Low oil prices hurting some US shale operations; slumping oil prices putting pressure on drillers

Green Car Congress

The number of active rigs drilling for oil and gas fell by their most in two months, according to the latest data from oil services firm Baker Hughes. There were 19 oil rigs that were removed from operation as of Oct. There are now 1,590 active oil rigs, the lowest level in six weeks. We could easily see the oil rig count down 100 by the end of the year, or more.” Some of the more expensive shale regions will not be profitable at current prices.

Increase in US rig count will not cap oil prices

Green Car Congress

The impact of rising oil prices on North American light tight oil (LTO) production is said to be a “Catch 22”, the title of Joseph Heller’s popular 1961 novel set in WWII. Too many analysts continue to believe drilling and service has the same problem with rising oil prices. Those who study crude prices have correctly observed it was the 4 million barrels per day (b/d) increase in US LTO production that contributed greatly to the 2014 oil price collapse.

2016 150
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VW eGolf supply, rising oil prices in 2020, and an electric double-decker bus: Today's Car News

Green Car Reports

Analysts forecast oil prices may double by 2020. And Ontario, Canada, ends a rebate program for electric cars and chargers. The Volkswagen eGolf is in extremely short supply. Los Angeles introduces the first electric double-decker bus. All of this and more on Green Car Reports. The VW eGolf may be in short supply while the automaker gears up for

2018 73

IHS Markit: US oil producers to halt 1.75 MMb/d per day of production; Canada to cut 0.5 MMb/d

Green Car Congress

Due to the collapse in oil prices, IHS Markit expects US producers are in the process of curtailing about 1.75 million barrels per day (MMb/d) of existing production by early June due to operating cash losses, lack of demand and storage capacity, and an unwillingness to sell resources at the very low prices available since the onset of the COVID-19 crisis. Canada, hit by its own economic and storage issues, is set to cut an additional 500,000 b/d from its production.

2020 170

Government of Alberta takes steps to encourage investment in new conventional oil wells

Green Car Congress

The Government of Alberta, Canada, is now allowing curtailed operators to drill new conventional oil wells without being restricted by production limits. Oil production in Alberta in September 2019 was 16.75 Non-conventional (or oil sands) production, which constituted 83.8% of all oil production in Alberta in September 2019, increased by 3.9% year-over-year, while production of conventional oil was down 6.2% Canada Market Background Oil

2019 150

Opinion: Busting The “Canadian Bakken” Myth

Green Car Congress

The financial pages of Canadian newspapers have been full of headlines lately announcing the potential of two large shale oil fields in the Northwest Territories said to contain enough oil to rival the Bakken Formation of North Dakota and Montana. The report by Canada’s National Energy Board (NEB) evaluated, for the first time, the volume of oil in place for the Canol and Bluefish shale formations, located in the territory’s Mackenzie Plain. Canada Oil Opinion

2015 184

IHS-CERA concludes “no material impact” on US GHG from Keystone XL; heavy crude from Venezuela most likely replacement

Green Car Congress

The study also found that any absence of oil sands on the US Gulf Coast would most likely be replaced by imports of heavy crude oil from Venezuela, which has the same carbon footprint as oilsands crude. The IHS CERA report notes that pipeline opponents argue that by opening up additional US markets for Canadian oil sands, the Keystone XL project would lead to significant incremental US GHG emissions. Future price volatility is to be expected.

State Department issues Draft Supplemental Environmental Impact Statement on Keystone XL Pipeline: climate change impacts

Green Car Congress

The US Department of State (DOS) has released its Draft Supplemental Environmental Impact Statement (SEIS) in response to TransCanada’s May 2012 application for the Keystone XL pipeline that would run from Canada’s oils sands in Alberta to Nebraska. The pipeline would primarily transport crude oil from the WCSB and Bakken regions. The majority of the WCSB oil is considered a heavy crude oil, while Bakken crude is considered a light crude oil.

EIA projects world liquid fuels use to rise 38% by 2040, driven by growth in Asia and Middle East; transportation 92% of demand

Green Car Congress

Liquid fuels production (OPEC crude and lease condensate, non-OPEC crude and lease condensate, and other) and consumption (by OECD and non-OECD regions) under three price cases in 2040. Crude and lease condensate includes tight oil, shale oil, extra-heavy crude oil, field condensate, and bitumen (i.e., oil sands, either diluted or upgraded). oil shale), and refinery gain. per year, as the mature economies react to sustained high fuel prices.

