Topping news this week, the U.S. has talked to large oil producers over ways to increase the supply of crude oil and offset any impact from the reimposition of sanctions on Iran. That’s coming from Treasury Secretary Steven Mnuchin. However, Mark Papa, CEO of Centennial Resource Development, told Reuters following a meeting with the board of Saudi Aramco in Houston that’s not likely to happen this year. He said many U.S. shale producers have already set the 2018 spending budgets and are wary of pumping more as shareholders call for higher dividends. Bruce Bullock, director of the Maguire Energy Institute in Dallas, said the sanctions could put about one million barrels of crude per day in the oil market at risk. On the other hand, William Featherston, a Credit Suisse analyst, said oil prices and the exploration and production sector will not be affected by the sanctions because the market appears tight.
In other international news, ConocoPhillips is trying to seize PDVSA’s oil assets at the 335,000 bbl/d Isla refinery in Curacao, which would expand its control over the Venezuelan state-run company’s barrels for export. Also, Norway will hold a new licensing round for its offshore oil and gas fields in already opened areas, further expanding the exploration acreage available to energy firms. Those areas include the North, Norwegian, and Barents Sea.
The Energy Capital Conference was held in Dallas this week where the discussions centered on everything from deals to big data. Among the highlights, Jamie Webster of Boston Consulting Group predicted the OPEC deal will end with a slow erosion of the cuts as countries put more barrels on the market. Meanwhile, a group of private equity panelists agreed that much more capital is needed to meet worldwide demand and said now is the time for private companies to create value while public companies are somewhat out of favor with investors.
Sources:
- US Talks To Oil Producers About Increasing Output
-
How US Withdrawal From Iran Nuclear Deal Affects Oil Prices
-
ConocoPhillips Aims To Seize PDVSA Oil Inventories In Curacao
-
Norway Launches Licensing Round In Mature Offshore Oil, Gas Areas
-
UPDATED: Energy Capital Conference Talk Turns To Deals, Big Data
Recommended Reading
Benchmark Closes Anadarko Deal, Hunts for More M&A
2024-04-17 - Benchmark Energy II closed a $145 million acquisition of western Anadarko Basin assets—and the company is hunting for more low-decline, mature assets to acquire.
‘Monster’ Gas: Aethon’s 16,000-foot Dive in Haynesville West
2024-04-09 - Aethon Energy’s COO described challenges in the far western Haynesville stepout, while other operators opened their books on the latest in the legacy Haynesville at Hart Energy’s DUG GAS+ Conference and Expo in Shreveport, Louisiana.
Mighty Midland Still Beckons Dealmakers
2024-04-05 - The Midland Basin is the center of U.S. oil drilling activity. But only those with the biggest balance sheets can afford to buy in the basin's core, following a historic consolidation trend.
Mesa III Reloads in Haynesville with Mineral, Royalty Acquisition
2024-04-03 - After Mesa II sold its Haynesville Shale portfolio to Franco-Nevada for $125 million late last year, Mesa Royalties III is jumping back into Louisiana and East Texas, as well as the Permian Basin.