How crude-oil prices influence gasoline prices

by Michael Sivak. Gasoline is one of the products refined from crude oil. Thus, the price of crude oil should have a strong influence on the price of gasoline. However, the retail price of gasoline includes other costs as well. The Energy Information Administration (EIA) estimates that in the United... Read more →


API reports record US petroleum production in April: 10.543 million b/d; strongest April demand since 2007

April saw the US produce a record 10,543,000 barrels per day (MBD) of oil, according to data from the American Petroleum Institute. The first four months of this year also saw US petroleum demand average 750,000 barrels a day above the same period in 2017 despite higher prices. Total petroleum... Read more →


Study finds that proximity to fracking sites increases public support of them

People who live closer to fracking sites are more familiar with and more supportive of hydraulic fracturing, while those who live in proximity to areas of higher oil and gas well density are more familiar with but not necessarily more supportive of the practice, a new study from Oregon State... Read more →


Shell Offshore Inc., a subsidiary of Royal Dutch Shell plc, made its final investment decision for Vito, a deep-water development in the US Gulf of Mexico with a forward-looking, break-even price estimated to be less than $35 per barrel. This decision sets in motion the construction and fabrication of a... Read more →


Short-term oil demand is still growing strong and will continue to do so through the end of 2020 despite the market’s increasing focus on electric vehicles and the forecasted future plateau in oil demand, according to new analysis from IHS Markit, a global business information provider. Five-year rolling aggregate global... Read more →


New Zealand Prime Minister Jacinda Ardern announced that the government will grant no further offshore oil and gas exploration permits. Existing permits will not be affected. Energy and Resources Minister Dr. Megan Woods said that this year’s block offer will be limited to onshore acreage in Taranaki alone. The onshore... Read more →


A team of Idaho National Laboratory (INL) researchers, with colleagues at Georgia Tech, has pioneered an electrochemical process that could eliminate the need for high-energy steam cracking. In an open-access paper in the RSC journal Energy and Environmental Science, the researchers suggest that their study provides a disruptive approach for... Read more →


Bahrain: newly discovered oil and gas field holds at least 80B barrels of tight oil, P50

Bahrain’s National Oil and Gas Authority (NOGA), alongside international consultants DeGolyer and MacNaughton, Halliburton, and Schlumberger, have provided new details on the Kingdom’s largest discovery of oil and gas (earlier post), with tight oil amounting to at least 80 billion barrels, based on a P50 resource estimate. P50 is a... Read more →


Novel microbial biosensor platforms for early detection and treatment of oil leakage and produced waters

Researchers at Mississippi State University are developing technology that would alert pipeline managers about leaks as soon as failure begins, avoiding the environmental disasters and fuel distribution disruptions resulting from pipeline leaks. The biosensor uses exoelectrogenic bacteria in an anode that survive on organic matter and a photo or autotrophic,... Read more →


Oil production growth from the United States, Brazil, Canada and Norway can keep the world well supplied, more than meeting global oil demand growth through 2020, but more investment will be needed to boost output after that, according to the International Energy Agency’s latest annual report on oil markets. Over... Read more →


Study finds global emissions of ethane and propane underestimated by more than 50%

Global levels of the hydrocarbons ethane and propane in the atmosphere have been underestimated by more than 50%, according to a new study by a team of scientists from Europe and the US. When ethane and propane—the most abundant non-methane hydrocarbons (NMHC) in the atmosphere—mix with nitrogen oxides from vehicles... Read more →


ExxonMobil adds 2.7B barrels oil equivalent to reserves; replaces 183% of 2017 production

Exxon Mobil Corporation added 2.7 billion oil-equivalent barrels of proved oil and gas reserves in 2017, replacing 183% of production. ExxonMobil’s proved reserves totaled 21.2 billion oil-equivalent barrels at year-end 2017. Liquids represented 57% of the reserves, up from 53% in 2016. ExxonMobil’s reserves life at current production rates is... Read more →


ExxonMobil’s newly released Outlook for Energy: A View to 2040 anticipates that global energy needs will rise about 25% over the period to 2040, led by non-OECD countries. While the mix shifts toward lower-carbon-intensive fuels, the world will need to pursue all economic energy sources, the report says. The Outlook... Read more →


Can The Shale Boom Avoid These Bottlenecks?

by Nick Cunningham of Oilprice.com Shale companies continue to drill at a frenzied pace, adding rigs and breaking US oil production levels with each passing week. Yet, the oil production is becoming increasingly geographically concentrated. Not only is the Permian basin accounting for much of the new oil production in... Read more →


Shell Offshore Inc. announced one of its largest US Gulf of Mexico exploration finds in the past decade from the Whale deep-water well. The well encountered more than 1,400 net feet (427 meters) of oil-bearing pay. The Whale discovery is located approximately 200 miles (322 kilometers) southwest of Houston in... Read more →


New energy research from business information provider IHS Markit has identified more than five billion barrels of oil equivalent (BOE) in numerous smaller, previously bypassed, or underperforming reservoirs outside North America that offer oil and gas operators a shorter-cycle path to production than new, frontier projects in undeveloped areas. The... Read more →


ExxonMobil to triple Permian production by 2025; >$2 billion in terminal and transportation expansion

ExxonMobil plans to triple total daily production to more than 600,000 oil-equivalent barrels by 2025 from its operations in the Permian Basin shale oil region in West Texas and New Mexico. Tight oil production from the Delaware and Midland basins will increase five-fold in the same period. The company said... Read more →


Why Is The Shale Industry Still Not Profitable?