2014 275

2019 NTEA Fleet Purchasing Outlook reveals continued strong demand for biodiesel in diesel trucks

Green Car Congress

Insights from NTEA’s Fleet Purchasing Outlook , provided by fleet professionals across the United States and Canada, give the entire work truck industry perspective on anticipated purchasing intent and areas of greatest interest to fleet managers. NTEA’s additional anecdotal evidence suggests that though alternative fuel interest may ebb and flow along with fluctuating oil prices, the trend will likely turn upward in the long run.

2019 186

Supply Crunch Or Oil Glut: Investment Banks Can’t Agree

Green Car Congress

shale has thrown in another unknown in the mix of factors driving the price of oil. This year, shale output forecasts combine with OPEC’s production cuts, geopolitical factors, and unexpected outages to further complicate supply/demand and oil price forecasts by Wall Street’s major investment banks. But analyst projections about oil global supply and demand are increasingly diverging, because expectations of the combined effects of OPEC’s cuts, U.S.

2017 150

Perspective: Government Leadership Needed for Electric Vehicles to Succeed

Green Car Congress

Perspective by Chris Hill, Manager, Central Fleet for the City of Hamilton, Ontario, Canada, and author of Hamilton’s Green Fleet Implementation Plan. [Mr. Hill is currently chair of the Ontario Chapter of NAFA Fleet Management Association, and a Green Party candidate for Canada’s Parliament in the next general election. In energy, a momentary signal on the price of oil doesn’t necessarily create the genesis for a 40-year investment.

2010 170

CAR: US light-duty vehicle sales to dip in 2019

Green Car Congress

CAR said that a number of positive factors support a high level of US light vehicle sales, including: Projected moderate US economic output growth in 2019; Historically low US unemployment rates; Relatively low oil prices continue through 2020; Underlying nominal wage growth continues; High levels of consumer confidence were reached in Q4 2018; and. Solid new housing starts and home prices rebounding to pre-recession levels.

2019 161

Researchers Suggest That Although CCS and Other Technologies Could Reduce Oil Sands GHG Emissions to Near Zero, That Strategy May Not Make Sense

Green Car Congress

Examples of emerging oil sands related technologies and trade-offs. The paper is an examination of how various choices about the scale of the life cycle analysis applied to oil sands (i.e., Debate about the future of oil sands development is so contentious that even the name of the resource is disputed: proponents typically use oil sands while opponents use tar sands. Why then the focus on oil sands?

2010 196

TransCanada terminates Energy East Pipeline and Eastern Mainline projects

Green Car Congress

TransCanada Corporation is halting the application process for its proposed Energy East Pipeline and Eastern Mainline projects in Canada. million barrels of crude oil per day from Alberta and Saskatchewan to the refineries of Eastern Canada and a marine terminal in New Brunswick. Transcanada began the application process in 2013, when oil prices were substantially higher.

2017 150

Shell to halt 80K bpd Carmon Creek oil sands project

Green Car Congress

Royal Dutch Shell plc will not continue construction of the 80,000 barrel per day Carmon Creek thermal in situ oil sands project located in Alberta, Canada. This decision reflects current uncertainties, including the lack of infrastructure to move Canadian crude oil to global commodity markets.

Lux: nearly $7B in private investment in emerging oil & gas E&P technologies over last decade

Green Car Congress

Investment into emerging oil and gas E&P (exploration and production) technologies, which were nearly non-existent in 2003, at just $57 million, have attracted nearly $7 billion in private investment from 497 unique transactions, according to a new report from Lux Research, “ Investing in Next Generation Oil and Gas Technologies ”.

2014 185

Purdue study projects that under likely adoption rates, use of biojet fuel alone will not meet aviation emissions reduction targets for 2050; the need to go above 50% blends

Green Car Congress

Uncertainty range of the aviation GHG emissions under the High Oil price scenario (the most optimistic for biojet adoption), given in a box plot depicting the minimum, quartile, and maximum values. In a paper published in the ACS journal Environmental Science & Technology , they report finding that in 2050, under a high oil price scenario assumption, GHG emissions can be reduced to a level ranging from 55 to 92%, with a median value of 74%, compared to the 2005 baseline level.

