The U.S. rig count was 1,875 in July 2014, up from 1861 in June 2014; Texas rig count was 897 in July 2014, up from 891 in June 2014; The Eagle Ford Shale rig count was 212 in July 2014, down from 214 in June 2014.
Tag: Oil
Texas Oil and Gas Extraction Jobs Grew by 2.3% from April 2014 to May 2014
The oil and gas extraction industry in Texas gained 2,500 jobs from April 2014 to May 2014. Compared to May 2013, the cumulative number of jobs added in this industry is 9,700, an increase of 9.4%.
Image Source: http://www.eliteexploration.com/texas-oil-gas-companies/
Job Openings in Texas for Petroleum Engineers, Technicians, and Personnel Decreased from April 2014 to May 2014
The number of job openings in Texas for “derrick operators” and “roustabouts” decreased from 294 in April 2014 to 283 in May 2014, while the searcher-to-job opening ratio increased from 2.54 to 2.63 in the same span.
Image source: http://wonderfulengineering.com/what-is-petroleum-engineering/.
The Economics of Offshore Wind Power @awea
A recent study ‘Offshore Wind Market and Economic’ looks at the economics of the wind market in the U.S. A few of the highlights from the report.:
- There are approximately four gigawatts (GW) of offshore wind installations worldwide. Nearly all of
this activity has centered on northwestern Europe, which has led the industry’s development since 1999, but China is gaining market position. - Thirty-three announced offshore wind projects lay in varying stages of development in the U.S.,
primarily along the Atlantic Coast. - Much of the expertise gained in the oil and gas sector has been leveraged in the offshore wind sector. Early turbine installation vessels were jack-up barges repurposed from the oil and gas sector.
- U.S. offshore wind development faces significant challenges: (1) the relatively high cost of offshore
wind energy; (2) a lack of infrastructure such as transmission and purpose-built ports and vessels;
and (3) uncertain and lengthy regulatory processes - The development of an offshore wind industry in the U.S. will depend on the evolution of other
sectors in the economy. Factors within the power sector such as the capacity or price of competing
power generation technologies will affect the demand for offshore wind. Factors within industries that compete with offshore wind for resources (e.g., oil and gas, construction, and manufacturing) will affect the price of offshore wind power
Texas oil boom continues as Australian oil and gas exploration successfully drills in Eagle Ford area
According to a company press release, New Standard Energy Limited announced that it reached target depth at its second well in the Eagle Ford shale the Peeler Ranch-6H well.
The company stated that the they completed the wells within expected time and budget forecasts. According to the company, the two wells were drilled in parallel lateral lengths, targeting the same Eagle Ford hydrocarbon bearing zone to maximize production and minimize associated drilling, hydraulic fracturing and production tie-in costs.
The company will shift operational focus to fracture stimulation in April.
The company anticipates stimulating both wells together using the
“zipper frac” method. The zipper frac method alternates fracture stages between the two wells, and causes an incremental increase in fracture interaction, leading to better recovery.
More on zipper frac method:
The economics of ending oil export bans: who wins and who loses
A recent article in the New York Times explored the brewing debate concerning the current U.S, ban on exporting oil outside of the U.S.
In a nutshell, the producers want to export oil while the refiners want to keep the oil in the US
The refiners: The refiners want to keep the oil in the US so they have more oil to refine. Keeping the oil in the U.S. also keeps refining competition from abroad in check.
Keeping the export ban would possibly lower prices for oil and gas products, refiners argue. To refiners exporting oil cuts into their bottom line.
Oil producers: On the other side of the equation the oil producers are concerned that having the restriction to only selling the United States will eventually lower their profits by reducing the price of crude oil in the U.S.
Natural gas in the price of natural gas has seen that same type of phenomena over the last decade as Shale and hydro-fracturing has led to much lower natural gas prices in the US
The concern among oil producers is that the lower price (that results from the export ban) would eventually cut into their bottom line as more and more crude oil is put on the market with the new discoveries in South Texas and other places in the United States
In the long run producers are concerned that there would be an exit of producers and or a reduction of new finds in the United States. Since the price that they would receive for crude oil would be lower.
