Pioneer Natural Resources has bought a 15-year stake in US Silica Holdings' Permian Basin sand mine in Lamesa, Texas, in return for access to sand supplies at roughly half the price Pioneer currently pays. The first sand delivery is slated for the first quarter of next year, with volumes expected to reach at least 2 million tons annually by 2020.
China's decision to levy a 10% tariff on US liquefied natural gas will likely prompt Chinese buyers to look at other sellers, possibly affecting the ability of US LNG companies to negotiate long-term contracts, experts say. However, the 10% tariff is lower than China's originally planned 25% levy, "a signal to the market that China was acknowledging how dependent they are on imported LNG, and imported U.S. LNG," says Height Securities analyst Katie Bays.
Deliveries of US liquefied natural gas to China are slowing down amid mounting trade tensions between the two countries, with only four vessels going to China since June, down from 17 in the first five months of 2018. China was expected to import 141.6 billion cubic feet of US LNG this year, but the actual figure will likely be less than 100 billion cubic feet.
The Interior Department's Bureau of Land Management formally rolled back an Obama-era regulation curbing methane leaks from oil and natural gas drilling on publicly owned land. The department says the move would save the industry up to $2.08 billion over a decade.
Mexico's incoming government is reviewing oil contracts awarded under the outgoing administration to check for possible corruption. The first deal under review is a 2015 pact involving a Talos Energy-led consortium that gained development rights for two blocks and later discovered a deposit containing between 1.2 billion and 1.8 billion barrels of crude oil.
Just a few years after Aker BP created software company Cognite to digitize its assets, Cognite is selling its software to Aker's rivals in an effort to improve it. One competitor, Lundin Petroleum, has agreed to share data from its Norwegian Edvard Grieg field with Aker's nearby Ivar Aasen field to help increase oil production.
The UK has approved Cuadrilla's second shale gas well, and the driller says that in a few weeks, it will begin hydraulic fracturing at its Preston New Road site in northwest England. The company, which received government approval for the first well in July, plans to conduct flow tests in both wells for about six months.
China National Offshore Oil and ConocoPhillips have started production at their oilfield project in China's south-central Bohai Sea, says CNOOC, which serves as the field's operator. The field is set to maximize production at about 58,700 oil barrels daily in 2020.
Faroe Petroleum says it aims to increase appraisal and exploration operations through 2019. Faroe is planning seven exploration and appraisal wells, including one it already has started in the UK.
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