U.S. crude production soared nearly 600,000 barrels per day in August to record of 12.4 million, buoyed by a 30% increase in Gulf of Mexico output, according to government data released on Thursday. The U.S. has become the world's largest oil producer with output surging to records above 12 million bpd this year as technological advances have increased production from shale formations across Texas, North Dakota and New Mexico. All three states saw output rise in August. Additionally, oil [Read more]
Canada seen drilling fewer oilfield wells in 2020
Canada will see a 10% drop in oilfield wells drilled in 2020, as producers reduce investment, the Petroleum Services Association of Canada (PSAC) forecast on Thursday. PSAC predicted that 4,500 wells will be drilled in Canada next year, down from 5,000 in 2019. Corporate investment is declining due to pipeline constraints and uncertainty about government policy, the industry group said in a statement. [Read more]
Marketlink oil pipeline running at reduced rates after Keystone leak
TC Energy Corp's Marketlink crude oil pipeline was operating at reduced rates, three sources said on Thursday, due to supply disruptions as Keystone pipeline was shut after a leak in Walsh County, North Dakota. The Marketlink pipeline has a capacity of 750,000 barrels per day (bpd) and flows south from Cushing, Oklahoma, the delivery point for U.S. crude futures, to Nederland, Texas. Marketlink is connected to the 590,000-bpd Keystone oil pipeline system, a key transporter of Canadian [Read more]
Encana plans to move base to U.S. amid pipeline crunch in Canada
Encana Corp will shift base to the United States and become Ovintiv Inc, the Canadian oil and gas producer said on Thursday, as Canada faces pipeline capacity shortages that have led many companies to move from the country's energy sector.Rivals Royal Dutch Shell , ConocoPhillips and Suncor Energy have either been selling their Canadian assets or have scaled back investments as pipeline space crunch impacts prices.Encana meanwhile has been adding assets in the United States and [Read more]
Alberta eases oil curtailment rules for additional crude by rail
The Canadian province of Alberta said on Thursday it would allow companies to produce additional oil if they move it by rail, easing curtailment rules that were designed to reduce transport bottlenecks. The special production allowance takes effect in December, Energy Minister Sonya Savage said in a statement. "The special allowance program will protect the value of our oil by ensuring that operators are only producing what they are able to move to market," Savage said. Major producers, [Read more]
Shell down 4% after warning of slowing global economy
** Oil major Shell slumps nearly 4% to 22.4 pounds as a profit beat was dampened by co flagging global economic slowdown** Q3 profit of $4.8 bln topped estimates of $3.91 bln ** "Weak macroeconomic conditions" and "challenging outlook" create uncertainty about co's buyback time frame - CEO Ben van Beurden says** If losses hold, Shell to turn negative for the year vs. the FTSE 100's +8% YTD ** By 1110 GMT, Shell shares made up for nearly half of the FTSE [Read more]
Oil prices face pressure as global economy slows
Oil prices are likely to be pressured this year and next as low demand from a slowing global economy and a surge in U.S. shale output offset support from OPEC production cuts and Middle East supply risks, a Reuters survey shows. The poll of 51 economists and analysts forecast Brent crude would average $64.16 a barrel in 2019 and $62.38 next year. This is compared to the previous month's $65.19 projection for 2019 and $63.56 for 2020, and an average oil price so far this year of $64.23. The [Read more]
Oil prices drop as trade worries overshadow fall in stocks
Oil prices fell on Wednesday as a possible delay in resolving the U.S.-China trade war overshadowed a drop in U.S. crude inventories. U.S. West Texas Intermediate (WTI) crude was down 27 cents, or 0.5%, at $55.27 a barrel, having dropped 0.5% in the previous session. Brent crude was down 18 cents, or 0.3%, at $61.41 a barrel by 0405 GMT after gaining 2 cents on Tuesday. U.S. crude inventories fell 708,000 barrels in the week ended Oct. 25 to 436 million, compared with analysts' [Read more]
U.S. natgas futures surge over 6% for second day on cold November forecasts
U.S. natural gas futures surged over 6% for a second day in a row on Tuesday to their highest level in five weeks on forecasts the cold weather blanketing much of the country will remain through at least mid-November. Traders noted if the current cold forecasts hold, utilities will start pulling gas out of storage during the week ended Nov. 8, a week before the five-year average. On their last day as the front-month, gas futures for November delivery on the New York Mercantile Exchange [Read more]
Oil prices edge lower ahead of U.S. stockpile numbers
Oil prices slipped on Tuesday as investors awaited U.S. crude inventory data for a pointer on oil demand trends, while concerns about slower economic growth overshadowed signs of a thawing in the trade war between Washington and Beijing. U.S. West Texas Intermediate (WTI) crude was down 80 cents at $54.92, after falling 1.5% in the previous session. Brent futures were down 54 cents at $61.02 a barrel, having fallen 0.7% on Monday. Prices rose sharply last week amid a decline in U.S. [Read more]