.The Texas Energy Report

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.The Texas Energy Report

US Pipeline Incidents Down 35% Despite 10% Jump In Line Miles: Industry News Release

June 8, 2020

U.S. pipeline incidents have fallen more than 35 percent in the last five years, despite a 10 percent increase in miles of new pipelines constructed, according to a recent report by the American Petroleum Institute in collaboration with the Association of Oil Pipelines. During this time, oil and natural gas production was at an all-time high, and the number of barrels of product shipped through the line increased by 35 percent….
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Natural Gas Oversupply Results in Exceptionally Low Prices

By Alex Mills

 

June 4, 2020

Natural gas, the nation’s largest source of electricity, has been in a growth mode during the last 40 years.

“Demand for natural gas has been growing more than any other fuel in absolute terms,” Dr. Scott Tinker, director of the Bureau of Economic Geology at the University of Texas at Austin, said in the May issue of the American Oil and Gas Reporter. “Over the past 40 years, gas use has increased more than 500 percent globally. That is a remarkable growth rate.”

Even though overall demand has increased during the last four decades, current demand is declining because of decreased economic activity created by the global pandemic coronavirus.

Bloomberg reported this week the “global gas market remains extraordinarily oversupplied,” and some analysts expect demand to fall further and storage capacity could reach capacity this summer.

The Energy Information Administration reports natural gas deliveries to U.S. facilities producing liquefied natural gas (LNG) for export, called “LNG feedgas”, declined to 5.6 billion cubic feet per day (Bcf/d) on May 24 and averaged 6.7 Bcf/d from May 1-26, according to data by IHS Markit….
 

Oil Prices Recover As Demand Rises

By Alex Mills

 

June 2, 2020

The decline in the demand for petroleum products worldwide has delivered a severe blow to the oil and gas industry in Texas as companies are forced to reduce expenses as revenues fall through the floor.

The oversupply of oil caused prices to decline from $60 per barrel in January to a low of -$37 on April 20. The unprecedented crash caused most companies to announce they would cut capital expenditures immediately. The U.S. drilling rig count fell to 318 this week from 915 a year ago, and the Texas Workforce Commission reports the industry in Texas cut 26,300 jobs during April, another record.

Companies had to cut oil production quickly, and they did. The Energy Information Administration (EIA) estimates U.S. oil production has declined about 1 million barrels per day (b/d) from a high of 13 million b/d in March.

Rystad Energy predicts U.S. oil production will decline even further reaching 10.7 million b/d this summer…..
 

Update: Texas O&G 1Q Results Roundup

June 2, 2020

Adds Denbury Resources, Sunnova Energy — EOG Resources, Genesis Energy, Holly Energy Partners, Marathon Oil, Noble Midstream Partners, Occidental Petroleum, Plains All American, Range Resources, Vistra Energy. Added to: Callon Petroleum, Calpine Corp, Earthstone Energy, El Paso Electric, Enbridge, Energy Transfer, Goodrich Petroleum, Kimbell Royal Partners, Laredo Petroleum, NRG, Rattler Midstream, Ring Energy, Riviera Resources, Saudi Aramco, Spark Energy, Summit Midstream Partners, Talos Energy and Targa Resources, Vaalco Energy, Weatherford International….