By Nick Cunningham of Oilprice.com Echoing the criticism of too much hype surrounding US shale from the Saudi oil minister last week, a new report finds that shale drilling is still largely not profitable. Not only that, but costs are on the rise and drillers are pursuing “irrational production.” Riyadh-based... Read more →


EIA forecasts US crude oil production rate to break record high in 2018 and again in 2019; 10.3 and 10.8 million b/d

In its latest edition of the Short-Term Energy Outlook, the US Energy Information Administration (EIA) forecasts that US crude oil production will average 10.3 million b/d in 2018—the highest annual average production in US history, surpassing the previous record of 9.6 million b/d set in 1970. EIA also forecasts that... Read more →


Eni’s proprietary Eni Slurry Technology (EST) is able to convert refining residues entirely into high-quality light products, eliminating both liquid and solid refining residues with significant environmental benefits. Eni has now sold the licence and basic engineering project to the Chinese company Sinopec for the construction of a refining plant... Read more →


ExxonMobil Corporation announced positive results from its Ranger-1 exploration well, marking ExxonMobil’s sixth oil discovery offshore Guyana since 2015. The Ranger-1 well discovery adds to previous world-class discoveries at Liza, Payara, Snoek, Liza Deep and Turbot, which are estimated to total more than 3.2 billion recoverable oil-equivalent barrels. In October,... Read more →


DOE selects 6 projects for $30M in funding to boost unconventional oil and natural gas recovery

The US Department of Energy (DOE) has selected six projects to receive approximately $30 million in federal funding for cost-shared research and development in unconventional oil and natural gas (UOG) recovery. The projects, selected under the Office of Fossil Energy’s (FE’s) Advanced Technology Solutions for Unconventional Oil and Gas Development... Read more →


UTSA partners with SwRI on deepsea pipeline corrosion and traffic management system projects

The University of Texas at San Antonio (UTSA) and Southwest Research Institute (SwRI) have announced two new research projects, which will receive a total of $250,000 in funding. The first project will research a new technique to mitigate cracking and corrosion in piping and related equipment used by the oil... Read more →


Study finds heavy-petroleum fuels raising vanadium emissions; human emissions outpacing natural sources by factor of 1.7

Human emissions of the potentially harmful trace metal vanadium into Earth’s atmosphere have spiked sharply since the start of the 21st century due in large part to industry’s growing use of heavy oils, tar sands, bitumen and petroleum coke for energy, a new Duke University study published in the Proceedings... Read more →


National Academies’ Gulf Research Program awards $10.8M to address systemic risk in offshore oil and gas operations

The Gulf Research Program (GRP) of the National Academies of Sciences, Engineering, and Medicine is awarding $10.8 million to six new projects to develop new technologies, processes, or procedures that could result in improved understanding and management of systemic risk in offshore oil and gas operations. The greatest risk in... Read more →


API: US petroleum demand last month highest for October since 2007; 19.9 mbpd

Total petroleum deliveries in October moved up by 1.1% from October 2016 to average 19.9 million barrels per day, according to data from the American Petroleum Institute (API). These were the highest October deliveries since 2007. Compared with September, total domestic petroleum deliveries, a measure of US petroleum demand, decreased... Read more →


According to the US Department of Energy (DOE) Energy Information Administration (EIA), in 2015 total petroleum production exceeded all US transportation sector petroleum consumption. The EIA expects petroleum production to be greater than transportation consumption through 2040. Including non-petroleum sources such as ethanol, the production will exceed transportation demand by... Read more →


Honeywell UOP opens first facility in China to test flare emissions for VOCs

Honeywell UOP’s Callidus Technologies business began operation of China’s only facility capable of testing flare emissions for volatile organic compounds (VOCs). The test center in Luoyang, Henan Province, aids customers that are working to reduce emissions of VOCs in industrial flare systems and improve flare operation. The Callidus Luoyang Combustion... Read more →


NAS: concerns remain about rail transport for energy liquids, gases; pipeline, maritime have more comprehensive safety system in place

With the sharp and largely unexpected increase in the long-distance movement of domestically produced crude oil, ethanol, and natural gas since 2005, a number of concerns have arisen about the safe transport of these hazardous materials, particularly in relation to railroad track defects, rural communities’ emergency response preparedness, and the... Read more →


Researchers from Carnegie Mellon University and the University of Pittsburgh have found that the air pollution and greenhouse gas costs of shipping crude by rail are nearly twice as large as those for oil pipelines. Further, their estimates of air pollution and greenhouse gas costs are much larger than estimates... Read more →


