Texas accounts for 49% of active land rigs, RCC says

AUSTIN, Texas -- The Texas average rig count as of Aug. 15, was 899, representing about 49% of all active land rigs in the U.S. In the last 12 months, total Texas reported production was 802 MMbbl of oil and 7.9 Tcf of natural gas.

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PetroChina vows catch up with Sinopec starting with shale

HONG KONG (Bloomberg) -- PetroChina Co. plans to move out of the big shadow cast by its smaller rival. PetroChina, the country’s largest oil and natural gas producer, aims to catch up with main competitor China Petroleum & Chemical Corp., or Sinopec, in the production of shale gas, according to PetroChina President Wang Dongjin. “We are about a year and a half behind Sinopec in shale gas exploration because we concentrated our resources on the Longwangmiao natural gas project in Sichuan,” Wang said at a press conference in Hong Kong Aug. 28 after the company posted a 4% increase in first-half profit.

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YPF, Petronas ink $550 million JV to develop Vaca Muerta

KUALA LUMPUR, Malaysia (Bloomberg) -- YPF SA and Petroliam Nasional Bhd., state-controlled companies from Argentina and Malaysia, signed a $550 million accord to develop shale oil at the world’s fourth-largest deposit in Vaca Muerta. Miguel Galuccio and Shamsul Azhar Abbas, CEOs for YPF and Petronas, respectively, signed a deal to develop a 187-sq-km area (72 sq miles) at Petronas’s Kuala Lumpur headquarters Aug. 28, the Buenos Aires-based producer said in an emailed statement.

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Tullow announces results of Kenya drilling, testing program

LONDON -- Tullow Oil has announced the results from a series of exploration, appraisal and testing activities conducted in Blocks 10BB and 13T onshore Kenya. The Etom-1 exploration well in Block 13T is the most northerly well drilled to date in the South Lokichar basin, 6.5 km north of the previous Agete-1 discovery.

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Kurds recapture Iraq oil fields, advance on rebel-held towns

MOSUL, Iraq (Bloomberg) -- Kurdish and Iraqi forces recaptured two oil fields and mounted an offensive to retake the town of Zummar, part of a broader bid to recover vast areas of the country’s north lost to Islamic State fighters. Kurdish fighters, known as Peshmerga, retook Ain Zala and Batma oil fields in northern Iraq, Hisham al-Brefkani, head of the energy committee of Nineveh provincial council, said by phone Aug. 28. Islamic State militants set fire to a crude oil storage tank as they tried to halt the advance, al-Brefkani said, denying earlier reports that two oil wells were set on fire. Kurdish forces also took control of several villages around Zummar, he said.

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WPX adds partner to accelerate development of Trail Ridge properties

TULSA, Oklahoma -- WPX Energy has closed an agreement to jointly develop its Trail Ridge properties with TRDC LLC, a subsidiary of Houston-based G2X Energy. The Trail Ridge development is part of WPX' s position in western Colorado' s Piceance Basin Highlands. WPX will remain as operator.

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Drillsearch Energy looks at more deals in outback Australia

SYDNEY (Bloomberg) -- Drillsearch Energy Ltd., BG Group Plc’s exploration partner in central Australia, will study further acquisitions in the outback region after its proposed purchase of Ambassador Oil & Gas Ltd. The company is looking at opportunities to add oil and gas acreage in the Cooper basin through its “Project Uber,” Brad Lingo, managing director of Sydney-based Drillsearch, said Aug. 27 in a phone interview. Its Ambassador offer in May follows an acquisition of Acer Energy Ltd. in 2012.

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Wintershall Libya production restart held back by infrastructure

STAVANGER, Norway (Bloomberg) -- Wintershall AG, the oil and gas unit of German chemical group BASF SE, said a lack of infrastructure is the only thing holding it back from resuming onshore oil production at full capacity in Libya. “We’re ready to start production almost any day,” Martin Bachmann, Wintershall’s executive director for exploration and production, told reporters Aug. 27 in Stavanger, on Norway’s west coast. “What we lack is the export infrastructure. One day it’s the harbors which are occupied; when they’re open, the pipelines aren’t available.”

