The latest business combination in the U.S. shale patch is signaling a path forward for the troubled sector. In contrast to the bankruptcies of the past three months, Devon Energy 's $2.56 billion all-stock, low premium deal for rival WPX Energy brings together two companies with assets in a few oil-producing basins and relatively low debt levels. Investors supported the idea with a rally in shares. WPX closed up 16.4% on Monday and Devon gained 11%, buoyed by the prospect of a combined [Read more]
Trump says he will approve permit for Canada to Alaska railway to free landlocked oil
President Donald Trump wrote on Twitter over the weekend he would issue a permit for a railway project from Canada's oil sands to ports in Alaska, a project that has many regulatory hurdles but could help spur shipments of the landlocked crude to foreign markets and U.S. refiners. "It is my honor to inform you that I will be issuing a Presidential Permit for the A2A Cross-Border rail," Trump wrote on Twitter. He said his decision was based on the recommendation of fellow Republicans Dan [Read more]
Oil falls as demand worries counter U.S. stimulus hopes
Oil prices fell on Tuesday, paring gains from the previous session, as persistent demand concerns due to the coronavirus pandemic outweighed hopes for a new U.S. stimulus package. More than 1 million people have died of COVID-19 as of Tuesday, a Reuters tally showed, with fatalities and infections surging in several countries. U.S. West Texas Intermediate (WTI) crude futures dropped 80 cents, or 2%, to $39.71. The more-active Brent crude futures for December fell 79 cents, or 1.86%, [Read more]
Oil edges lower as rising virus cases cloud demand recovery outlook
Oil prices dipped again on Monday as rising coronavirus cases upset hopes for a smooth recovery in fuel demand, with crude on track for its first monthly fall in many months after slipping last week. U.S. West Texas Intermediate was at $40.01 a barrel, down 13 cents or 0.3%, following a 2.1% decline last week. Brent crude edged down 8 cents, or 0.2%, to $41.84 a barrel by 0003 GMT after dropping 2.9% last week. Brent is on track to fall for the first month in six while WTI is headed [Read more]
Canadian government commits C$320 mln to aid offshore oil industry
Canada will spend C$320 million ($238.56 million) to support its offshore oil industry, which has struggled as coronavirus pandemic travel restrictions reduced demand, Natural Resources Minister Seamus O'Regan said on Friday. O'Regan said in St. John's, Newfoundland and Labrador, that the funds are intended to support jobs, and could be used for maintenance, upgrades and environmental services. The money falls short of requests from the industry, which included a government stake in a [Read more]
U.S. drillers add rigs for second week, still down for 7th quarter -Baker Hughes
U.S. energy firms this week added oil and natural gas rigs for a second week in a row as some drillers return to the wellpad now that crude prices have held gains made since recovering from coronavirus-linked lows in the spring. The oil and gas rig count, an early indicator of future output, rose six to 261 in the week to Sep. 25, energy services firm Baker Hughes Co said in its closely followed report on Friday. The total rig count fell to a record low of 244 rigs during the week ended [Read more]
Oil steady as market eyes coronavirus hit to demand
Oil prices were little changed on Friday but on track for a weekly fall on concerns that a global resurgence of COVID-19 infections will constrain fuel demand, while the likely return of exports from Libya will add to supply. U.S. West Texas Intermediate (WTI) crude was 14 cents weaker at $40.00. Brent crude was down 2 cents at $41.70 a barrel. Brent is heading for a drop of nearly 3% this week, while U.S. crude is on track for a decline of almost 2%. Both benchmarks are also on track [Read more]
ConocoPhillips sees global oil demand returning
U.S. oil producer ConocoPhillips sees global demand returning to 100 million barrels per day and growing from there, a senior executive said on Thursday. The view stands in contrast to rival BP Plc , which sees the coronavirus pandemic leaving a lasting effect on global energy demand, though ConocoPhillips still expects "quite a bit of uncertainty next year" in oil demand, Senior Vice President Dominic Macklon said during a Q&A with Raymond James. Capital spending in 2021 will be [Read more]
Oil edges up to $40, eyeing Libya and U.S. inventories
Oil edged up to around $40 a barrel on Wednesday supported by rising investor risk appetite and a report that U.S. fuel inventories fell, although rising crude supply and concern of stalling demand capped gains. European equities rose after better-than-expected German manufacturing data, giving oil a boost. The American Petroleum Institute said U.S. inventories of gasoline and distillate fuel dropped, while those of crude rose. “The rebound in risk appetite today is lifting oil prices a [Read more]
Shell launches major cost-cutting drive to prepare for “energy transition”
LONDON - Royal Dutch Shell is looking to slash up to 40% off the cost of producing oil and gas in a major drive to save cash so it can overhaul its business and focus more on renewable energy and power markets, sources told Reuters. Shell’s new cost-cutting review, known internally as Project Reshape and expected to be completed this year, will affect its three main divisions and any savings will come on top of a $4 billion target set in the wake of the COVID-19 crisis. Reducing costs is vital [Read more]