In our top story, oil prices hit $80 per barrel for the first time in more than three years May 17 on concerns Iranian exports could fall, reducing supply in an already tightening market. Among the analysts weighing in, Boston Consulting Group’s Jamie Webster tweeted “lower for longer has officially shifted from price to cost.” WTI also hit a three-year high coming in at $72.13 cents on May 17.
Pipeline operators Enbridge Inc. and the Williams Cos. Inc. are consolidating their respective pipeline assets in response to FERC’s proposed tax overhaul that removes certain benefits for master limited partnerships. Enbridge said this week it would bring its independent units and liquids and gas pipeline assets under a single entity in stock deals valued at $8.9 billion. Separately, Williams said it would buy out the remaining stake in its MLP in a $10.5 billion all-stock deal.
Hess Corp. CEO John Hess spoke during a Citi Global Energy & Utilities conference this week and said when it comes to low development costs and financial returns, offshore Guyana trumps the Permian’s Delaware Basin. In part, he said that’s because you get your money back in about three years in Guyana. He added there is a lot of pre-investment necessary in the Delaware Basin, and you really don’t get your money back for about 10 years.
Also, during Australia’s APPEA conference this week, Chevron Australia managing director Nigel Hearne unveiled a vision to stimulate the country’s next major LNG wave by inviting Woodside and Shell to join forces in an unprecedented, collaborative effort to unlock stranded gas from the North West Shelf and bring it to market. Hearne said such a move could inspire a new era for “Australia’s energy crown,” the Carnarvon Basin.
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Comstock Continues Wildcatting, Drops Two Legacy Haynesville Rigs
2024-02-15 - The operator is dropping two of five rigs in its legacy East Texas and northwestern Louisiana play and continuing two north of Houston.
TPH: Lower 48 to Shed Rigs Through 3Q Before Gas Plays Rebound
2024-03-13 - TPH&Co. analysis shows the Permian Basin will lose rigs near term, but as activity in gassy plays ticks up later this year, the Permian may be headed towards muted activity into 2025.
CEO: Continental Adds Midland Basin Acreage, Explores Woodford, Barnett
2024-04-11 - Continental Resources is adding leases in Midland and Ector counties, Texas, as the private E&P hunts for drilling locations to explore. Continental is also testing deeper Barnett and Woodford intervals across its Permian footprint, CEO Doug Lawler said in an exclusive interview.
Chevron Hunts Upside for Oil Recovery, D&C Savings with Permian Pilots
2024-02-06 - New techniques and technologies being piloted by Chevron in the Permian Basin are improving drilling and completed cycle times. Executives at the California-based major hope to eventually improve overall resource recovery from its shale portfolio.
For Sale, Again: Oily Northern Midland’s HighPeak Energy
2024-03-08 - The E&P is looking to hitch a ride on heated, renewed Permian Basin M&A.