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Santos to re-enter the Mt Kitty-1 exploration well in the Northern Territory's onshore Amadeus basin

Santos to re enter the Mt Kitty 1 exploration well in the Northern Territory' s onshore Amadeus basin BRISBANE, Australia Central Petroleum Limited (Central) has been advised by Santos, the Operator of Amadeus Basin permit EP 125, that it plans to

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URTeC 2014: Baker Hughes introduces fracture analysis services to increase production and ultimate recovery

URTeC 2014 Baker Hughes introduces fracture analysis services to increase production and ultimate recovery DENVER Baker Hughes has announced the commercial release of its StageWatch fracture analysis services that include monitoring sleeves and retrievable pressure temperature (P T) gauges to

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MicroSeismic announces FracRx

HOUSTON -- MicroSeismic has announced the release of its latest technology, FracRx, a proprietary service which allows operators to increase asset values by optimizing the treatment of each well. The FracRx service integrates microseismic data with an operator’s pump and geological data to track the growth of the fracture network in all directions and determine how the cumulative fracture area grows with injected fluid volume.

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Fracing link to birth defects probed as further studies sought

AURORA, Colorado (Bloomberg) -- The first research into the effects of oil and gas development on babies born near wells has found potential health risks. Government officials, industry advocates and the researchers themselves say more studies are needed before drawing conclusions. While the findings are still preliminary, any documented hazards threaten to cast a shadow over hydraulic fracturing, or fracing. “It’s not really well understood how the environment interacts with genetics to produce these birth defects,” said Lisa McKenzie of the Colorado School of Public Health, who conducted research published in January in the journal Environmental Health Perspectives. “We really need to do more study to see what the association is, if any, with natural gas development.”

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URTec 2014: Baker Hughes introduces Navi-Drill motors for high-performance shale drilling

Baker Hughes introduces Navi Drill motors for high performance shale drilling DENVER Baker Hughes has announced the commercial release of two new motors designed for drilling unconventional reservoirs. The 7 in. Navi Drill Ultra XL45 offers high power and torque

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URTeC 2014: Integrating geosciences and technologies to develop unconventional plays

URTeC 2014 Integrating geosciences and technologies to develop unconventional plays PRAMOD KULKARNI, Editor DENVER – The second annual Unconventional Resources Technology Conference (URTeC) opened with a plenary session focusing on a multidisciplinary approach to state of the art breakthroughs, pragmatic

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U.S. oil rigs decline by most since 2012, Baker Hughes says

HOUSTON (Bloomberg) -- Oil rigs targeting oil in the U.S. declined by 25 this week to 1,564, according to Baker Hughes Inc. The drop was the largest since December 2012. Total rigs fell by 17 to 1,896, data posted on the company’s website show. The gas count increased by nine to 330, the Houston-based field services company said. Rigs fell the most in the Permian basin of Texas and New Mexico, dropping by three to 555.

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Enbridge avoids U.S. review with plan to boost oil sands flow

CALGARY, Alberta (Bloomberg) -- Enbridge Inc. said it found a way to ship more Alberta oil to the U.S. that doesn’t require a review similar to the one faced by Keystone XL: switching crude from one pipeline to another before it crosses the border. The State Department, responsible for approving cross-border energy projects like the Alberta Clipper and the proposed Keystone XL line to the U.S. Gulf Coast, said in a statement that Enbridge can go forward with its plan under authority granted by previously issued permits. The plan drew criticism from environmental groups, including the National Wildlife Federation, opposed to new imports from Canada’s oil sands because mining and processing the fuel releases more climate-warming carbon than other types of crude.

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North Atlantic Drilling hands Rosneft $1 bn stake

HAMILTON, Bermuda (Bloomberg) -- North Atlantic Drilling Ltd., the rig-owner controlled by billionaire John Fredriksen, will hand OAO Rosneft a stake valued at more than $1 billion in return for land rigs and cash, deepening ties amid sanctions on Russia. North Atlantic will issue Rosneft about 100 million new shares at $9.25 apiece, giving Russia’s biggest oil company about a 30% stake, said Rune Magnus Lundetrae, CFO of Seadrill Ltd., which owns 70% of North Atlantic. At a closing price of $10.3 on Aug. 21, such a stake is valued at more than $1 billion.

