Government said on Thursday it hoped to unlock gas and oil resources worth almost $40 billion by simplifying licensing rules and offering price incentives to recover gas from difficult offshore fields.
U.S. monthly crude oil production in December 2015 continued to decline, as oil production reached its lowest level since November 2014. Production also declined from year-ago levels for the first time in more than four years. This continued production decline is the result of lower crude prices, which have declined more than 70% since the summer of 2014.
Production drilling has commenced on the first of a total of 35 wells to be drilled during Phase 1 of the Johan Sverdrup field development offshore Norway in the North Sea, operator Statoil ASA reported.
Light, sweet crude oil prices on the New York market gained modestly to settle above $34/bbl on Mar. 1, and Russia state news agency TASS reported Russia’s Energy Minister Alexander Novak said a “critical mass” of oil-producing countries had agreed to freeze oil production.
Citing his support for development of a competitive natural gas market in Europe, Norway's minister of petroleum and energy, Tord Lien, said a well functioning market in Europe is crucial for the maximisation of Norwegian assets. “Gas is there if Europe needs it.”
Despite lower crude oil prices, EIA expects Canadian oil production to continue increasing through 2017. Canadian oil sands projects that were already under construction when prices began to fall in 2014 and that are expected to begin production in the next two years are the main driver of production growth.
U.S. Rig Count is down 12 rigs from last week to 502, with oil rigs down 13 to 400, and gas rigs up 1 to 102. Canadian Rig Count is down 31 rigs from last week to 175, with oil rigs down 26 to 83, and gas rigs down 5 to 92.
Halliburton Co., which provides well-drilling services for oil companies, is cutting 5,000 more jobs as the industry continues to struggle with slumping oil prices.
“We’ve worked out a common position,” Novak said, commenting on the deal. “We discussed various options, including doing nothing and cutting production.” An oil price at $50 a barrel is acceptable for exporters and consumers over the long term, he said. Brent crude, a global benchmark, traded at about $33 on Friday after dropping 45 percent over the past year.
On Tuesday, Saudi Arabia, Russia, Venezuela and Qatar conditionally agreed to cap their output at last month’s levels in order to halt a slide that has pushed oil prices to their lowest point in more than a decade. Oil prices recently plummeted below $30 a barrel, the lowest in 13 years.
Rosneft's hydrocarbon reserve replacement ratio under the SEC classification amounted to 124%. Following 2015 Rosneft's hydrocarbon reserve life under the SEC classification totaled 19 years.
U.S. Rig Count is down 27 rigs from last week to 514, with oil rigs down 26 to 413, and gas rigs down 1 to 101. Canadian Rig Count is down 16 rigs from last week to 206, with oil rigs down 9 to 109, and gas rigs down 7 to 97.
Feb. 3, 2016-- National Oilwell Varco, Inc. (NYSE:NOV) today reported fourth quarter 2015 net income of $85 million, or $0.23 per fully diluted share, excluding other items, down from $0.61 in the third quarter of 2015 on a comparable basis. Other items included pre-tax charges of $1,634 million for goodwill and other intangible asset write-downs, $139 million for restructuring and other charges (which included inventory write-downs, severance and facility closure costs, and other costs), and $7 million in FX losses due to a currency devaluation in Argentina. GAAP net loss for the quarter was $1,523 million, or $4.06 per fully diluted share.
Medvedev also downplayed an expected influx of liquefied natural gas to Europe from the United States, saying Gazprom's gas would be cheaper.
U.S. Rig Count is down 18 rigs from last week to 619, with oil rigs down 12 to 498, and gas rigs down 6 to 121.