2011 196

Eni report: global oil reserves and oil production up in 2018 due to US

Green Car Congress

Eni has released the 18 th edition of the World Oil, Gas and Renewables Review , the annual statistics report on oil, natural gas and renewables sources. The first volume of the report, the World Oil Review, is devoted to oil reserves, supply, demand, trade and prices with a special focus on crude oil quality and on refining industry. In 2018, global oil reserves rose slightly (+0.4%), mainly due to growth in the US. Market Background Oil

2019 161

Global biofuels production up 17% in 2010 to hit all-time high of 105 billion liters

Green Car Congress

High oil prices, a global economic rebound, and new laws and mandates in Argentina, Brazil, Canada, China, and the United States, among other countries, are all factors behind the surge in production, according to research conducted by the Worldwatch Institute’s Climate and Energy Program for the website Vital Signs Online. Asia produced 12% of the world’s biodiesel in 2010, a 20%t increase from 2009, mostly using palm oil feedstock in Indonesia and Thailand.

2011 219

Norweign Drivers switch to Electric Cars

EV Report

Most people do know and feel that if we drive electric cars we could reduce the consumption of oil and could reduce pollution. But recently due to outbreak of COVID-19, sales of electric vehicles have been affected with the consumer markets being shaken and oil prices being plunged to high.

2020 52

EIA projects world energy use to increase 53% by 2035; oil sands/bitumen and biofuels account for 70% of the increase in unconventional liquid fuels

Green Car Congress

World oil prices remain high in the IEO2011 Reference case, but oil consumption continues to grow; both conventional and unconventional liquid supplies are used to meet rising demand. In the IEO2011 Reference case the price of light sweet crude oil (in real 2009 dollars) remains high, reaching $125 per barrel in 2035. Oil sands/bitumen and biofuels account for 70% of the increase in unconventional liquid fuels. Forecasts Fuels Oil Oil sands

Harvard Kennedy School researcher forecasts sharp increase in world oil production capacity and risk of price collapse

Green Car Congress

World oil production capacity to 2020 (crude oil and NGLs, excluding biofuels). Oil production capacity is surging in the United States and several other countries at such a fast pace that global oil output capacity could grow by nearly 20% from the current 93 million barrels per day to 110.6 Such an increase in capacity could prompt a plunge or even a collapse in oil prices, he suggests. shale oil production. Oil: The Next Revolution."

2012 221

Opinion: Can Argentina Capitalize On Its Vast Shale Reserves?

Green Car Congress

The question today is just how much Argentina is willing to change and how this plays into a low oil price environment that is already negatively impacting investment elsewhere. Experts have kept a watchful eye on Argentina ever since the US Energy Information Administration identified the nation as holding the world’s second largest shale gas and fourth largest shale oil reserves. Chevron was the first oil major to take the plunge with a deal worth a potential $15 billion.

IHS Markit: global commercial vehicle production to drop 22% in 2020 in wake of COVID-19

Green Car Congress

This reflects anticipated shifts within the US truck-buying industries primarily, but Canada and Mexico are likewise seen with significant declines in 2020 demand. Meanwhile, in Russia, the combined negative impact of historically low crude oil prices and pandemic-induced lockdowns will undermine the country’s already weak growth, which will disrupt truck demand.

2020 175

Arctic oil on life support

Green Car Congress

Oil companies have eyed the Arctic for years. With an estimated 90 billion barrels of oil lying north of the Arctic Circle, the circumpolar north is arguably the last corner of the globe that is still almost entirely unexplored. As drilling technology advances, conventional oil reserves become harder to find, and climate change contributes to melting sea ice, the Arctic has moved up on the list of priorities in oil company board rooms. Arctic Oil

2015 191

CFR Report Says Energy Security and Climate Change Concerns With Oil Sands Can be Reconciled