The “Amazon Effect” Is Coming To Oil Markets

by Irina Slav for Oilprice.com While OPEC mulls over further steps to once again support falling oil prices, tech startups are quietly ushering in a new era in oil and gas: the era of the digital oil field. Much talk has revolved around how software can completely transform the energy... Read more →


The Next Big Offshore Boom Is About To Happen in Brazil

by Irina Slav for Oilprice.com Say what you will about offshore oil and gas exploration, but it’s still alive and kicking—high production costs and all. The latest demonstration of the viability of deepwater projects, even in the post-2014 oil industry era, comes from none other than Brazil. On Wednesday, the... Read more →


California calls for improved air quality monitoring at refineries in the state

California state and local air quality officials released a draft report outlining a range of recommended actions to improve air monitoring at the state’s oil refineries, and strategies to better inform surrounding communities during incidents at refineries that result in increases in pollution or toxic releases. The draft report, the... Read more →


ExxonMobil expands methane emissions reduction program

ExxonMobil announced an enhanced program to reduce methane emissions from its production and midstream facilities across the United States. The program prioritizes actions at sites operated by subsidiary XTO Energy and includes efforts to develop and deploy new, more efficient technologies to detect and reduce facility emissions. Methane detection and... Read more →


Energy researchers at IHS Markit have completed the first, three-year phase of a massive Permian Basin research project that models and interprets the giant basin’s key geologic characteristics to better estimate its remaining hydrocarbon potential. Initial results indicate the giant basin still holds an estimated 60 billion to 70 billion... Read more →


Baker Institute expert: crude-oil production increase a risky strategy for Saudi Arabia

A number of factors are pushing Saudi Arabia to raise its crude-oil production capacity, but the wide range of potential outcomes suggests that such an increase is a risky strategy for the kingdom and the global environment, according to a new article by an expert from Rice University’s Baker Institute... Read more →


On 27 October 2016, the International Maritime Organization (IMO) announced that beginning on 1 January 2020, the maximum sulfur content allowed in marine bunker fuel will be reduced from 3.50% mass by mass (m/m) to 0.50% m/m (35,000 ppm to 5,000 ppm)—five years earlier than many expected. (Earlier post.) The... Read more →


The Next Oil Price Spike May Cripple The Industry

by Andreas de Vries and Dr. Salman Ghouri for Oilprice.com Two diametrically opposed views dominate the current debate about where the oil price is heading. On the one hand, there is the view that the price of oil will be “lower for longer”, or even “lower forever”, as the electrification... Read more →


“Dirty, Difficult, And Dangerous”: Why Millennials Won’t Work In Oil

by Tsvetana Paraskova for Oilprice.com Like many industries today, the oil industry is trying to sell its many job opportunities to the fastest growing portion of the global workforce: Millennials. But unlike any other industry, oil and gas is facing more challenges in persuading the environmentally-conscious Millennials that oil is... Read more →


A new study finds that as some of the world’s largest oilfields age, the energy required to keep them operating can rise dramatically even as the amount of petroleum they produce drops. Failing to take the changing energy requirements of oilfields into account can cause oilfield managers or policymakers to... Read more →


The Technical Failure That Could Clear The Oil Glut In A Matter Of Weeks

by Cyril Widdershoven for Oilprice.com OPEC exports have come under pressure this week from technical threats to oil fields, with Saudi Arabia’s Manifa problems grabbing the headlines. Saudi Aramco CEO Amin Nasser, while addressing the World Petroleum Congress in Istanbul, stated that the outlook for oil supplies is “increasingly worrying”,... Read more →


IndianOil and LanzaTech to construct first refinery Offgas-to-Bioethanol production facility

Indian Oil Corporation Limited (IndianOil), India’s flagship national oil company and LanzaTech signed a Statement of Intent to construct the world’s first refinery offgas-to-bioethanol production facility in India. The basic engineering for the 40-million liter per year (10.6 million gallons US/year) demonstration facility will begin later this year for installation... Read more →


Nicolas Hulot, France’s new minister responsible for environment and energy, presented the country’s new climate plan at a press conference at the Ministry. Prepared at the request of the President and the Prime Minister, the climate action plan is divided into six main themes: render the Paris Agreement irreversible; improve... Read more →


Today’s Stunted Oil Prices Could Cause Oil Price Shock In 2020

by Haley Zaremba for Oilprice.com As oil prices remain unsteady and OPEC continues to make headlines every hour, the world is focused on oil’s immediate future. As Saudi Arabia announces plans to slash production and move their economy away from oil dependency, many industry insiders are predicting that the now... Read more →


US Shale Is Immune To An Oil Price Crash In 2017

by Tsvetana Paraskova for Oilprice.com Since OPEC announced the production cut deal at the end of November, industry analysts have been warning that rising production from producers outside the deal—U.S. shale in particular—is effectively capping the oil price gains from that agreement. Four months after the OPEC/NOPEC deal took effect,... Read more →