07182018Wed
Last updateWed, 18 Jul 2018 2pm

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U.S. Oil and Gas Revenues at Four-Year High

The 50 largest U.S. exploration and production (E&P) companies increased capital expenditures for the first time since 2014, according to the EY U.S. Oil and Gas Reserves Study 2018. Companies also reported the highest oil reserves during the five-year study period (2013–2017), while US oil production posted an average 4% annual growth, even accounting for a modest decline in output in 2016.

The survey, which analyzes U.S. E&P results based on 2017 end-of-year U.S. oil and gas reserve estimates, found that study companies reported capital expenditures of $114.5 billion — 32% higher than 2016 and 5% higher than 2015. Similarly, study companies’ revenues amounted to $135.9 billion — up 32% from 2016 and the highest since 2014 as a result of improved commodity prices. 


U.S. Sees Surge in Drilled Natural Gas Wells

The American Petroleum Institute (API) released its quarterly well completion report for the second quarter of 2018 showing a 265% increase in estimated exploratory gas well completions as compared to the second quarter of 2017.

Today’s report shows the continued growth and strength of U.S. energy production,” said API chief economist Dean Foreman. “Right now, the U.S. production is supplying substantially all the growth in oil demand throughout the world. For this growth and dominance to continue, our energy infrastructure must keep pace with production especially in areas like the Permian Basin in Texas and the Bakken in North Dakota that have experienced major growth in natural gas and oil production.” 

$550M Natural Gas Project Under Way in Texas

Permico Midstream Partners' Texas NGL Project, a $550 million natural gas liquids separation project, “received eight years of tax abatements from Nueces County,” the Houston Chronicle  reports.

“The Houston company includes a natural gas liquids fractionator that can process around 300,000 barrels of liquids a day and separate them into their component parts, such as ethane, propane and butane. The facility would be connected to more than 500 miles of pipelines from the Permian Basin in West Texas to the Gulf Coast.” 

Shale Gas Export Projects Facing Permit Delays

“Government approval of projects intended to export rising supplies of shale gas could be delayed by 18 months as the top energy regulator struggles with a backlog of permit requests,” Bloomberg  reports.

“The Federal Energy Regulatory Commission is notifying some developers of multi-billion-dollar liquefied natural gas plants of a 12- to 18-month delay in environmental reviews, the people said, asking not to be named because the information isn’t public. That could affect the commercial viability of several ventures vying for a spot in the rapidly expanding global gas market.” 

Trade Disputes Threaten U.S. LNG Standing

A trade war with China, the EU and others is hindering U.S. efforts “to become the world’s largest exporter of liquefied natural gas. In Europe, a potential pipeline project from Russia has been imperiled by possible U.S. sanctions, while the sales practices of Qatar, the world’s biggest LNG seller, are under investigation as being anti-competitive,” Bloomberg  reports.

“The complications arising from trade disputes and geopolitical tensions could distort the global gas market, although it’s unlikely to derail its growth.” 

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