Oil and gas producer Hess Corp and Conocophillips both expect production for 2019 to be higher than this year even as they spend roughly the same amount of money on exploration, the companies said on Monday.Investors have been urging U.S. oil companies to increase returns on tight spending at a time when they are also looking beyond the Permian Basin, which is getting crowded and costly.Hess said the lion's share of its 2019 capital expenditure will go towards exploration in Guyana [Read more]
U.S. oil drillers cut most rigs since May 2016
U.S. drillers this week cut oil rigs by the most in over two year even as record production has turned the United States into a net oil exporter for the first time in history. Drillers cut 10 oil rigs in the week to Dec. 7, the biggest weekly decline since May 2016, bringing the total count down to 877, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday. The United States last week exported more crude and refined products than it imported [Read more]
Investors slash Bank of Canada rate hike bets as Poloz frets on oil
Expectations for more interest rate hikes in Canada tumbled on Thursday after Bank of Canada Governor Stephen Poloz said the central bank would need to assess the impact of lower oil prices and as a new threat emerged to U.S.-China trade relations.Chances of an interest rate hike at the Bank of Canada's next meeting in January slumped to 10 percent from about 60 percent before an interest announcement on Wednesday, when the central bank left its benchmark interest rate on hold at 1.75 [Read more]
Enbridge Mainline oil pipeline system restarted after temporary outage – trade sources
Enbridge Inc's Mainline oil pipeline system resumed service overnight after a temporary outage and reduced flow rates due to severe weather in Saskatchewan, Canada, trade sources told Reuters on Wednesday. A number of lines on the Enbridge Inc Mainline system, which carries crude and other liquids, and TransCanada Corp's 590,000 barrel-per-day crude Keystone pipeline were hit by power outages on Tuesday in the Western Canadian province of Saskatchewan. Enbridge did not [Read more]
Alberta’s oil cuts could hit light oil producers, rail shipments
Alberta's decision to mandate output cuts to reduce a supply glut will have negative effects on North American producers of lighter oil used for blending and U.S. refiners importing crude via rail, even as several major Canadian energy companies cheered the move. Canada's oil production is at a record 4.6 million barrels a day, but producers cannot get oil to market because the pipelines that cross into the United States are full. Pipeline construction, particularly in Canada, has not kept up [Read more]
Oil producer Canadian Natural sets lower 2019 budget
Canadian Natural Resources Ltd on Wednesday forecast 2019 capital budget about C$1 billion ($753 million) lower than last year, blaming a lack of market access for its oil and "dysfunctional" government processes.The country's largest oil and gas producer set 2019 capital budget at around C$3.7 billion, compared with C$4.7 billion in 2018, with maintenance capital targeted at about $3.1 billion. The Calgary-based company expects 2019 production to be between 1.03 million [Read more]
Two key Canada-to-U.S. oil pipelines hit by disruptions
Two major pipelines bringing oil from Canada to the United States were hit by disruptions on Tuesday, with TransCanada Corp's Keystone line shutting down, while Enbridge Inc's Mainline pipeline was hit with outages and reduced flow rates.TransCanada's 590,000 barrel-per-day crude Keystone pipeline was shut due to a third party utility issue, according to a shipper on the line and traders. There was no estimated restart timeline for the line, one source said, citing a notice to [Read more]
Oil prices advance 1% on expectations of OPEC led output cuts
Oil prices rose by more than 1 percent on Tuesday, extending bigger gains from the previous day amid expected OPEC-led supply cuts and a mandated reduction in Canadian output. U.S. West Texas Intermediate (WTI) crude futures were at $53.53 per barrel at 0742 GMT, up 58 cents, or 1.1 percent, from their last close. International Brent crude oil futures were up 70 cents, or 1.1 percent, at $62.39 per barrel. Both crude benchmarks climbed by around 4 percent the previous session after [Read more]
LNG buyers try to ditch U.S. gas commitments
LONDON/SINGAPORE, Dec 4 - Several large liquefied natural gas (LNG) players have tried to offload their obligation to buy future cargoes from the United States, shedding excess commitments made years ago in the rush for new sources and commercial terms for the fuel. The sale of multi-year "strips" of LNG cargoes represent portfolio adjustments by the buyers rather than backlash against U.S. gas, several Asian and Europe-based traders said. But it was a timely reminder that there is only so [Read more]
Saudi energy minister says OPEC’s deal to cut output uncertain – BBG
Saudi oil minister said on Tuesday it was too soon to say if OPEC and its allies would cut production as the terms of a deal remain unresolved, Bloomberg reported.Khalid Al-Falih's comments come as OPEC and its allies are working towards a deal this week to reduce oil output by at least 1.3 million barrels per day, four sources told Reuters, adding that Russia's resistance to a major cut was so far the main stumbling block. Al-Falih told Bloomberg that he saw an oversupplied market, [Read more]