Aker BP has discovered oil at the Frosk prospect in the North Sea off Norway's coast and is drilling an appraisal well at the site. The discovery, which is near the Norwegian company's Alvheim field, could contain an estimated 30 million to 60 million barrels of oil equivalent.
As producers in the Permian Basin accelerate infill drilling and use more hydraulic fracturing stages, the risk of well interference or "frack hits" becomes more serious every day due to tighter well spacing. Frack hits can cause mechanical, physical or chemical damage to wells which can result in declining production, according to Apache engineering adviser George King, who encourages operators to share information with each other to prevent these problems.
Chesapeake Energy is planning to acquire additional oil assets as it looks to diversify its natural gas-dominated portfolio. The company has oil-producing properties in the Eagle Ford Shale, Powder River Basin and the Midcontinent, with an output of 100,000 barrels per day in the fourth quarter.
OPEC's production cut agreement is helping the US become an export powerhouse because it gives shale exporters the opportunity to gain more market share and expand their global footprint, according to Morningstar Director of Research Commodities and Energy Sandy Fielden. Total US crude oil exports jumped to an average of 1.3 million barrels per day in the week ending Feb. 9, with West Texas Intermediate's discount to Brent serving as another driver of foreign demand for US crude.
The largest oil and natural gas lease auction in US history is scheduled to take place on March 21, the Interior Department announced Friday. The auction will involve 77.3 million acres offshore Texas, Louisiana, Mississippi, Alabama and Florida.
US proved natural gas reserves climbed 5% to 341.1 trillion cubic feet in 2016, while proved reserves of oil and condensate were unchanged from 2015 at 35.2 billion barrels, according to the Energy Information Administration. Pennsylvania posted the largest net increase in gas proved reserves in 2016, adding 6.1 trillion cubic feet.
US drillers deployed seven oil rigs to oilfields across the country last week, bringing the oil rig count to 798, according to Baker Hughes. However, the gains were offset by a seven-rig drop in the number of natural gas rigs.
San Antonio-based Andeavor Logistics has acquired the 575-mile Wamsutter Pipeline System from Plains All American Pipeline for $180 million. The system supplies crude oil to Salt Lake City refineries.
Drillers in Colorado's Niobrara region are expected to pump a record of 579,000 barrels of oil per day in March, encouraged by higher oil prices, according to the Energy Information Administration. Oil output from the Niobrara is seen climbing even further as drillers step up well completions, with the number of uncompleted wells down to 553, the lowest level since November 2014.
A magnitude 5.9 earthquake shook southern Mexico near Oaxaca early today after a larger quake damaged about 1,000 houses Friday in the same region. Friday's quake caused buildings to sway in Mexico City, which is about 483 kilometers north of Oaxaca.