.The Texas Energy Report

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.The Texas Energy Report

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….
 

TXOGA talks industry opportunities with students

May 27, 2020

Texas Oil & Gas Association (TXOGA) President Todd Staples recently joined Texas Land Commissioner George P. Bush at Lamar University in Beaumont to discuss how oil and natural gas in Texas are fueling education.

“The Texas General Land Office has long played a key role in funding education across Texas, with the oil and natural gas industry being a strong partner of this mission,” said Bush. “The dollars that this industry pumps into education in Texas are helping provide the learning opportunities that are vital to our state’s efforts to better prepare the next generation of innovators and leaders.”….
 

U.S. Oil Industry Faces ‘Very Uncertain’ Future

By Alex Mills

 

May 27, 2020

Crude oil prices have firmed up from its crash one month ago, but the industry’s reduction in capital expenditures and decline in future drilling will negatively impact its ability to replace current production in the future.

The Federal Reserve Bank of Dallas issued a report this week stating: “We expect at least a 35 percent drop in such investment (U.S. oil and gas producers) between the first and second quarters of 2020 in real (inflation-adjusted) terms, which will reduce nonresidential business fixed investment by 6 percentage points alone.”

A big portion of the capital expenditures (capex) by industry includes drilling and completion costs. The U.S. drilling rig count declined this week to historic low of 339 compared to 985 last year, which is a decline of 688 active drilling rigs (70 percent), according to the Baker Hughes Rig Count. In Texas, the rig count declined 332 from 482 a year ago to 150 currently (69 percent)…..
 

Reliant Energy Donates $100,000 To Baylor Scott & White For COVID-19 Digital Tracker: Press Release

May 26, 2020

Baylor Scott & White Health announced today a $100,000 donation from Reliant in support of its MyBSWHealth mobile app. Launched in 2018, the MyBSWHealth app has emerged as a leading digital tool in Texas in the fight against COVID-19, providing nearly 175,000 digital screenings and more than 45,000 eVisits related to the virus. This process has allowed tens of thousands of Texans with mild symptoms to be evaluated outside of Baylor Scott & White clinics and emergency departments—further ensuring that hospitals are ready for those who need care most during this time….