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Oil production in Texas has hit its highest monthly rate on record,
more than doubling in less than three years, according to new federal
The state pumped 2.7 million barrels of crude per day
during September, the highest average since monthly record-keeping began
in January 1981. That marked a 30 percent jump over September 2012,
according to data from the U.S.Energy Information Administration.
Texas' oil production peaked in 1972, when it produced an average of
3.4 million barrels per day, according to annual data from the
Call it black gold or Texas Tea, but it's flowing rapidly in the Lone
Star State. New figures show oil production in Texas reached 2.7
million barrels a day in September, the highest rate since 1981 when
such records started being kept by the U.S. Energy Information
Administration. Total oil production inTexashas
more than doubled in the past three years alone, and the state now
accounts for 35% of the total crude oil produced in the U.S.
The biggest factor in this rapid growth has been the development of the Permian Basin in West Texas and the
47% of all drilling rigs in the United States are in Texas, and
almost half of Texas rigs are in the Permian Basin according to
Workforce Solutions in Midland.
The Permian Basin has 380 drilling rigs, and Oklahoma, the state that has the second most, has 176.
they are working now [in the Basin's oilfields] is literally 4,000 feet
thick and other places its only 30 feet thick," said Executive Director
at the petroleum museum Kathy Shannon.
to Shannon the Permian Sea retreated millions of years ago, and it left
the Permian Basin which created an area rich in oil.
LONDON (Reuters) - Brent crude oil climbed towards $110 a barrel on Monday after Chinese data showed strong industrial activity and as social and political unrest in Libya limited supply from the key North African producer.
Manufacturing growth in China, the world's biggest crude oil importer, stayed at 18-month highs in November due to robust domestic and foreign demand, the official Purchasing Managers' Index showed.
Oil exports from Libya are only around 130,000 barrels per day (bpd), Deputy Oil Minister Omar Shakmak told Reuters in an interview on Monday, more than 1.
If you have wondered why the Texas economy has out-performed the rest of the country in recent years, you need look no further than that familiar check mark-shaped portion of South Texas that delineates the boundaries of the Eagle Ford Shale. It is a blessing for Texas that the first successful Eagle Ford well was drilled in 2008, at about the same time the US economy was falling into a deep recession.
I was fortunate to attend the second annual Eagle Ford Consortium conference in
The growing scale of the oil and natural gas boom in Texas continues to stun most observers. We have discussed this phenomenon periodically (see prior pieces here and here) , but the newest developments are so off the charts that an update is warranted.
We’ve pointed out a couple of times that Texas’s oil production represents roughly 30% of the total US output, an amazing statistic, especially considering that the percentage was below 15% just a few years ago. In May, that statistic became even more amazing, as Texas accounted for 34.
Oil production in Texas’s Eagle Ford shale formation rose 58 percent in May from the prior year. The nine fields that make up the majority of Eagle Ford yielded 581,923 barrels of crude a day, according to preliminary data released by the Texas Railroad Commission, which oversees oil and gas drilling in the state. The fields produced 368,770 barrels daily in May 2012.
February output was revised to 574,032 barrels a day from the preliminary report of 530,689, the commission said. Production totals typically increase in subsequent months as the state receives revised, corrected or late reports.
Texas oil production continues to surge as the fracking boom frees up previously unreachable oil, and a recent report finds that if the state were an independent country, it would rank 10th overall in production, according to the American Enterprise Institute. Based on international oil production numbers released by the Energy Information Administration, the current pace of annual increase in Texas was 30 percent or more, indicating production could surpass 3 million barrels per day
In less than half a decade, the United States could become the top oil producing country in the world, thanks to the rise in the production of shale oil in the country, a Harvard Kennedy School Belfer Center researcher said in a policy brief.
There is huge potential in U.S. shale oil production, the researcher, Leonardo Maugeri – a former manager at Italian oil and gas giant Eni S.p.A. – said, with the largest U.S. shale formations capable of sustaining a total of more than 100,000 producing wells, compared with about 10,000 actual producing wells in the country today.
