of Oilprice.com.
A GlobalData analysis of recent wells for 26 operators in the Permian basin indicates a break-even oilprice range from US$21 to US$48 per barrel with lateral lengths ranging from 4,500 ft to 10,500 ft. On 25 June, the price of a 42-gallon barrel of West Texas Intermediate Crude (WTI) was $68.08.
Oil companies have eyed the Arctic for years. With an estimated 90 billion barrels of oil lying north of the Arctic Circle, the circumpolar north is arguably the last corner of the globe that is still almost entirely unexplored. Statoil, the semi-state-owned oil company from Norway, has been an offshore leader and Arctic pioneer.
One casualty of the oilprice downturn could be the megaproject. For years, as conventional oil reserves depleted and became increasingly hard to find, oil companies ventured into far-flung locales to find new sources of production. The collapse of oilprices, however, could kill off the megaproject.
France-based Total is the first oil supermajor aggressively to enter new areas of business including solar plus storage and distributed generation, notes Lux Research in a new report : “Superpower Darwinism: What Big Oil Can and Cannot Do About Total’s Billion-Dollar Battery Move.”.
With the recently concluded nuclear deal between Iran and the P5+1 countries, oilprices have already started heading downward on sentiments that Iran’s crude oil supply would further contribute to the already rising global supply glut. oil sector is likely to witness a lot more layoffs than we have seen so far?
BP has sanctioned the $9-billion Mad Dog Phase 2 project in the United States, despite the current low oilprice environment. Oil production is expected to begin in late 2021. Oil production is expected to begin in late 2021. In 2013, BP (operator, with 60.5% —Bob Dudley, BP Group Chief Executive. Earlier post.).
Rising OilPrices Lead to Investments in Natural Gas. Oil markets are traditionally sensitive to a pick up in economic activity. As the economy continues to slowly improve over the next 12 months, Cascadia predicts that oil will hit $100 per barrel. There are too many loopholes, including free permits and. extraction.
The question today is just how much Argentina is willing to change and how this plays into a low oilprice environment that is already negatively impacting investment elsewhere. This translates to an estimated 802 trillion cubic feet of technically recoverable shale gas and 27 billion barrels of oil.
Will be competitive at an oilprice of $45 to $90 at their commercial date. This technology could avoid both the need for significant capital investment to upgrade refineries to produce more low sulfur fuel oil (LSFO) and greater dependence on costlier, low sulfur crudes. Technologies that stretch today’s assets and resources.
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