Important conversations have a lot of variables to keep tabs on, and one action that can help is creating a framework, writes David Hiatt. "[T]he conversation should have an agreed upon purpose, confirmation of the time allotted, agreed upon agendas and expectations of people engaged in the conversation, and a goal or outcome at the end of the conversation," he writes.
Permian Basin infrastructure constraints and widening oil price differentials are prompting oil and natural gas producers with diversified portfolios to reallocate capital to other oil regions, reports the Energy Department. The department pointed to a Noble Energy executive's statement during an earnings call that the company was tempering its Delaware Basin activity to focus on Colorado's Denver-Julesburg Basin as an example.
Eagle Ford Shale mergers and acquisitions could reach record levels in 2018, according to Scotiabank Global Investment Banking Director Robert Urquhart, as Permian Basin pipeline bottlenecking continues slowing down activity and the industry looks toward more frustration-free areas. The Permian has had $45 billion worth of deals so far this year and the Eagle Ford Shale is second with $15 billion, while Oklahoma's SCOOP and STACK fields have attracted $9 billion in investment.
Hoping to replicate the Texas shale boom elsewhere, oil giants such as Chevron are applying factory models to simplify hydraulic fracturing operations and solve and prevent pipeline bottlenecks, labor shortages and other problems plaguing the US shale industry. "They can transfer technology and skilled people across assets and parts of their portfolio from North America to Argentina," says Andrew Slaughter, executive director of Deloitte's Center for Energy Solutions.
US refiners stepped up activity in the past few months, counteracting a distillate deficit but also pushing gasoline supplies to 234 million barrels at the end of last week, a record for this time of year, writes Reuters analyst John Kemp. To avoid a fuel glut, refineries might need to reduce crude processing for longer than usual during the fall maintenance season, Kemp adds.
Chevron, ExxonMobil and Occidental Petroleum announced Thursday that they're joining the Oil and Gas Climate Initiative, a global coalition formed in 2014 by oil and natural gas industry giants to fight climate change. ExxonMobil and Chevron will also contribute $100 million each to a fund currently worth $1 billion that invests in carbon-reduction technologies.
North Dakota regulators may amend the state's oil conditioning regulations that require companies to remove volatile gases from oil before it's transported by rail. The proposed changes include removing the requirement to conduct quarterly vapor pressure tests.
The Minnesota Public Utilities Commission has unanimously approved a 42-turbine portion of a 100-turbine wind farm that will straddle the Minnesota-Iowa line. Invenergy is developing the Freeborn Wind Farm, which has been highly contested due to concerns about sound.
Government officials in Saskatchewan, Canada, have approved the 56-turbine Blue Hill Wind Energy Project. The Canadian Wind Energy Association says Saskatchewan has a goal for wind to account for 30% of its generating capacity by 2030.
- Page 1