Green Car Congress

Oil sands supply chain. A new report from the Council on Foreign Relations (CFR)— The Canadian Oil Sands: Energy Security vs Climate Change — claims that prudent greenhouse gas regulations can limit emissions from Canadian oil sands while still enabling robust development of the energy resource. The report argues that oil sands production delivers both energy security benefits and climate change damages, but warns that both are often overstated. “

SDTC awards Nsolv $13M to commercialize warm solvent technology for heavy oil extraction; 80% reduction in GHG emissions

Green Car Congress

Sustainable Development Technology Canada (SDTC) is awarding Nsolv $13 million in grant funding to commercialize its field-tested, proprietary warm solvent technology for in situ heavy oil extraction without the use of steam. Among its benefits, the technology reduces greenhouse gas (GHG) emissions by lowering the amount of energy needed to remove heavy oil from the ground. The oil is sent to refineries for further processing. Emissions Oil sands

2016 163

CAPP forecasts oil sands development still drives steady Canadian oil production growth to 2030

Green Car Congress

Canadian oil production will grow steadily by an annual average of 4% (175,000 barrels per day, mostly from the oil sands) over the period to 2030 as companies continue to develop the oil sands in response to strong demand indications from North American and global energy markets, according to the latest forecast from the Canadian Association of Petroleum Producers (CAPP). million barrels per day, with oil sands production contributing 5.2

EIA: Changes in refining economics in 2011 contributed to real contrasts in US refinery utilization

Green Car Congress

The divergence of West Texas Intermediate (WTI) and Brent crude oil prices in 2011 affected refinery utilization in the United States, particularly in the East Coast (PADD 1) and Midwest (PADD 2) regions, according to a report from the US Energy Information Administration (EIA). East Coast refining typically relies on imports of crude oil based on the Brent crude price, which, on average, increased to a $16-per-barrel premium over WTI spot prices in 2011.

2012 179

IHS Automotive forecasts 88.6M unit global light vehicle market in 2015; 2.4% growth

Green Car Congress

The campaign is expected to have a long-lasting effect on premium parts/vehicle prices in China. Coupled with this, the momentum could lead to downward adjustment in premium pricing, which helps provide solid foundation for premium vehicle penetration to further increase in China in the next decade. In India, falling inflation, lower interest rates, energy prices and a regained confidence will help lift the car market into growth mode starting in 2015 after a two-year lull.

2015 199

Opinion: Is Russia Plotting To Bring Down OPEC?

Green Car Congress

Putin has highlighted on various occasions the contribution Russia’s mineral wealth, in particular oil and natural gas, must make for Russia to be able to sustain economic growth, promote industrial development, catch up with the developed economies, and modernize Russia’s military and military industry. While oil and natural gas are crucial to Russia, Russia’s crude and natural gas are crucial to its neighbors on the Eurasian landmass. Market Background Oil Opinion Russia

Russia 195

IHS Markit identifies 5 billion barrels of oil equivalent in short-cycle opportunities outside North America

Green Car Congress

New energy research from business information provider IHS Markit has identified more than five billion barrels of oil equivalent (BOE) in numerous smaller, previously bypassed, or underperforming reservoirs outside North America that offer oil and gas operators a shorter-cycle path to production than new, frontier projects in undeveloped areas. billion BOE) was made in an underexplored area of the Sureste Basin, with first oil targeted for 2019, just two years after discovery.

2018 150

Deutsche Bank Forecast sees slower transportation electrification and greater gasoline demand near-term; increased confidence in the pace and breadth of long-term shift to efficient transportation systems

Green Car Congress

In a December 2010 research note on the 2011 outlook for the oil market, Deutsche Bank (DB) analysts have revised their earlier expectations of the pace of near-term transportation electrification trends (slower) and gasoline demand (greater) but note that the developments in the global transportation sector in 2010 have increased their confidence “ in the pace and breadth of the long-term shift to a more efficient transportation system.” Aggressive near-term OEM lease pricing.

2011 215

Opinion: Saudis Could Face An Open Revolt At Next OPEC Meeting

Green Car Congress

OPEC next gathers December 4 in Vienna, just over a year since Saudi Oil Minister Ali Al-Naimi announced at the previous OPEC winter meeting the Saudi decision to let the oil market determine oil prices rather than to continue Saudi Arabia's role of guarantor of $100+/bbl oil. In fact, Saudis have downplayed the impact of lower prices on their country, asserting that the kingdom has the financial wherewithal to withstand lower oil prices.

