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 →


Supply Crunch Or Oil Glut: Investment Banks Can’t Agree

by Tsvetana Paraskova for Oilprice.com In recent years, U.S. shale has thrown in another unknown in the mix of factors driving the price of oil. This year, shale output forecasts combine with OPEC’s production cuts, geopolitical factors, and unexpected outages to further complicate supply/demand and oil price forecasts by Wall... Read more →


EIA STEO projects higher US crude production, increases in travel and gasoline demand

In its latest Short-Term Energy Outlook (STEO), the US Energy Information Administration (EIA) projects that US crude oil production, which averaged an estimated 8.9 million barrels per day (b/d) in 2016, will average 9.2 million b/d in 2017 and 9.9 million b/d in 2018. That level is higher than originally... Read more →


by Viktor Katona for Oilprice.com On a global level, 2015 and 2016 marked the lowest level of new conventional oil discoveries since 1952. In 2016, only 3.7 billion barrels of conventional oil were discovered, roughly 45 days of global crude consumption or 0.2 percent of global proved reserves. Globally, exploratory... Read more →


by Dwayne Purvis for Oilprice.com Notwithstanding that oil demand has increased for over 150 years, it will eventually stop increasing. If oil demand were to reach an actual peak, then the top might be easier to predict. As it stands, the forecast models of demand are likely predicting peak demand... Read more →


US State Department issues Presidential Permit to TransCanada for Keystone XL

The US Department of State has signed and issued a Presidential Permit to construct the Keystone XL Pipeline. The permit authorizes TransCanada to construct, to connect, to operate, and to maintain pipeline facilities at the US-Canadian border in Phillips County, Montana for the importation of crude oil. In November 2016,... Read more →


An OPEC Deal Extension Isn’t As Simple As It Sounds

by Tsvetana Paraskova for Oilprice.com It’s been six months now that oil prices have been reacting to OPEC, first to the possibility of an agreement, and then to the production cut deal itself, forged by OPEC to rebalance the market. The deal—initially aired as “an agreement to agree on a... Read more →


by Nick Cunningham of Oilprice.com The oil majors reported poor earnings for the fourth quarter of last year, but many oil executives struck an optimistic tone about the road ahead. Oil prices have stabilized and the cost cutting measures implemented over the past three years should allow companies to turn... Read more →


The 2017 edition of the BP Energy Outlook, published today, forecasts that global demand for energy will increase by around 30% between 2015 and 2035, an average growth of 1.3% per year. However, this growth in energy demand is significantly lower than the 3.4% per year rise expected in global... Read more →


Not So Prolific: US Shale Faces A Reality Check

by James Stafford of Oilprice.com The collapse of oil prices has forced the US shale industry to slash production costs. In order to improve the breakeven costs for the average shale well, the industry has deployed three general strategies: improving techniques and technology, such as drilling longer laterals or using... Read more →


BP has sanctioned the $9-billion Mad Dog Phase 2 project in the United States, despite the current low oil price environment. Mad Dog Phase 2 will develop resources in the central area of the giant Mad Dog field through a subsea development linked to a new floating production platform with... Read more →


Are The Saudis About To Reveal The Best Kept Secret In Oil?

by Nick Cunningham of Oilprice.com One of the oil world’s longest and best kept secrets may finally be revealed. Saudi Arabia is preparing to unveil how much oil it holds, a closely guarded state secret that has been kept quiet for decades. The decision to bring such important data to... Read more →


US offshore oil and gas leasing plan for 2017-2022 focuses on Gulf of Mexico, excludes Arctic

US Secretary of the Interior Sally Jewell and Bureau of Ocean Energy Management (BOEM) Director Abigail Hopper released the final plan to guide future energy development for the Nation’s Outer Continental Shelf (OCS) for 2017-2022. The Proposed Final Program offers 11 potential lease sales in four planning areas—10 sales in... Read more →


Oil and Gas Climate Initiative to invest $1B over 10 years in low-emissions tech

The Oil and Gas Climate Initiative (OGCI) will invest $1 billion over the next ten years to develop and to accelerate the commercial deployment of innovative low-emissions technologies. Led by the heads of ten oil and gas companies that aim to lead the industry response to climate change, OGCI member... Read more →


US total petroleum demand up in September year-on-year; highest September gasoline deliveries on record

Total petroleum deliveries in September increased 1.0% from September 2015, but were down 2.6% from August to average 19.6 million barrels per day, according to figures from the American Petroleum Institute (API). These September deliveries were the highest deliveries for the month in nine years, since 2007. For the third... Read more →


The National Renewable Energy Laboratory (NREL), together with leading petroleum refining technologies supplier W.R. Grace, and leading pilot plant designer Zeton Inc., built a unique pilot-scale facility that can produce biomass-derived fuel intermediates with existing petroleum refinery infrastructure. This pilot plant, constructed in part with funding from the Bioenergy Technologies... Read more →


Caelus Energy Alaska, LLC, a privately held independent exploration and production company, announced that its subsidiary, Caelus Energy Alaska Smith Bay LLC, has made a significant light oil discovery on its Smith Bay state leases on the North Slope of Alaska. Based on two wells drilled in early 2016, as... Read more →