Continental Resources $CLR CEO Harold Hamm has a dream that one day the United States will be energy independent. What's truly remarkable about the dream is that there is enough science and technology that could make it a reality. [b]In fact, according to Hamm and others, the U.S. could be the world's top oil producer by 2017, in addition to being completely energy independent by 2020.[/b] Can this really be true?
Consider: Texas produces enough oil that if it were a country, it alone would rank 15th in the world among oil-producing nations.
I will admit that I've always found the "Peak Oil" debate to be a
little bit confusing, especially because both the words "peak" and "oil"
turn out to have some ambiguity to them. But recently a couple of my
favorite bloggers were debating the implications of the "unconventional
oil" boom for the debate, withKarl Smith proclaiming peak oil deadwhileNoah Smith says it lives on. My approach would be to try to skip past some of these definitional issues and look at prices.
The North American shale oil boom could spur the biggest rise in
non-OPEC supply growth in the past decades next year helping meet strong
global demand and eroding the market share of OPEC countries, the
International Energy Agency said on Thursday.
energy agency said in its monthly report that even though global oil
demand growth in 2014 will rise to its strongest levels since 2010, the
supply picture remained quite comfortable, meaning oil prices should
avoid steep spikes.]
The United States imported about 40 percent of its oil in 2012. So
where are we getting it from? It depends a lot on where you live. Over
at Business Insider, Rob Wile digs up this fascinating map from RBC Capital Markets:
For refineries on the East Coast, the majority of their imported oil
comes from Africa, mainly Nigeria and Angola. By contrast, refineries in
the Midwest get virtually all of their imported oil via pipeline from
Also note that relatively little of America’s imported crude comes
from the Middle East, with the bulk of that (about 1.
California is sitting on a massive amount of shale oil and could
become the next oil boom state. But only if the industry can get the
stuff out of the ground without upsetting the state's powerful
Running from Los Angeles to San Francisco,
California's Monterey Shale is thought to contain more oil than North Dakota's Bakken and Texas's Eagle Ford -- both scenes of an oil boom that's created thousands of jobs and boosted U.S. oil production to the highest rate in over a decade.
Texas - December 24, 2012 - Petro
Lucrum is pleased to announce that it has appointed Stephen Edson as VP of
Finance. This signifies the launch of Petro Lucrum’s
oil & gas finance division to focus on a strong USA oil & gas program.
focuses on going public transactions as well as public / private equity and
debt investment into Petro Lucrum ventures and funds. Mr. Edson provides finance expertise at Petro Lucrum to
support portfolio ventures through offering project and corporate finance
advisory to private and public companies in upstream E&P and OFS.
This month's issue of Oil & Gas Financial Journal focuses on private capital and the availability of funding for upstream and midstream projects. The consensus among our expert contributors appears to be that 2013 will continue to be an attractive time to sell or recapitalize middle market companies by accessing private equity.
In our interview with Premier Natural Resources' Chris Jacobsen this month, he notes that his company's partnership with investment giant Kohlberg Kravis Roberts has created a portfolio of properties that produces about 250 million cubic feet equivalent of gross natural gas production per day, and this continues to grow.
Houston, Texas - December 19, 2012- Richard Vetter in his capacity with Petro Lucrum serves
as E & P Legal Officer. Mr. Vetter focuses on acquisition and divestitures
as well as equity and debt investment into Petro Lucrum ventures and funds. His
diverse experience over 40 years brings a track record and expertise to support
Petro Lucrum ventures.
Prior to joining Petro Lucrum, Mr. Vetter was an attorney
and business executive that has held senior management position with Cashco
Energy Corporation; a leveraged buyout investment firm Merchant
Capital Group and Board Member of three portfolio companies with combined sales
exceeding $50 million.
Two years ago, no one had ever heard of the potential of the Cline Shale oil play.
Now, the 140-mile-long and 70-mile-wide oil shale is anticipated to be one of the largest oil plays in American history.