2015 192

Syncrude to Expand Its Oil Sands Synthetic Crude Output to 425,000 Barrels per Day by 2020

Green Car Congress

Canadian Oil Sands Trust, the largest stakeholder (36.74%) in the Syncrude oil sands project, announced plans to increase the synthetic crude oil production capacity at Syncrude Mildred Lake upgrader to 425,000 barrels per day by 2020 from 350,000 now. Decisions regarding further upgrading capacity will be considered in the future in the context of evolving heavy/light crude oil price spreads. Marcel Coutu, Canadian Oil Sands’ President and CEO.

Fossil Fuel Production Up in 2008 Despite Recession

Green Car Congress

World production of fossil fuels—oil, coal, and natural gas—increased 2.9% million tons of oil equivalent (Mtoe) per day, according to a Worldwatch Institute analysis. Energy prices reflected this shift: oil peaked at $144 per barrel in July, then fell to $34 per barrel in December. In 2000, coal provided 28% of the world’s fossil fuel energy production, compared with 45% for oil. Oil production reached 10.7

2008 150

IEA World Energy Outlook view on the transport sector to 2035; passenger car fleet doubling to almost 1.7B units, driving oil demand up to 99 mb/d; reconfirming the end of cheap oil

Green Car Congress

Change in primary oil demand by sector and region in the central New Policies Scenario, 2010-2035. Under the WEO 2011 central scenario, oil demand rises from 87 million barrels per day (mb/d) in 2010 to 99 mb/d in 2035, with all the net growth coming from the transport sector in emerging economies. Alternative technologies, such as hybrid and electric vehicles that use oil more efficiently or not at all, continue to advance but they take time to penetrate markets.

2011 213

EIA: light duty vehicle energy consumption to drop 25% by 2040; increased oil production, vehicle efficiency reduce US oil and liquid imports

Green Car Congress

The differences from AEO2013 to AEO2014 result from different fuel prices, updated manufacturer product offerings, changing technology attributes, and an updated view of consumer perceptions of infrastructure availability for E85 vehicles. Natural gas prices significantly increase the demand for LNG and compressed natural gas in AEO2014 , from an insignificant share in 2012 to 8% of HDV energy consumption in 2040. Pipeline exports to Canada grow by 1.2%

2013 241

Refiners and Truckers Associations Challenge California LCFS in Federal Court

Green Car Congress

NPRA was joined in the suit by the American Trucking Associations (ATA); the Center for North American Energy Security, an organization dedicated to the development of oil sands, oil shale and other unconventional resources in North America; and the Consumer Energy Alliance, an organization advocating, among other things, more access to offshore and onshore oil & natural gas.

2010 179

RAND reports suggest US DoD use less petroleum fuel to deal with high prices, not count on alternatives

Green Car Congress

According to three new reports on “Promoting International Energy Security” issued by the RAND Corporation, because the energy purchases made by the US Department of Defense are not large enough to influence world oil prices—despite DoD requiring considerable amounts of fuel to function—cutting fuel use is the only effective choice to reduce what the Pentagon spends on petroleum fuels. Peak oil. Could oil production peak before 2030?

2012 196

Chevron leveraging information technology to optimize thermal production of heavy oil with increased recovery and reduced costs

Green Car Congress

Chevron’s focus on optimizing the thermal management of the Kern River field has resulted in a steady drop in the steam:oil ratio (barrels steam water per barrel oil), resulting in improved economics of the field even with slowly declining production. Chevron, already the largest thermal heavy oil producer, is optimizing thermal production in heavy oil fields by leveraging information technology to improve the percentage recovery as well as the economics.

2011 210

National Low Carbon Fuel Standard study releases major Technical Analysis and Policy Design reports; providing a scientific basis for policy decisions

Green Car Congress

Very broadly, they found that an LCFS would buffer the economy against global oil price spikes, trim demand for petroleum, and lessen upward pressure on gas prices. California’s original approach to heavy carbon oils resulted in a legal challenge that is still pending; the EU’s adoption of a similar approach has resulted in protracted discussion and negotiation with Canada that has yet to be resolved, either.).

2012 213