Despite OPEC’s strategy of flooding the oversupplied market with tons of crude, American oil production has not fallen off a cliff. And now that prices have rallied back to $50 a barrel, there are early signs that U.S. shale is on the rebound, too. Just look at how the closely-watched Baker Hughes oil rig count has stopped…Details
Energy and mining giant BHP Billiton has started tapping into its backlog of drilled oil wells in Texas and could profitably drill new wells if oil prices hold above $50 a barrel, Chief Executive Andrew Mackenzie said. The move to bring new production online is the latest sign that the recent rally in oil prices from…Details
Tokyo Gas plans to acquire a one quarter interest in a U.S. shale gas field, taking advantage of slumping commodity prices to buy at a bargain. The Japanese company will purchase the interest in an Eagle Ford shale development from a U.S. company for more than $48 million as early as June. Japan’s biggest city gas…Details
Royal Dutch Shell is putting unconventional energy at the heart of its long-term growth plans, and believes lessons from the revamp can be applied across the company, according to an exclusive report by Reuters news agency. Greg Guidry, head of the Anglo-Dutch group’s unconventionals business, told Reuters a drive to slash costs and streamline decision-making…Details
Natural gas from shale basins in the US is expected to deliver over 50% of the total production through 2040 to support more exports, an Energy Information Administration report has concluded. A review from the EIA finds about half of all of the natural gas produced in the US now comes from shale gas reserves…Details
The Mancos Shale in the Piceance Basin of Colorado in the USA contains an estimated 66 trillion cubic feet of shale gas, 74 million barrels of shale oil and 45 million barrels of natural gas liquids, according to an updated assessment by the U.S. Geological Survey. The estimate is for undiscovered, technically recoverable resources. The…Details
Global oil markets will “move close to balance” in the second half of the year as lower prices take their toll on production outside OPEC, the International Energy Agency said. The world surplus will diminish to 200,000 barrels a day in the last six months of the year from 1.5 million in the first half,…Details
Natural gas production from America’s biggest shale formations is poised to slide by the most in three years as tumbling crude oil prices force the United States’ energy explorers to cut back on drilling for both fuels. Gas output from the top seven shale deposits will fall by 1.1% to 45.93 billion cubic feet a…Details
India has become the first country in Asia to buy US shale gas after state-owned GAIL booked a ship of liquefied natural gas (LNG) from Cheniere Energy Inc’s Sabine Pass plant in Louisiana. GAIL bought the cargo on spot basis and will receive it at the Dabhol LNG import terminal in Maharashtra, a company official…Details
Oil major BP PLC and China National Petroleum Corporation have signed a production-sharing contract for shale gas exploration, development and production in the Neijiang-Dazu block in the Sichuan Basin, China.
The two companies agreed to exploit resources in the Neijiang-dazu block in southwestChina’s Sichuan Basin, an area of approximately 1,500 square kilometres.
BP Group Chief Executive Bob Dudley said “We are looking forward to working together withCNPC on technology, operational and subsurface techniques in unconventional resources.”
China continues to be an important part of BP’s portfolio, he said.
This PSC is the first deal to come out of a BP and CNPC cooperation agreement signed last October. It is also BP’s first shale gas PSC in China.
BP’s 2016 Energy Outlook predicts that by 2035 shale gas will account for a quarter of the total gas produced globally and China will be the world’s largest contributor.