Projections for the Cline Shale contribute to the expectation for the U.S. to become the world leader in oil production by 2017.
As the result of exploration by oil companies Devon Energy and
Chesapeake Energy, the Cline Shale is quickly emerging as the richest
oil play known. Other development companies with interests include
Firewheel Energy, Laredo Petroleum, Exco, and Callon Petroleum, among
Crude oil futures started the week on a positive note on improved
sentiment following recent U.S. and Chinese positive economic
data, which offered bullish cues from the world's top two oil
On the New York Mercantile Exchange, light, sweet crude futures
for delivery in January traded at $86.21 a barrel at 0802 GMT, up
$0.28 in the Globex electronic session. January Brent crude on
London's ICE Futures exchange rose $0.33 to $107.35 a barrel.
On Friday, data from the Labor Department showed the U.
Oil rose above $112 per barrel on Monday on signs that economic growth
is picking up in China, the world's second-biggest oil consumer, and on
positive data from the U.S. manufacturing sector.
readings from official and private sector surveys of China's vast
manufacturing sector showed activity picked up November, adding to
evidence the economy is reviving after seven quarters of slowing growth.
"Crude oil prices are beginning
the new week of trading up thanks to positive economic data from China,"
said Carsten Fritsch of Commerzbank.
It's our nature to sort, divide, and classify. We label ourselves to
identify political leanings, religious beliefs, the food we enjoy, and
the sports teams we cheer. The oil industry too has its own distinct
labels which include the "Peak Oil" theorists, those who believe the
world is fast depleting the finite supply of fossil fuel; and the
pragmatists, those who recognize that engineering and technological
advances in oil drilling and extraction continuously identify new
reserves that make oil plentiful.
Oil rose on concern that the clash
between Israel and Hamas will escalate into a wider conflict
that would endanger Middle East crude shipments.
Futures advanced as much as 1.5 percent as Israel extended
its bombing of Gaza and militant groups fired rockets at the
Jewish state. Egyptian Prime Minister Hisham Qandil visited Gaza
today and called for an international effort to end the
violence. Israel’s army said it has deployed tanks near the Gaza
border and called up reservists.
“Going into the weekend, it’s difficult for traders to
ignore the growing tensions in the region,” said Phil Flynn,
senior market analyst at the Price Futures Group in Chicago.
Can Oil Supplies Grow Fast Enough to Keep Prices in Check?
I, along with my editor Sam Avro, recently conducted a broad-ranging interview with John Hofmeister, former President of Shell Oil and currently the head of Citizens for Affordable Energy,
a non-profit group whose aim is to promote sound U.S. energy security
solutions for the nation. In the first part of this interview Mr.
Hofmeister spoke of A Difficult Decade Ahead For Oil Prices and Supplies. In the second, he set forth an Energy Plan for America.
The International Energy Agency expects the United States to become
the world's largest oil producer by around 2020, temporarily overtaking
Saudi Arabia, thanks to increased output from new exploration
The U.S. Energy Department said much the same in a report last month.
The World Energy Outlook 2012
released Monday by the Paris-based IEA also predicts that greater oil
and natural gas production and rising energy efficiency will allow the
U.S., which currently imports around 20% of its energy needs, to become
nearly self-sufficient by around 2035.
Oil advanced on Friday on strong U.S. consumer sentiment and upbeat
readings on the Chinese economy, while gasoline futures surged more than
3 percent on speculation over delivery problems and tight supplies in
storm-hit New York harbor.
The harbor, delivery point for the
NYMEX gasoline contract, was still in flux 11 days after Superstorm
Sandy struck the U.S. Northeast. Many local terminal operations remained
constrained, refineries were shut and the retail supply chain was still
Oil futures rose on Thursday, recovering
some ground after the previous session’s sell off as traders received
encouraging U.S. economic data and positive news from Greece.