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Ryan Directional Services selects Alcoa's drill pipe for North American shale

HOUSTON -- Ryan Directional Services, a division of Nabors, has selected Alcoa’s oil and gas drill pipe for its onshore horizontal drilling applications across North American shale plays. Under the agreement, Ryan has exclusive rights to deploy Alcoa’s FarReach alloy drill pipe for use with directional mud motor technology in horizontal drilling.

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Robust activity is heating up North American frac market, PacWest says

HOUSTON -- PacWest Consulting Partners forecasts strong market growth in the North American market for hydraulic fracturing services through 2016 due to robust drilling and completion (D&C) activity, with frac pricing increases expected through 2015. Tightening market conditions are resulting in supply chain constraints in key growth plays. Constraints in the availability of frac sand and the logistics capacity to transport the frac sand are leading to cost escalation and work delays. PacWest provides an in-depth analysis and set of forecasts for the North American and International frac markets in the 14Q2 release of its PumpingIQ report, just published on Aug. 15.

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Permian shale boom upending values of heavy and light crude

MIDLAND, Texas (Bloomberg) -- Skyrocketing oil production in the Permian basin has reversed a decades-old price relationship between heavy and light crude in the U.S.’s largest oil patch. West Texas Sour traded at a $5-a-barrel premium to West Texas Intermediate in Midland, Texas, Aug. 20 after reaching $10 on Aug. 19, the highest level in Bloomberg data dating back to 1989.

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DNO faces delays in Kurdistan as suppliers flee Iraq violence

OSLO, Norway (Bloomberg) -- DNO ASA said projects in the Kurdistan region will probably be delayed after service companies evacuated staff because of violence near the region. The timing of some projects in DNO’s three Kurdistan blocks will be “likely impacted by developments beyond our control,” the Oslo-based company said Aug. 21 in presentation material published with second-quarter results. “A number of services companies, equipment suppliers, drillers and other contractors have evacuated personnel and suspended Kurdistan operations.”

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Global wins, Tesoro waits on bringing Bakken crude to West

WALTHAM, Massachusetts (Bloomberg) -- Just as Global Partners LP gained approval to unload more oil from rail cars at a marine terminal in Oregon, Tesoro Corp. learned its plans for a similar project in neighboring Washington will have to wait. The projects are among several oil-by-rail proposals facing rising opposition after a series of derailments added to questions about the safety of carrying crude by train. Terminals are being developed across the western U.S. as refiners, lacking pipeline access, turn to rail to move crude from shale formations where output is booming.

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Canada oil train crash report finds new safety steps needed

LAC-MEGANTIC, Quebec (Bloomberg) -- Canada must take a greater role to improve rail safety and demand railroads put measures in place to prevent runaway trains such as the one that destroyed the downtown of Lac-Megantic, Quebec last year, the Transportation Safety Board said. In its 181-page report, the board found 18 causes that contributed to the accident -- including a “weak” safety culture at Montreal, Maine & Atlantic Railway Ltd.; “poor” training of employees; tank cars that didn’t offer enough protection, and not enough safety audits by the government’s transportation department.

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Cairn Energy engages with Indian government on tax dispute

Cairn Energy engages with Indian government on tax dispute EDUARD GISMATULLIN EDINBURGH (Bloomberg) Cairn Energy, a stakeholder in the operator of India’s biggest onshore oilfield, is working with the newly elected government to resolve a tax dispute involving its $1.1

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Enbridge’s Midwest pipeline can proceed, federal court rules

CALGARY, Alberta (Bloomberg) -- Enbridge Inc.’s pipeline to carry tar sands oil between Oklahoma and Illinois can proceed, a federal judge ruled, as companies expand their capacity to move petroleum in the U.S. “Because a private company is constructing the 589-mile pipeline on mostly privately owned land that is entirely within the territorial borders of the United States, no federal statute authorizes the federal government to oversee or regulate the construction project,” U.S. District Judge Ketanji Brown Jackson in Washington said Aug. 18 in a written ruling.

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Wood Group Intetech establishes global database of well component reliability information

ABERDEEN -- Wood Group Intetech (WG Intetech), a provider of well integrity management services, has developed a new software platform for analyzing global well component reliability data. Called iQRA, the tool provides operators with insight to make better, more informed decisions about the selection of well and oilfield components.

