Oil & Gas Catch-Up

Oil Rises as European Leaders Prep for Debt Talks at Bloomberg.

The last headline I expected to see upon returning from holidayU.S., U.K. to Call for Strategic Petroleum Reserve Release?  Iacono ResearchDennis Gartman: Tapping SPR Could Drive Oil to New Highs on CNBC.

IEA sees oil market as ‘sufficiently supplied’ in the Oil & Gas Journal.  “US oil demand in July contracted by 2.7% from a year earlier…” also in the OGJ.

Brent and WTI Crude Oil Prices on the Rise at Bespoke.  “Crude oil inventories dropped for the third week in a row last week…” Bespoke.

North Dakota crude oil production continues to rise at the EIA.

Oil sands producers could feel squeeze in crowded market at Financial Post.

The rig count was down last week:  Haynesville Play.

Crude Oil and NGL Surpluses at RBN Energy.

Exxon, Qatar Petroleum JV looks to export U.S. natural gas at Reuters.

“…we would expect natural gas prices will still need to remain range bound between $2.50 and $3.25/Mcf to balance the gas equation through November.”  Raymond James.  You can be sure these thoughts on fuel switching we be a part of my afternoon coal post.

Expensive Oil

Oil Declines in New York Amid Signs of Higher U.S. Supply at Bloomberg.

June oil production in North Dakota was higher by 20k b/d over May and 71% higher year over year (June 2011 was weather depressed) (Mark Perry).  When the revised Texas numbers come out we’ll see an bigger party down there:  Mark Perry.

Mixed results in the Utica and not much oil:  Ohio.

Offshore oil rigs drilling deeper than ever at Globe and Mail.  Yes, new oil production to offset natural declines is very expensive.

China’s oil demand ebbs and flows.  Right now it’s soft.  Reuters.

Animation on the basics of horizontal drilling and fracking:  Business Insider.

This afternoon’s coal post will have the natural gas commentary.  Tomorrow morning I leave for a much needed few days off.  Feel free to search Independent Stock Analysis using the search button in the upper right corner.  Signing up by email or FeedBurner are options too.

Oil & Gas

Oil Drops From Two-Month High in New York as U.S. Demand Eases at Bloomberg.

I do not know the source, but “Active rigs in North Dakota: 198. Down from the boom’s high of 218.” at Million Dollar Way.

Despite the US shale boom, why is world wide oil supply not going to go any higher?

  • “(Petrobras) said major increases in output were unlikely before 2015 despite $237 billion in planned spending. The 2012-2016 plan is the world’s largest corporate investment program.”  Reuters
  • “Crude production from sanctions-hit Iran will fall by about 1 million b/d in 2012 to 2.6 million b/d by the end of the year” at Platts.

“Crude-oil futures bounced up over $1 at one point Monday after a false Twitter rumor exposed the oil market’s knee-jerk fear of Mideast turmoil.”  WSJ

Easy to understand accounting speak:  Oil Companies Provide Different Shale Accounts at the WSJ.

Exxon Mobil Set to Become a $500 Billion Company by Dragonfly.  Pretty cool oil and gas Gulf of Mexico picture graph:  EIA.

The illustrated guide to America’s natural gas:  Visual Capitalist.

Aubrey receives constant criticism over leading the land grab, yet he clearly understood the need to secure the best assets as Race for B.C.’s natural gas assets heats up at the Financial Post.

One big energy bull:  “If you are bullish on natural gas, buy US coal companies.”  See my latest here.

Shale Unbelief

Oil Near Two-Week High on U.S. Supplies; Brent Rises Above $110 at Bloomberg.

“But Helms emphasized that oil production in the Bakken is consistently increasing by 15,000 to 20,000 b/d every month, and that thousands of additional wells will be drilled there in the coming years.”  Platts

Raymond James Energy Stat of the Week:  “this oversupply simply shifting from the Mid-Continent to the Gulf Coast.”  Raymond James

“Eagle Ford crude production is close to 600 Mb/d as of July 2012…Takeaway projects being developed today to go online by 2013 have capacity for 1,650 Mb/d…”  These numbers will receive push-back, of course, as they are not months old and government issued.  RBN Energy

The media has been having a field day with Ohio Gov. John Kasich’s claim that a single energy company could recover $1 trillion worth of oil and gas from the state’s shale.  Interestingly, the only ‘expert’ to disagree is Arthur Berman, who last I knew was in denial the natural gas market continues to be oversupplied by 10% or so.  Oops.    Washington Post and Huffington Post.  Shhh..don’t tell them the Marcellus is a monster:  John Hanger.  Or that the natural gas oversupply continues while the Haynesville rig count has collapsed:  Haynesville Play.

An extensive piece on global gas dynamics for the next decade at Forbes.

Chesapeake reported second quarter results.  Three things stand out: 1) CHK’s asset base is monstrous. 2)  They are pretty good at drilling NG wells and 3)  CHK still needs to crack the horizontal shale oil code.  CHK