Oil for December deliveryCLZ2
+0.66%finished up 65 cents, or 0.8%, to settle at $85.09 a barrel on the New York Mercantile Exchange.
The contract had climbed as high as $85.70 after data showed that U.S.
weekly jobless claims fell by 8,000, while the September trade deficit
narrowed after exports rose more quickly than imports.
A new study estimates the economic impact of the
Eagle Ford Shale on Gonzales and DeWitt counties was more than $3.3
billion in 2011 — and within 10 years that number will skyrocket to more
than $14 billion.
The Center for Community and Business Research at The
University of Texas at San Antonio Institute for Economic Development
(UTSA) performed an economic study of 14 counties in the Eagle Ford
Shale area that portrays a detailed image of the challenges and
opportunities emerging from drilling and production activities in South
The price of oil rose slightly Tuesday, to above $86 a barrel, as investors awaited the results of the U.S. presidential election.
By early afternoon in Europe, benchmark oil for December delivery was up 47 cents to $86.12 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 79 cents to finish at $85.65 a barrel on the Nymex on Monday.
Brent crude, which is used to price international varieties of oil, was up 63 cents to $108.36 on the ICE Futures exchange in London.
Gasoline prices are at all-time highs. As a result, energy policy
concerns echo in boardrooms and family rooms across the U.S. At a recent
House Energy Committee hearing on “The American Energy Initiative,”
Harold Hamm, the top energy adviser of Republican presidential candidate
Mitt Romney, warned that President Obama’s proposed repeal of the
energy tax provisions for oil and natural gas producers (including a
manufacturing tax deduction that all U.S. manufacturers receive) would
decrease drilling activity by 40 percent.
The biggest concern for potential investors in the Bakken Shale oil-producing region of western North Dakota is: "How long will it last?"
A completed Bakken well, which has an average life of 29 years, generates $22 million in net profit over its lifetime, according to the North Dakota Industrial Commission's Oil and Gas Division.
The wells here, which use the hydraulic fracturing or "hydrofracking" technology, cost about $8.5 million on average to drill and complete, with break-even pricing linked to market prices at $55 to $70 per barrel.
A few months ago I wrote an article predicting that the new “OTC
Markets,” formerly known as the Pink Sheets, and it’s OTCQX and OTCQB
quotation tiers were replacing the antiquated, formerly FINRA-run OTCBB.
Current events add further evidence to this view. Recently, more than
1000 Companies which were trading on both the OTCBB and OTCQB were
delisted from the OTCBB and now trade exclusively on the OTCQB tier of
the OTC Markets. These entities are quickly becoming known by their new
moniker, OTCQB Companies.
By 2025 natural gas
production in the Williston basin could increase nearly six-fold over
current levels, pushing North Dakota into a competitive position in the
U.S. natural gas market. That was one of the conclusions drawn by Bentek
Energy in a recently released report commissioned by the North Dakota
Pipeline Authority and North Dakota Industrial Commission.
Based on its high case scenario, the study also found that oil
production could quadruple to 2.8 million barrels per day by 2025.
NEW YORK, Aug 15 (Reuters) - Crude oil production in the
Permian basin -- a carbonate and sandstone prospect in Texas and
New Mexico -- will rise by some 60 percent to reach at least
1.82 million barrels per day by the end of 2016, energy
consultancy Bentek said on Wednesday.
Output will surpass existing pipeline capacity by early next
year, Bentek added, while noting some 1 million bpd of new
takeaway capacity is slated to come online by the end of 2014.
The Permian's oil output has grown consistently since May
2011, some of which is from shale oil prospects, and the basin
will host more oil drillers in the next five years, the
Colorado-based consultancy said.
Oil rose in New York, adding to a
second weekly gain, before a report that may show sales at U.S.
retailers rose last month, providing further signs of economic
improvement in the world’s biggest crude consumer.
Futures climbed as much as 0.6 percent, extending the 1.6
percent gain last week. Retail sales probably increased 0.3
percent in July after a 0.5 percent drop in June, a Bloomberg
survey shows ahead of Commerce Department data tomorrow. That
would be the first rise in four months. The U.S.