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Fairmount Santrol renaming reflects history of two brands

CHESTERLAND, Ohio -- Fairmount Minerals announced that it is adopting a new name—Fairmount Santrol—to better reflect the combined strength and history of the company' s Fairmount Minerals and Santrol brand names.

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Pemex CEO begins Chevron-to-BP talks as output prospects dim

MEXICO CITY (Bloomberg) -- For Petroleos Mexicanos CEO Emilio Lozoya, the arrival of foreign oil producers after a 76-year hiatus can’t come soon enough. Facing deteriorating output and a lack of resources to develop new finds, the 39-year-old former World Economic Forum executive said he’s in talks with all major producers as Mexico accelerates the opening of its oil industry. At the same time, he’s considering revising production estimates as water content rises at aging fields such as Cantarell, once the world’s third-largest deposit.

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Oil sands at biggest risk from falling crude price, study says

LONDON (Bloomberg) -- ConocoPhillips and Royal Dutch Shell Plc are among global oil companies needing crude prices as high as $150 a barrel to turn a profit from Canada’s oil sands, the costliest petroleum projects in the world, according to a study. The next most-expensive crude projects are in the deep waters off the coasts of Africa and Brazil, with each venture needing prices between $115 and $127 a barrel, said Carbon Tracker Initiative, a London-based think tank and environmental advocacy group, in a report.

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Oil rigs extend record with Bakken drilling at 19-month high

HOUSTON (Bloomberg) -- Rigs targeting oil in the U.S. climbed to a record as drillers sought out crude in the Williston basin, one of the nation’s fastest-growing plays. Oil rigs gained one to 1,589, data posted on Baker Hughes Inc.’s website show. Those targeting crude in the Williston basin, home of the Bakken formation in North Dakota, rose by three to 194, the most since Jan. 18, 2013. The Denver-Julesburg basin and Niobrara formation spread across Colorado and Wyoming also added five oil rigs to reach a record 46, the Houston-based field services company said in an email.

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Soros doubles investment in YPF after Mendoza shale discovery

Soros dobles investment in YPF after Mendoza shale discovery NEW YORK (Bloomberg) George Soros’ $28 billion family office more than doubled its stake in YPF SA, making the state controlled oil producer its biggest U.S. traded stock holding two years

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YPF tests oil production at third shale discovery, CEO says

YPF tests oil oroduction at third shale discovery, CEO says PABLO GONZALEZ BUENOS AIRES (Bloomberg) YPF SA said it discovered oil at a well in the Agrio formation in southwestern Patagonia, the third shale find in the country in four

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India increasingly dependent on imported fossil fuels as demand rises, says EIA

WASHINGTON, D.C. -- India' s dependence on imported fossil fuels rose to 38% in 2012, despite the country having significant domestic fossil fuel resources. India ranked as the fourth-largest energy consumer in the world in 2011, following China, the U.S. and Russia. The country' s energy demand continues to climb as a result of its dynamic economic growth and modernization. India is the third-largest economy on a purchasing power parity basis, and has the world' s second-largest population, according to World Bank data.

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Shell divests U.S. onshore gas assets in Pinedale/Haynesville, adds acreage in Marcellus/Utica

HOUSTON -- Shell today announced two separate transactions whereby the company will exit its Pinedale and Haynesville onshore gas assets, in exchange for approximately $2.1 billion in cash, plus additional acreage in the Marcellus and Utica shale areas in Pennsylvania.

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ONGC net misses estimates as cost of drilling dry wells doubles

ONGC net misses estimates as cost of drilling dry wells doubles RAKTEEM KATAKEY and DEBJIT CHAKRABORTY NEW DELHI ONGC’s first quarter profit missed analyst estimates after India’s biggest explorer doubled costs for drilling dry wells and sold crude at a

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Pemex gets all fields with probable reserves before Round Zero

Pemex gets all fields with probable reserves before Round Zero ADAM WILLIAMS MEXICO CITY (Bloomberg) Pemex, preparing for the end of its 76 year state oil monopoly, was granted rights to all the proved and probable oil reserves it sought

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Rex Energy to acquire Shell affiliate properties in Marcellus, Utica

STATE COLLEGE, Pa. -- Rex Energy Corporation today announced the acquisition of approximately 208,000 gross (207,000 net) acres in the company' s Butler Operated Area.

