Exclusives

crude, oil prices, price drop, IHS, study

Prices have not yet fallen far enough for an appreciable supply adjustment to occur, researchers say.

Chevron, job, cuts

Of the positions that will be eliminated 950 are in the Houston, where Chevron has about 8,000 employees.

talent management, job cuts, oilfield services, KPMG

Some companies are offering employees flex leave to stay connected during downtime, experts say.

KPMG, oilfield service, operators, producers, efficiency

An improved relationship could lead to greater cost savings with both earning higher margins.

Schlumberger, earnings, 2Q, international, technology, Paal Kibsgaard

Performance in international markets—especially in the Middle East, Venezuela and Argentina—and new technology revenue are among the bright spots in Schlumberger’s second-quarter 2015 results.

Deepwater International

According to WoodMac, its analysis of 2,222 oil fields suggests that if Brent crude falls to US $40/barrel, which is entirely possible, 1.6% of global oil supply could turn cash negative on an operating cost basis. 

At PETEX 2014, Richard Herbert, COO, Exploration at BP, highlighted a number of global trends in exploration that he believes will be factors as energy demand continues on its ongoing growth curve. 

Exploration

Understanding drainage volume and improved permeability of stimulated rock is essential to forecasting production, according to MicroSeismic Inc.

Apache Energy Ltd., the Australian subsidiary, was sold to a private-equity fund consortium managed by Macquarie Corporate Holdings Ltd. and Brookfield Asset Management Inc. Proceeds totaled $1.9 billion.

The next energy hot spots make the move to the front burner. 

Eldar Saetre didn’t comment on Statoil’s deals strategy, but speculated more deals will follow Shell’s purchase of BG, Bloomberg said. Sellers’ high valuation expectations are problematic, he said.

Halliburton Co. will separately sell its fixed cutter and roller cone drillbits, directional drilling and LWD/measurement while drilling businesses. It is currently working to acquire Baker Hughes Inc.

Production

Britain’s Buzzard oil field, the most important source of crude oil underpinning the global benchmark Brent, was closed after power supplies failed, traders said.

In its monthly report, the Organization of the Petroleum Exporting Countries said it expected world oil demand to increase by 1.34 million barrels per day (MMbbl/d) in 2016, up from growth of 1.28 MMbbl/d this year.

The IEA, which advises the world’s biggest economies on energy policy, said “something has to give” because the world oil market was unable to absorb the huge volumes of fuel now being produced.

The worldwide rig count for June 2015 was 2,136, up 9 from the 2,127 counted in May 2015, and down 1,309 from the 3,445 counted in June 2014, Baker Hughes said in a news release.

oil, production, tanker

The release of floating oil volumes will introduce additional supply into an already saturated market and exacerbate the number of unsold Mediterranean, North Sea and West African cargoes in the Atlantic Basin.

Technology

Shell is set to become the largest Brazilian offshore foreign operator after it completes the merger with BG, which it announced in April.

Oil and gas majors have slashed capex budgets between 10% and 15% this year in response to oil prices halving over the past year.

Reservoir Monitor Tool 3-Detector will be useful to identify pay zones in mature fields, which make up 70% of worldwide oil and natural gas production.

Schlumberger under Chief Executive Paal Kibsgaard has cut 20,000 jobs in 2015 and scaled back spending in response to weak crude prices.

According to the agreement, Granherne will support Subsea 7 on concept and FEED studies, and Subsea 7 will support Granherne with subsea engineering and technology.