CANADA'S OIL WILL UP
According to REUTERS, Canada's oil sands production will grow by 42 percent to 3.4 million barrels per day by 2025, most of which will come from the expansion of existing facilities rather than new projects, analysts at IHS Energy said on Monday.
The million-barrel-per-day increase in output over the next nine years is less than what IHS would have estimated before the collapse in global oil prices, spokesman Jeff Marn said.
Low crude prices have forced producers such as Cenovus Energy and Royal Dutch Shell to slam the brakes on sanctioning new oil sands plants, while all projects currently under development will be completed by 2018, HIS said.
Future growth will have to come from so-called "brownfield" expansions where costs have come down as a result of lower construction activity, improved operating efficiencies and cheaper natural gas.
"We expect oil sands producers to focus future investments in the coming years onto their most economic projects - which we expect to be expansions of existing facilities," said Kevin Birn, director for IHS Energy.
"Expansions of existing facilities are better understood, quicker to first oil and lower cost to construct," he added.
HIS estimates that since 2014, the cost of building and operating a new oil sands plant has fallen by $10 a barrel, and the least expensive project - expanding an existing thermal oil sands operation - could break even at a U.S. crude price of around $50 a barrel.
U.S. crude was last trading at $46.09 a barrel, after topping $50 a barrel earlier this month for the first time in nearly a year.
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Libya’s oil production increased steeply to the current level of 850,000 b/d from a low point in August 2016 of below 300,000 b/d. Production surpassed 1 million b/d in July.
- Revenue of $7.9 billion increased 6% sequentially - Pretax operating income of $1.1 billion increased 11% sequentially - GAAP EPS, including Cameron integration-related charges of $0.03 per share, was $0.39 - EPS, excluding Cameron integration-related charges, was $0.42 - Cash flow from operations was $1.9 billion; free cash flow was $1.1 billion
“The combination of GE Oil & Gas and Baker Hughes closed on July 3, and we are pleased with our progress during our first operating quarter. Despite the continuing challenging environment, we delivered solid orders growth and secured important wins from customers, advanced existing projects and enhanced our technology offerings in the quarter. We also achieved key integration milestones and made significant progress working as a combined company. I am now more convinced than ever that we combined the right companies at the right time,” said Lorenzo Simonelli, BHGE chairman and chief executive officer.
U.S. Rig Count is up 360 rigs from last year's count of 553, with oil rigs up 293, gas rigs up 69, and miscellaneous rigs down 2 to 2. Canada Rig Count is up 59 rigs from last year's count of 143, with oil rigs up 38 and gas rigs up 21.