According to the U.S. Energy Information Administration (or EIA), the top seven unconventional oil plays accounted for 95% of domestic oil production growth. They also accounted for all domestic natural gas production growth during 2011–2013.
Increasing rig counts can cause prices to decrease in the long term. This happens because more rigs mean an increasing number of wells producing oil. Oil production growth is directly related to the number of operating oil-targeted rigs.
Oil rigs have a positive relationship with crude oil prices and oil production. The number of rigs in play will loosely follow prices with a lag. Oil producers keep increasing the number of rigs drilling for oil as long crude oil prices make production profitable.
The U.S. natural gas rig count was up to 340 rigs last week, which marks the highest natural gas rig count since March 14, 2014.
Last week’s rise in U.S. oil rigs was a continuation of rig addition, indicative of oil companies’ sustained ability to produce oil at current prices.
Out of 1,584 active oil rigs in the U.S., the majority are in the Permian Basin. Rig counts gauge drilling activity of oil companies.
The number of horizontal rigs hit a record high last week. Oil rig count is an important indicator of the upstream activity of oil and gas companies and oilfield service companies.
Offshore rigs decreased by one in last week’s rig count. This is still the second highest offshore rig count in the past 11 months.
Year-to-date, the onshore U.S. rig count is up ~10%. Onshore rig counts can gauge the activity levels of predominantly land-based upstream energy companies.
Rising rig counts are a good sign for oil and gas producers. They’re also a good sign for oilfield service providers.
Despite the strain that the Macondo incident put on BP, the company continues to reward shareholders handsomely in the form of share buybacks (which boosts earnings per share). It has also been paying hefty dividends.
In 2013, BP produced 363,000 barrels per day of crude oil from the U.S. This production was 20% less than the 453,000 barrels per day it recorded in 2011. In 1H14, production improved to 413 barrels per day.
If the $18.5 billion penalty charge is indeed imposed, BP may find its coffers inadequate to fulfill its obligations. It may be forced sell more assets. Some of its potential sale targets include BP’s projects in Australia, Brazil, and some oil fields in Norway.
As of the end of June, BP PLC (BP) has set aside $3.5 billion for any potential penalty in anticipation of any unfavorable ruling under the Clean Water Act. By the end of June, BP has recorded $42 billion (pre-tax) charges related to the matter.
Deepwater Horizon was a deepwater, offshore oil drilling rig owned by Transocean (RIG) and operated by BP Plc. (BP). On April 20, 2010, while drilling at the Macondo Prospect, there was an explosion on the rig caused by a blowout that killed 11 crew members.
BP PLC (BP) is one of the world’s largest integrated oil and gas companies. Its operations spread across 80 countries around the world, including Angola, Argentina, Australia, Azerbaijan, Egypt, Trinidad, the UAE, the UK, and the U.S.
BP PLC (BP), the British energy major, was held accountable for “gross negligence” in a U.S. federal court ruling over the oil spill incident that took place in April 2010.
The U.S. is the largest thermal coal producer in the world. However, its share in the seaborne thermal coal market—the export market—has remained small. So far, the majority of the thermal coal produced in the U.S. is consumed domestically. In 2013, domestic power producers used 858 million tons of thermal coal. Thermal coal exports were only 52 million tons.
Cloud Peak Energy (CLD) announced that it signed a deal to sell its 50% stake in the Decker mine in Montana. It’s selling the stake to its joint venture partner—Ambre Energy. Ambre Energy already holds the other 50% stake in the mine.
Ambre Energy was founded in June 2005. It’s an Australian-American coal and oil shale company. The company’s Australian headquarters are located at Brisbane. The head American office is located at Salt Lake City, Utah. The company operates in three business lines—U.S. coal export infrastructure, international coal marketing and trading, and U.S. thermal coal production.