The natural gas market is a good example of the potential impact that crude oil producer see. The natural gas industry faced and continues to face lower prices in part due to the fact that it is not as easy to export natural gas. As a result of not being able to export natural gas readily from United States the large number of hydro-fracturing finds in the United States have stayed in United States. As a result the price of natural gas products has fallen. That is clearly the concern that is clearly the concern of the crude oil producers in United States.
Texas oil expansion continues as Phillip 66 invest $3 billion in two new facilities 60 miles south of Houston
According to FuelFix, Phillips 66 approved a $3 billion investment in two facilities 60 miles south of Houston.
- A planned liquefied petroleum gas export terminal in Freeport capable of exporting 4.4 million barrels of products like butane and propane overseas every month by 2016.
- A new fractionation facility in Old Ocean that will separate natural gas liquids into chemicals used in plastics manufacturing and other industries.
Combined the two Brazoria County facilities would create 50 permanent jobs in southeast Texas, Phillips 66 says. The economic impact of the expansion is magnified as the money flows through the area and creates additional jobs and economic opportunities for supplies and other vendors related to the Oil an Gas industry.
Week in Energy
- SolarWorld looks to close alleged loopholes in tariffs against Chinese solar manufacturers
- Zuckerman’s Frackers presents a balanced, informative and detailed insights into the industry.
- Sweetwater, Texas gets ready for drillers
- City of Fort Worth sues driller over natural gas royalties
SolarWorld looks to close alleged loopholes in tariffs against Chinese solar manufacturers
The New York Times reports that SolarWorld, a major maker of solar panels, is asking the Commerce Department to impose new duties on imported modules made of certain components from China or Taiwan.
Learn more about the complaint and the US agency responsible for pursuing it (USIT.gov): (Google Search)
Zuckerman’s Frackers presents a balanced, informative and detailed insights into the industry.
Frackers is a lively but informative book about the recent development of the hydro fracturing industry. The stories focus mainly on developments from 1990 to 2013. Zuckerman provides the necessary detail to get the reader to be able to understand the technology without boring them to death. The fast moving biographical sketches of some of the key figures, such as George Mitchell, makes the tale interesting on a personal level. Zuckerman does all this without editorializing (until the end of the book which is an optional read). Great book for anyone interested in learning about the fracking industry.
Sweetwater, Texas gets ready for drillers
Austin American Statesman: http://www.mystatesman.com/news/news/opinion/as-shale-oil-drilling-draws-closer-sweetwater-lead/ncPNX
Sweetwater Economic Development: http://www.sweetwatertexas.net/cline-shale-oil-play
City of Fort Worth sues driller over natural gas royalties
City of Fort Worth hires the well know Fort Worth law firm of Cantey Hanger to pursue royalty lawsuit.
How far down do water rights go?
Some say down to the center of the earth. Other say that it is ok to drill and capture water that spills over to another’s land.
The Texas Supreme Court will hear arguments in Jan 2014.
From The Texas Tribune:
The Texas Supreme Court is scheduled to hear arguments on Jan. 7 in a dispute between a company that operates injection wells in Liberty County and a nearby rice farm that says wastewater from those wells has migrated into a saltwater aquifer below its land. It calls the migration trespassing, for which it should be compensated.
Suncor increases sand tar oil production; using rail instead of pipeline to move product
The New York Times reports that Suncor, a leading Canadian oil sands producer, will increase production in 2014. The company anticipates using rail instead of pipeline to move oil to its refineries.
The Suncor website provides a detailed description of the oil sands process.
From their website:
Near Fort McMurray, Alta., Suncor recovers bitumen from oil sands through its mining and in situ operations. The bitumen from both operations is then upgraded to refinery-ready feedstock and diesel fuel.
The in situ process uses horizontal wells to reach the oil sands ore. The top well injects steam to heat the reservoir, allowing the bitumen to flow to the lower well where it is collected and piped to upgrading facilities. Graphic:
