Exclusives

Mexico, Round One, oil, gas, blocks, Gulf of Mexico, Phase 1

Commodity price uncertainty aside, issues raised after Mexico’s Round 1 Phase 1 can be addressed to move the country toward its goal of growing production and strengthening its economy.

proppant, frack sand, consolidation, PacWest, IHS, Samir Nangia

The top 10 frack sand suppliers claim 55% of total business, while more than 40 companies make up the remaining percentage.

Packers Plus, oil prices, technology, service

Service companies with technology that impacts efficiency, cost and risk are seeing an increase in customers.

Kinder Morgan, Shell, Georgia, LNG, Elba Liquefaction Project

The reasons for the sale weren't disclosed, but in April, Shell said it was buying BG Group Plc, which has a global portfolio of LNG, for about $70 billion.

Mexico, Round One, oil, gas, blocks, Gulf of Mexico, CNH

Of the 14 blocks up for bid, eight received no bids and four had bids thrown out because they did not meet the government’s minimum requirements.

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

The auction’s next phase consists of five shallow-water production-sharing contracts that cover blocks containing proven reserves and are set to be awarded on Sept. 30.

The July 15 auctions are the first opportunity for private companies to explore for oil and gas in Mexico since the nationalization of the country’s crude industry on March 18, 1938.

Laredo Petroleum, earth model, geology, oil, production, Permian, Randy Foutch

Knowledge gained from earth-modeling efforts enables companies to better use geological findings to determine which way to direct the drillbit.

The agreement that Harbour Energy Ltd. and Mexico’s ALFA had to buy Toronto-based Pacific Rubiales for CA$2 million fell through. ALFA’s CEO said the offer “correctly valued” Pacific Rubiales.

Pemex is focusing on the upcoming farm outs and was dissuaded from bidding after falling oil prices crimped earnings, according to Mexico's energy minister.

Production

Total oil and gas output averaged 564,000 barrels oil equivalent per day, down 4% from a year earlier, Apache said.

Mexico’s energy ministry came up with a figure of lost offshore oil output almost 3x higher than Pemex’s, Bloomberg said. An April 1 blast affected the Abkatun fixed platform.

Bakken, fracking, carbon dioxide, proppant, shale

A major IOC is set to use CO2 and proppant in a first of its kind test well in the Bakken Shale.

Refracking, shale, horizontal drilling, IHS, Bloomberg

Refracking has been met with enthusiasm—especially when it works—and skepticism, but in order to move forward, the industry needs a large-scale refracking program and more investment IHS says.

well stimulation, oil services, Hart Energy

Per-stage pricing for well stimulation services have fallen from $80,000 to $90,000 for standard plug and perf in fourth-quarter 2014 to the mid-$50,000 range in second-quarter 2015, according to Hart Energy telephone surveys. But the carnage in oil services pricing could be nearing the end.

Technology

Requirement that consortia bidding on blocks must have one member as guarantor and $6 billion in shareholder equity to protect Mexico’s interest if major accident occurs will ease, Reuters said.

Carin Knickel served as vice president, human resources, for ConocoPhillips Inc. from 2003 until her retirement in 2012.

The rise in the rig count this week was the biggest increase since April 2014. It was, however, only the third addition over the past 33 weeks, bringing the total rig count up to 659, the highest since late May.

Snyder, Texas-based Patterson-UTI said its margins were improving and its U.S. rig count was stabilizing, while Calgary-based Precision Drilling said it expected its market share to improve due to demand for high-tech rigs.

Under the terms of the contract, ConocoPhillips is obligated to pay Ensco termination fees monthly for two years equal to the operating day rate of about $550,000, which may be partially defrayed should Ensco re-contract the rig within the next two years and/or mitigate certain costs.