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Oil companies took out a greater number U.S. drilling permits in September, boosting permitting levels 66 percent higher than this time last year, as oil prices hover near $50 a barrel. The number of U.S. land permits issued last month totaled more than 4,700, compared to 3,300 the previous month, with the biggest surges coming in California, Pennsylvania and Wyoming, according to data compiled by investment bank Evercore ISI. It marked the first time since January 2015 that the four-week trailing average of drilling permits rose above 2014 levels. Evercore said it expects drillers to pull back on fourth-quarter spending, but the flurry of permits could mean the rig count could, at the very least, stabilize. "A sharp rig count inflection could be in the cards," Evercore analyst James West wrote in a note to clients.

OPEC’s Secretary General Mohammed Barkindo on Tuesday called on U.S. shale oil producers to help curtail global oil supply, warning extraordinary measures might be needed next year to sustain the rebalanced market in the medium to long term. “We urge our friends, in the shale basins of North America to take this shared responsibility with all seriousness it deserves, as one of the key lessons learnt from the current unique supply-driven cycle,” said Barkindo. The comments by the Organization of the Petroleum Exporting Countries official came during a speech delivered at the India Energy Forum organized by CERAWeek in New Delhi. “At the moment we (OPEC and independent U.S. producers) both agreed that we have a shared responsibility in maintaining stability because they are also not insulated from the impact of this downturn,” Barkindo said, referring to a slide in ...

The U.S. oil rig count fell for a fourth time in the last five weeks as a 14-month drilling recovery stalled as energy firms reduced spending plans in response to recent crude price declines. The oil rig count fell by two to 748 in the week to Oct. 6, General Electric Co's. Baker Hughes energy services firm said in its closely followed report on Friday. RIG-OL-USA-BHI. The rig count, an early indicator of future output, is much higher than a year ago when only 428 rigs were active after energy companies boosted spending plans earlier in the year in anticipation of higher crude prices in coming months. U.S. crude futures have averaged more than $49 a barrel so far in 2017, easily topping last year's $43.47 average. Looking ahead, futures were trading around $49 for the balance of the year ...

Rising production costs, high acreage prices and a shareholder push for financial discipline have dramatically slowed the land rush in the Permian Basin, one of the world's most active oil fields. Drillers spent $35 billion in West Texas over a nine-month period that ended in early spring. By comparison, the collective value of land deals of the last six months is less than $5 billion, energy research firm Wood Mackenzie reports. Shortly after OPEC announced plans to curb global crude supplies, oil prices rose and drillers made a flurry of acquisitions in the Permian, willing to pay high prices to lease land that sits atop multiple stacked layers of oil-soaked rock that could ultimately yield another 70 billion barrels of crude in coming decades. But that multibillion-dollar push, prodded along by outside investors, couldn't last forever. "The market was throwing ...

When drilling a hole in the ground, most oil companies like to measure the rock being drilled through before locking the rock behind steel casing and cement for the rest of the well's life. The same three methods that were developed decades ago are still in common use today for measuring rock during the drilling process: Logging-while-drilling Openhole/wireline Logging Surface Data Logging (commonly called Mud Logging) In 2006 the industry spent over $5B on formation evaluation. This number soared to $9B by 2012, before settling at under $6B today in 2017. With such massive changes in industry spend over the past decade, we might ask, has the mix of formation evaluation types used changed over time? Consider the following graph of formation evaluation techniques: Formation Evaluation SAI_chart-29.png This not-very-exciting graph actually reveals two very compelling trends: The struggle of LWD ...

U.S. energy companies added oil rigs for the first week in seven after a 14-month drilling recovery stalled in August as crude prices were on track for their strongest third quarter in 10 years. The U.S. oil rig count, however, is down for the second month in a row and posted its biggest monthly and quarterly declines since the second quarter of 2016. Drillers added six oil rigs in the week to Sept. 29, bringing the total count up to 750, General Electric Co’s Baker Hughes energy services firm said in its closely followed report on Friday. The rig count, an early indicator of future output, is still higher than the 425 active oil rigs a year ago as energy companies pursued ambitious spending programs for 2017. For the month of September, the rig count fell by nine, after dropping ...

US crude exports reached 1.5mn b/d last week, breaking the previous record of 1.3mn b/d set earlier this year in the week ending 26 May, as a glut of light crude in the Gulf coast following Hurricane Harvey improved export economics. Most of the exports have been heading to Asia, with charterers including South Korea's SK Energy, Japan's Cosmo and China's Unipec, and traders such as Trafigura, Vitol and Mercuria, according to shipbrokers. Suezmaxes, which carry 1mn bl cargoes, have emerged as the dominant vessel type along this long-haul route. This is partially because of they are mid-size which offers discharge flexibility and because VLCC availability in the Gulf of Mexico has been limited. Some US crude is also moving to Europe and toward the Caribbean, although typically on smaller vessels such as Aframaxes. An important driver for the elevated ...

The Permian Basin of Texas and New Mexico holds 60 billion to 70 billion barrels of yet-to-be pumped crude oil, according to a study by IHS Markit Ltd. The Permian region’s so-called recoverable resources would be enough to supply every refinery in the U.S. for 12 years and have a market value of about $3.3 trillion at current prices for West Texas Intermediate oil, the domestic benchmark. IHS spent three years studying output data from more than 440,000 wells to calculate the amount of crude remaining within the sprawling, mile-thick rock formation that pumps more oil than any other U.S. field, the London-based researcher said in a statement on Monday. The estimate may grow as IHS geologists and data scientists extend their analytical techniques to deeper geological zones. “The Permian Basin is America’s super basin in terms of its oil ...

US crude oil rig count On September 22, 2017, Baker Hughes (BHI) released its weekly US crude oil rig count report. Baker Hughes reported that the US crude oil rig count fell by five to 744 on September 15–22, 2017. Rigs fell for the third straight week. US crude oil rig counts have fallen by 22 rigs or 3% in the last three months. They also near a four-month low. Rigs have slowed down due to lower crude oil (USO) (UCO) (DWT) prices in the past few months. The above chart shows the relationship between US crude oil rigs and crude oil prices. US crude oil prices are at a four-month high. Higher crude oil prices have a positive impact on drilling activity. They benefit oil producers (IEZ) (XES) (XLE) and drillers like Atwood Oceanics (ATW), Baker Hughes (BHI), and ...