Showing posts from April, 2021

Equinor Finalizes Sale of Bakken Shale Assets

  Equinor, a Norwegian-owned petroleum company, has finally completed the sale of their onshore assets in the Bakken Shale. Their decision to sell their assets comes after a decade of multibillion-dollar losses and criticism for their bad investment choices. Equinor has sold all its operated and non-operated acreage (along with their midstream assets) in the Bakken region in North Dakota and Montana to Grayson Mill Energy for a total of $900 million.  They will continue to operate their assets for the coming four months, after which they'll hand over all of the operations to Grayson Mill Energy. Despite this significant change of ownership, Grayson Mill Energy has stated that nearly all field staff and many of those in the maintenance teams currently on the Bakken assets will remain after the transition.  What do we know about the Equinor Bakken Shale assets?  Equinor Bakken Shale Asset The Bakken region has dramatically evolved during the last decade's shale boom and currently

Pennsylvania Operator To Acquire Three Natural Gas Producers

  Last week, American Energy Partners Inc. stated its plans to acquire three oil and natural gas producers. The deal is valued at almost $11 million and includes companies in western Pennsylvania and West Virginia. American Energy Partners said it would obtain all of the stock and units of the three undisclosed companies. CEO Brad Domitrovitsch says: “ This transaction furthers our commitment to acquiring steady cash-flowing businesses while enhancing our ability to develop alternative green energy opportunities with the vast amount of acreage included in the package.”  The sale involves 467 wells currently yielding 1.25 Bcfe/d and midstream assets spread over 695 acres (includes 100% owned surface and mineral rights). Additionally, there are no drilling commitments or obligations for the properties. American Energy controls several subsidiaries, including:  Oilfield Basics LLC Hickman Geological Consulting LLC American Energy Solutions LLC Hydration Company of PA Gilbert Oil and Gas T

Is a Strong Oil Demand Expected This Year?

  According to the world's largest oil traders, global oil demand is set for a rebound. Between now and the end of 2022, global consumption is expected to increase by up to 8 million barrels each day. Vitol Group, the world's largest oil trader, supports this statement.  In an interview with Bloomberg, Vitol's chief executive Russell Hardy said, "We'll need all eight cylinders to get through 2022". This, of course, is due to the lower than average demand for oil at the moment. Reopening economies and Asian markets will create a strong demand rebound by the end of this year and in 2022.  Although the demand for jet fuel will slowly increase, it will still be below average at the end of the year. Nevertheless, a surge in petrochemicals will offset the expected delay in jet fuel demand. Last year, the oil surplus reached a record of 1 billion barrels. This excess is already more than halfway drained, and experts believe it will be depleted by the third quarter th

Huge Job Increase During the Month of March for Oilfields

  Since the start of the pandemic, companies in the shale industry have laid off 102,000 workers. While the industry has slowly recovered in some states, some are still suffering and have needed to continue to lay off workers. Texas has been hit the worse, as they have had to lay off over 39,000 workers since February 2020. According to the Hobby School of Public Affairs, jobs in the shale industry dropped from 691,866 in March 2020 to 628,362 in March 2021, a 9% decline.  Losing these workers who comprise the OFS sector jeopardizes the development of innovative technologies that increase productivity, improve environmental performance, and decrease greenhouse gas emissions. Recent BLS (Bureau of Labor Statistics) revisions reported that in February 2021, job loss was 7,697. This is still significantly less than January 2021, which was 10,048. Despite workers still being laid off, this year seems to be better than last year as the sector was a rollercoaster ride with all of the job lo

Biden’s ‘Infrastructure’ Bill Threatens Natural Gas

  Like most politicians, President Biden made promises during his campaign that he has no intention of keeping. As a result, the domestic natural gas industry will likely suffer. With that, President Biden plans to roll out a new  infrastructure plan . Back in 2019, Biden stated his hopes to ban hydraulic fracturing. These statements came back to haunt him in his battle with Donald Trump to win the state of Pennsylvania. A large portion of the state's economy is the Marcellus shale natural gas production. Without the use of fracking, companies cannot produce natural gas.  During the initial part of the election campaign, Biden's staff persuaded the public that Biden would not ban fracking. However, the public was not convinced, so Biden traveled to Pittsburgh to discuss the critical role natural gas would play in his administration's energy plans.  Later, his campaign rolled out a "Clean Energy Plan", designed to achieve a national net-zero carbon emissions outcom