The Registration Requirements.
- Ask if the offering is filed with the office of the state securities
commission in your state or the state in which the promoters are
located. If so, contact that agency for any information it may be able
to provide. If the promoter claims that the offering is exempt from
registration requirements in the particular state in which the offers
and sales are made, find out which of the exemptions is claimed and the
terms of the exemption.
- Contact the state securities agency to confirm that the offering is
FRAUDULENT SALES TECHNIQUES
Fraudulent oil and gas deals are frequently structured with the
limited partnership (or other legal entity) in one state, the operation
and physical presence of the field in a second state, and the offerings
made to prospective investors in states other than the initial two
states. Thus there is less chance of an investor dropping by a well site
or a nonexistent company headquarters. Such a structure also makes it
difficult for law enforcement officials and victims to identify and
expose the fraud.
State securities regulators around the country warn that oil and
gas investment scams are alive and well. High oil prices have created a
heightened interest in investments in energy-related business ventures.
Most oil and gas investment opportunities, while involving varying
degrees of risks to the investor, are legitimate in their marketing and
responsible in their operations. However, as in many other investment
opportunities, it is not unusual for unscrupulous promoters to attempt
to take advantage of investors by engaging in fraudulent practices.
But we may have journeyed to the wrong region.
“Our analysis at IHS indicates that Eagle Ford drilling results to
date appear to be superior to those of the Bakken,” said Andrew Byrne,
has delivered impressive growth in the Eagle Ford Shale in the second
quarter. Net production for Q2 2012 averaged 36,300 Boepd. This
represents a 58% sequential increase over Q1 2012 and a 615% increase
over Q2 2011. The company brought 121 wells online in Q2 and 110 had
IP's of over 500 Boepd and 37 had IP's of over 1,000 Boepd. Chesapeake
announced some of its best wells to date in the Eagle Ford including the
Gates 010-CHK-B TR1-D6H in Webb County with an IP rate of 2,070 Boepd
and the Holubar Dim C 2H in Dimmit County with an IP rate of 1,900 Boepd
including a very impressive 1,730 barrels of oil.
(Reuters) - Oil
prices rose for a second straight session on Monday, closing at the
highest level in 11 weeks, as U.S. stock markets rallied to a
three-month high and as traders eyed ongoing turmoil in the Middle East.
The gains extended Friday's
strong rally after supportive U.S. jobs data calmed concerns about a
slowing economy and on hopes that Europe can address its debt crisis.
moved higher and the dollar is a little lower and that may have been
enough to stop the early profit taking after Friday's big jump," said
Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.
Securities and Exchange Commission’s (SEC) position on the payment of
finder’s fees to non-registered broker-dealers has been further
clarified in a request for a No-Action Letter, which was denied by the
SEC. That clarification bodes poorly for those who are looking for a
more expansive interpretation of the finder exemption from broker-dealer registration. Historically, in determining whether a person should be
registered as a broker-dealer, the SEC has primarily considered five
factors in evaluating the conduct of the unregistered participant: (i)
whether the person participates in the negotiations surrounding the
transaction; (ii) whether the person makes recommendations or gives
advice concerning the transaction; (iii) whether the person receives
transaction based compensation in connection with the transaction; (iv)
whether the person has engaged in previous securities transactions; and,
(v) whether the person takes physical possession of the securities or
monies to be transferred between the parties introduced.
Crude oilfuturesrose on Friday, buoyed by better than forecast U.S. jobs data that
improved sentiment about the economic prospects of the world's largest
oil consumer, while worries about supply also provided support. Brent crudegained $1.40 cents to $107.30 per barrel by 9:06 a.m. EDT (1306 GMT).
It was on track for its highest close in two weeks. U.S. oil rose $2.42
cents to $89.55.
A survey of U.S.
employers showed 163,000 jobs were created last month, the most since
February, the Labor Department said on Friday.