Tag Archives: production

Saudi Arabia Ousts Longtime Oil Minister

May 2016, Vol. 243, No. 5

DUBAI, United Arab Emirates (AP) — Saudi Arabia on Saturday announced the ouster of its longtime oil minister as part of a larger ongoing government shakeup. A royal decree announced that Ali al-Naimi has been replaced by former Health Minister and Saudi Aramco board chairman Khaled al-Falih. Al-Naimi has long been a pillar of Saudi oil policy, leading the Ministry of Petroleum and Mineral Resources since 1995. Prior to that role he’d served as the president of oil giant Aramco. Under a new Saudi leadership led by King Salman, the king’s son Deputy Crown Prince […]

Fracking Wells Provide Two-Thirds of US Natural Gas Production

May 2016, Vol. 243, No. 5

For decades, hydraulic fracturing had been referred to as an unconventional completion technique, but over the past 10 years it has become the technique by which most natural gas is produced in the United States. Based on the most recent data from states, EIA estimates that natural gas production from hydraulically fractured wells now makes up about two-thirds of total U.S. marketed gas production. This share of production is even greater than the share of crude oil produced using that method, where hydraulic fracturing accounts for about half of current U.S. crude oil production. Hydraulic […]

Kuwait Oil Unions End 3-day Strike over Government Cutbacks

April 2016, Vol. 243, No. 4

KUWAIT CITY (AP) — Oil unions in Kuwait ended a three-day strike over government cutbacks, authorities said Wednesday, though it remained unclear what concessions may have been granted to the workers amid low global crude prices. The state-run Kuwait News Agency reported that the unions ended the strike by praising the country’s ruling emir, Sheikh Sabah Al Ahmad Al Sabah, and saying their action showed their “ability to affect the production process.” The unions “entrusted his highness, the emir, (with) the protection of rights of the employees in the oil sector,” the unions said, according […]

Lower US Supply to Underpin Oil Price Despite Talks Failure

April 2016, Vol. 243, No. 4

LONDON (AP) — The failure by oil-rich nations to agree to freeze production sent crude prices lower Monday. But prices recovered much of their losses by afternoon, and analysts said that oil is likely to rise in the longer term as many companies, particularly in the U.S., scale back output. The effort to reach a consensus on limiting production to support prices failed after Iran stayed away from a weekend meeting of 18 oil-producing nations in Doha, Qatar. Saudi Arabia said it wouldn’t back a deal if regional rival Iran, which is trying to ramp up output […]

US Energy Production Increases for 6th Consecutive Year

April 2016, Vol. 243, No. 4

Total U.S. energy production increased for the sixth consecutive year. According to data in EIA’s most recent Monthly Energy Review, energy production reached a record 89 quadrillion British thermal units (Btu), equivalent to 91% of total U.S. energy consumption. Liquid fuels production drove the increase, with an 8% increase for crude oil and a 9% increase for natural gas plant liquids. Natural gas production also increased 5%. These gains more than offset a 10% decline in coal production. The United States saw little change in production from nuclear electric power and renewable energy (across all sectors) […]

U.S. Natural Gas Production Reaches Record High in 2015

April 2016, Vol. 243, No. 4

U.S. natural gas production reached a record high level of 79 billion cubic feet per day (Bcf/d) in 2015, an increase of 5% from the previous year, even as natural gas prices remained relatively low. Production from five states—Pennsylvania, Ohio, West Virginia, Oklahoma, and North Dakota—was responsible for most of this growth, offsetting declines in much of the rest of the United States. EIA uses three different concepts to measure natural gas production. Gross withdrawals are the full volume of compounds extracted at the wellhead, which includes all natural gas plant liquids and nonhydrocarbon gases […]

BP Sets Up Shale Gas Operation in China

March 2016, Vol. 243, No. 3

UK-listed BP and China’s CNPC aren’t exactly strangers, already jointly developing Iraq’s Rumaila oilfield, but BP’s new shale gas deal with CNPC is the British company’s first foray into China – and it’s a major strategic move that gauges which way the winds are blowing in today’s energy sector. Last week, BP announced it had signed a production sharing agreement with China’s CNPC for the development of shale gas resources in the Neijiang-Dazu deposit in the Sichuan Basin. The agreement is the next step in a framework agreement reached by the two companies last year. […]

Oil Majors Only Replace 75% of Oil and Gas Produced in 2015

March 2016, Vol. 243, No. 3

The oil majors failed to replace all of the oil and gas reserves that they burned through in 2015, a worrying sign for the industry’s future. The Wall Street Journal reported that the seven largest oil and gas companies only replaced about 75 percent of the reserves on average that they produced last year, the worst replacement rate in over a decade. Perhaps the most eye-raising fact was that ExxonMobil, the world’s largest publically-traded oil company, was unable to replace 100 percent of the oil and gas it pulled from the ground. The oil supermajor […]

U.S. Production of Hydrocarbon Gas Liquids Expected to Increase Through 2017

March 2016, Vol. 243, No. 3

U.S. production of hydrocarbon gas liquids (HGL)—a group of products including ethane, propane, butanes, and natural gasoline—is expected to increase from 3.86 million barrels per day in 2015 to 4.33 million b/d in 2017, according to EIA’s Short-Term Energy Outlook (STEO). HGLs are produced at both natural gas processing plants and petroleum refineries, but natural gas plants are expected to provide more than 95% of the forecast production growth. Between 2008 and 2015, HGL production at natural gas processing plants (including fractionation facilities) increased as a by-product of the growing supply of natural gas from […]

Scuttled Israel Gas Deal Frustrates US, Israeli Developers

March 2016, Vol. 243, No. 3

JERUSALEM (AP) — Israeli and American energy companies expressed disappointment on Monday over Israel’s Supreme Court decision that struck down a government deal that would have given them the rights to begin pumping natural gas from offshore deposits. David Stover, the chairman of Houston-based Noble Energy, said the ruling was “disappointing.” Prime Minister Benjamin Netanyahu had emphatically supported the deal struck between his government and a consortium of gas developers as a path to Israeli energy independence, new regional alliances and billions of dollars in revenue. Critics said the deal gave too much profit to […]

High Production, Low Prices Mean Little Change in Natural Gas Storage Capacity

March 2016, Vol. 243, No. 3

High levels of natural gas production and relatively low natural gas prices are affecting markets for seasonal natural gas storage, including the value of additional storage capacity. For the second year in a row, no new natural gas storage facilities were added, and the slight changes, both positive and negative, at existing storage fields resulted in national storage capacity remaining essentially flat for the year. EIA measures natural gas storage capacity inNovember each year, which is typically when net storage withdrawals begin. With elevated natural gas production, prices have been low and stable in recent […]

Hydraulic Fracturing Accounts for About Half of Current U.S. Crude Oil Production

March 2016, Vol. 243, No. 3

Even though hydraulic fracturing has been in use for more than six decades, it has only recently been used to produce a significant portion of crude oil in the United States. This technique, often used in combination with horizontal drilling, has allowed the United States to increase its oil production faster than at any time in its history. Based on the most recent available data from states, EIA estimates that oil production from hydraulically fractured wells now makes up about half of total U.S. crude oil production. Hydraulic fracturing involves forcing a liquid (primarily water) […]