Exclusives

cost, inflation, shale, oil, gas

The price per stage for well stimulation services moved higher in fourth-quarter 2016, signaling an end to the downward arc in well completion costs.

Reliable, cost-effective option for early production of unconventional wells delivers significant savings for North Dakota operator.

Gulf of Mexico, Pemex, bid, round, deepwater, CNH

Eight of 10 blocks were awarded during Mexico’s first deepwater round. Mexico expects to hold three more oil and gas auctions before the end of 2018.

The North American shale landscape has transformed over the last several years as the industry has ridden the waves of price volatility and has finally hit its first major downcycle for shale producers.

Schlumberger, shale, drilling, technology, rig, fracturing, subsea, tieback, Kibsgaard, Rowe

The company is gearing up to roll out its “rig of the future” next year as its Cameron Group looks for further subsea tieback growth opportunities.

Deepwater International

The emerging Paleogene play in the US Gulf of Mexico continues to offer increasing encouragement for major deepwater discoveries, with Chevron confirming a significant find.

Shell's CEO Ben van Beurden says, "there is a lot more to do" in its North American deepwater sectors. 

Exploration

Dan Jarvie, chief geochemist at Renaissance, said the Upper Jurassic shale interval—the Chicontepec Formation’s major carbonate source rock—has not been commercially developed.

Total Energy first made a proposal to buy Savanna in November, before later raising its offer earlier in December. Savanna Energy had a market value of about C$190 million as of close on Dec. 14.

The acquisition of NavPort adds a key data component to RS Energy's service offerings, the Calgary, Alberta-based company said.

Australia-based BHP outbid Britain's BP, the only other company that participated, with a $624 million offer to complement its 4% additional royalty bid, said Mexico's oil regulator, the national hydrocarbons commission (CNH).

If successful, the blocks could generate up to $4 billion worth of investment each, and as much as $11 billion in the case of Trion, Joaquin Coldwell said, citing Pemex estimates.

Production

Drillers added four oil rigs in the week to Jan. 6, bringing the total count up to 529, the most since December 2015, energy services firm Baker Hughes Inc. (NYSE: BHI) said on Jan. 6.

Drillers added two oil rigs in the week to Nov. 11, bringing the total count up to 452, the most since February, but still below the 574 rigs seen a year ago, energy services firm Baker Hughes Inc. (NYSE: BHI) said on Nov. 11.

Baker Hughes, drilling, oil, market, Martin Craighead

As global energy demand and oil price uncertainty linger, one of the world’s largest oilfield services company is positioning itself for growth.

fracking, refrack, refracturing, oil, shale, EnerCom, stimulation, Mike Vincent

Further optimization could lead to better frack designs, stage and well spacing, greater production and ultimately, more profit.

EOG Resources, completions, DUC, production, second quarter, Bill Thomas, oil

The company is counting on growing “premium inventory”—wells that generate rates of return of at least 30% at $40/bbl oil— to increase resource potential.

Technology

Mexico planned to announce the winners of the first phase of the so-called Round Two tender, which includes 15 shallow-water areas in the Gulf of Mexico, on March 22, Reuters reported.

Drillers added 12 oil rigs in the week to Dec. 16, bringing the total count to 510, the highest since January, but still below 541 rigs a year ago, energy services firm Baker Hughes Inc. (NYSE: BHI) said Dec. 16.

Almost two-thirds of the rigs added since May, or 109, were in the Permian, bringing the total in the nation's biggest oil shale formation up to 246, the most since September 2015.

ConocoPhillips CEO Ryan Lance said the spending cuts, asset sales and other steps should help the company be profitable with Brent oil prices of $50 per barrel. Brent traded at $46.18 on Nov. 10.

The joint venture (JV) covers Pemex’s Trion Field and marks a major step in the opening up of Mexico’s oil industry, a process enabled by a landmark energy reform in 2013 that permits Pemex to enter E&P JVs for the first time.