The Trump administration is prepared to tap U.S. emergency oil reserves if necessary after drone attacks shut oil output in Saudi Arabia, the world's largest crude exporter, a Department of Energy spokeswoman said. Energy Secretary Rick Perry "stands ready to deploy resources from the Strategic Petroleum Oil Reserves if necessary to offset any disruptions to oil markets as a result of this act of aggression," spokeswoman Shaylyn Hynes said. Yemen's Iran-aligned Houthi group [Read more]
Global spare oil capacity in U.S. hands after Saudi outage
An attack on Saudi oil facilities on Saturday is believed to have disrupted half the country's production capacity, making the United States the only real holder of the global supply cushion via its ability to raise own output or to soften sanctions against other major oil producers.Saudi Arabia has yet to comment on the extent of damage on its oil production but industry sources have said some 5-6 million barrels per day (bpd) or 5-6% of global supply have been affected. Saudi Arabia, the [Read more]
U.S. oil drillers cut rigs for fourth week in a row -Baker Hughes
U.S. energy firms this week reduced the number of oil rigs operating for a fourth week in a row as producers cut spending, leading to slower growth in crude output. Drillers cut five oil rigs in the week to Sept. 13, bringing the total count down to 733, the lowest since November 2017, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday. In the same week a year ago, there were 867 active rigs. More than half the total U.S. oil rigs were [Read more]
U.S. briefly overtakes Saudi Arabia as top oil exporter: IEA
Global oil demand is weathering economic headwinds, the International Energy Agency (IEA) said on Thursday, buoyed by lower prices brought on by abundant supply as the United States briefly dethroned Saudi Arabia as the world’s top exporter. “With oil prices currently about 20% lower than a year ago, there will be support for consumers,” the IEA said in its monthly report. “Booming shale production has allowed the U.S. to close in on, and briefly overtake, Saudi Arabia as the world’s top [Read more]
GE begins divestment of Baker Hughes with $2.7 bln share sale
General Electric Co (GE) on Wednesday said it plans to reduce its ownership in oil and gas company Baker Hughes A GE Co to 38.4% from 50.4% at June-end, and aims to raise $2.7 billion in the process. The U.S. conglomerate, which will lose majority control of Baker Hughes, said it would raise the amount through a public offering of 115 million Baker Hughes Class A shares priced at $21.50 each, and through a private sale of $250 million Class B Baker Hughes shares to the oilfield services [Read more]
Enbridge urges Canadian regulator to avoid intervening in pipeline plan
Enbridge Inc called on Canada's energy regulator on Wednesday to ignore calls from some of its shippers and avoid intervening in the pipeline company's contentious proposal to revamp contracts on its Mainline network. The written submission to the Canada Energy Regulator (CER) is the latest salvo in a dispute between Calgary-based Enbridge and some of Canada's biggest oil companies over the future of the Mainline network. The Mainline is North America's biggest pipeline system and ships [Read more]
U.S. natgas futures slide from near 14-week high as weather moderates
U.S. natural gas futures slipped on Wednesday from a near 14-week high on forecasts for a little less cooling demand over the next two weeks than previously expected and a continued slowdown in export growth. Front-month gas futures for October delivery on the New York Mercantile Exchange were down 3.2 cents, or 1.2%, to $2.548 per million British thermal units at 8:28 a.m. EDT (1228 GMT). On Monday, the contract closed at its highest since May 29. Despite the decline, the front-month [Read more]
Enbridge investors cheer Mainline overhaul despite Canadian producer protests
Enbridge Inc's plan to overhaul contracts on its Mainline pipeline system has outraged many Canadian shippers but is cheered by investors who see monetizing existing infrastructure as a safer bet than trying to build new pipelines. The Mainline is North America's largest pipeline network, transporting nearly 3 million barrels per day, or 70%, of crude from western Canada to the U.S. Midwest. Many shippers opposed say Enbridge is abusing its market power and the changes will hurt Canadian [Read more]
Oil and gas majors sign deal to implement blockchain in Bakken oilfield
A group of oil and gas companies has agreed to begin testing blockchain, a technology at the heart of digital currencies, in a bid to lower administrative costs in their field operations while also reducing payment disputes and chances for fraud. The OOC Oil & Gas Blockchain Consortium, whose members include Chevron Corp , ConocoPhillips , Exxon Mobil Corp , Equinor and Royal Dutch Shell , among others, has awarded a contract to Data Gumbo to pilot the technology for water handling [Read more]
Oil hits six-week high on hopes of extended OPEC output cuts
Oil futures hit a six-week high on Tuesday, rising for a fifth day on optimism that OPEC and other countries may agree to extend production cuts in a bid to support prices. West texas intermediate was 27 cents, or 0.5%, higher at $58.12 a barrel, while brent was up 26 cents, or 0.4%, at $62.85 a barrel by 0349 GMT. Brent touched its highest since Aug. 1, while WTI crude rose to the highest since July 31. U.S. oil gained more than 2% on Monday, while Brent finished the day 1.7% higher as [Read more]