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Author: <span>Shiloh</span>

Texas Drilling Permits and Completions Statistics for June 2019

June 10, 2019

AUSTIN –– The Railroad Commission of Texas (Commission) issued a total of 1,001 original drilling permits in June 2019 compared 1,230 in June 2018. The June 2019 total included 905 permits to drill new oil or gas wells, 10 to re-enter plugged well bores and 86 for re-completions of existing well bores. The breakdown of well types for those permits is 240 oil, 69 gas, 613 oil or gas, 74 injection, zero service and five other permits.

In June 2019, Commission staff processed 632 oil, 182 gas, 61 injection and two other completions compared to 914 oil, 158 gas, 48 injection and four other completions in June 2018. Total well completions processed for 2019 year to date are 5,050; down from 5,574 recorded during the same time period in 2018. …
 

RRC Drilling Permits Through July 3rd

July 7, 2019

Permit applications approved by the Railroad Commission of Texas for June 27 through July 3 for Districts 7C, 8 and 8A.

The numbers in parentheses indicate the number of permits approved for that leasehold —

Advance Energy Partners, LLC, AEP 226-34 Unit, Ward, new drill.

Anadarko E&P Onshore, LLC, Silvertip 76-10 Unit H, Loving, new drill (4).

Apache Corporation, Mohican Unit, Reeves, new drill (2).

Aqua Terra Permian, LLC, Augustus SWD, Midland, new drill….
 

OPEC agrees to continue oil production quotas

July 5, 2019

By Alex Mills

World oil markets have flipped upside down with the main exporters of oil making concessions to the new kid on the bloc: independent producers of oil from shale in the United States.

Evidence of this dramatic turnaround appeared in December 2016 when the 14 members of the Organization of Petroleum Exporting Countries decided they must cut their production to offset an oversupply of oil on the international Brent market causing prices to decline from near $100 per barrel in 2014 to $40.

Saudi Arabia, the world’s largest exporter at the time, even went to Russia, which produced as much oil as the Saudis, and negotiated an agreement that Russia would participate in reducing its production, too.

The new arrangement was loosely called OPEC+.

Meanwhile, oil production in the U.S. surged from just 5 million barrels per day (b/d) in 2007 to 12 million b/d today. The additional production reduced the need for so much imported oil in the U.S., and it added to the surplus of oil on the international markets.

The reduction in production by OPEC+ – set at 800,000 b/d from OPEC members and 400,000 b/d from Russia and other non-OPEC countries – did ease the oversupply, and prices slowly increased….
 

Oil prices rise in response to turmoil in Middle East

By Alex Mills

 

June 27, 2019

 

Oil prices continued to rise last week as tension between the U.S. and Iran escalated sparking fear of declining availability of oil from the Persian Gulf.

Crude oil closed at $59.14 on Wednesday on the New York Mercantile Exchange and $66.26 for Brent, the international benchmark traded in London.

President Trump blamed Iran for attacks on oil tankers that had passed through the Strait of Hormuz and shooting down a U.S. drone over the Gulf. Trump announced last week new and tougher sanctions against Iran.

Iran threatened to shut down all exports through the strait if sanctions were not lifted. Approximately 20 percent of the oil consumed worldwide flows out of the Gulf through the strait.

The Wall Street Journal reported that “RBC Capital Markets forecasts that 21 very large crude carriers (VLCC) will be loaded this month along the U.S. Gulf Coast, well above the monthly average this year of 13 ships and the record of 17 reached in March.”

Day rates for oil tankers have increased along with insurance premiums, the newspaper stated.

The threat of hostile activities against oil tankers in the Persian Gulf has created an increase in demand for U.S. oil exports.

Texas is a leading producer of crude oil, and production continues to rise with some 40 percent of all U.S. production coming from Texas. The Permian Basin of West Texas leads the way accounting for 54 percent of the permits to drill in Texas in May….