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Eagle Ford ShaleTech Breakfast Series: “Partnerships enable systematic technology development”

Eagle Ford ShaleTech Breakfast Series “Partnerships enable systematic technology development” PRAMOD KULKARNI, Editor SAN ANTONIO – Systematic technology development through operator service company partnerships result in productivity gains was the key message at the inaugural ShaleTech Breakfast Series Eagle Ford,

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Mexico enacts energy initiative, to decide on blocks for bidding this week

MEXICO CITY -- Mexican President Enrique Pena Nieto today signed into law the rules governing the country' s historic opening of the state-run oil, gas and electricity industries to foreign and private companies.

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Billionaire Richard Kinder streamlines empire to target midstream rivals

Billionaire Richard Kinder streamlines empire to target midstream rivals JOE CARROLL HOUSTON (Bloomberg) Billionaire Richard Kinder is consolidating his pipeline empire to strengthen it for growth as the U.S. shale drilling boom opens up $1.5 trillion in potential purchases and

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Blackstone said to be in talks to buy Shell's Haynesville stake

NEW YORK (Bloomberg) -- Blackstone Group LP, the private-equity firm led by billionaire Stephen Schwarzman, is in advanced talks to acquire Royal Dutch Shell Plc’s 50% stake in a shale-gas field in Louisiana, according to a person familiar with the matter.

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Plains All American moving to become next condensate exporter

HOUSTON (Bloomberg) -- Plains All American Pipeline LP says it should be on the list of companies that can export lightly processed oil from the U.S. The company has all the same assets in place that helped Pioneer Natural Resources Co. and Enterprise Products Partners LP get relief from 29-year-old crude export restrictions this year, Plains CEO Greg Armstrong said in a conference call with analysts.

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PTTEP signs PSC for Myanmar onshore block exploration rights

PTTEP signs PSC for Myanmar onshore block exploration rights BANGKOK, Thailand PTT Exploration and Production Public Company Limited, or PTTEP, reported that, on 8 August 2014, the consortium consisting of PTTEP South Asia Limited (PTTEP SA), a subsidiary of PTTEP,

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Lake Albert project holds 3Bbbl, Oil of DRCongo says

KINSHASA, Democratic Republic of Congo -- Oil of DRCongo, the Fleurette Group' s oil exploration subsidiary, has announced an update of the interpretation of the recently processed 3D seismic surveys acquired in 2013-14 over its prospects in Blocks I and II in Lake Albert in the Democratic Republic of Congo. The seismic campaign covered approximately 700 km offshore and 150 km onshore. Oil of DRCongo has now completed the interpretation of the seismic data. The analysis was undertaken by GeoTrace and Ecopetrol in conjunction with Sproule International, and it indicates around 3 Bbbl of oil in place.

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Chevron, Afren withdraw some staff from Kurdish oil operations

SAN RAMON, California (Bloomberg) -- Chevron Corp. and Afren Plc withdrew some staff from their operations in the Kurdish region of Iraq after Islamic militants rampaged across the country’s north. “We have reviewed the business critical expatriate positions and as a consequence made a reduction in the total numbers of expatriates in the region,” Chevron said in an emailed statement.

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Concho says Permian boom causing sand delivery delays

MIDLAND, Texas (Bloomberg) -- Concho Resources Inc. has faced delays of several hours to get sand for fracing in the Permian basin, as a drilling boom in West Texas has driven up demand and created logistical problems for delivering the material. Talk of a sand shortage is most prominent in the Delaware basin region of the play, Joe Wright, COO of the Midland, Texas-based company, said on its earnings conference call.

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Oman invites bids for five onshore, offshore blocks

MUSCAT, Oman -- Oman has invited explorers to bid for five blocks in its upcoming licensing round. The Sultanate’s Ministry of Oil and Gas (MOG) has opened up two offshore blocks -- 18 and 59 -- and three onshore blocks -- 43A, 54 and 58 – for bids.

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ConocoPhillips to study unconventional formations in Chile

HOUSTON (Bloomberg) -- ConocoPhillips agreed to study non-conventional oil and natural gas formations in southern Chile with state-owned energy company Empresa Nacional del Petroleo. Houston-based ConocoPhillips will carry out geophysical and geological studies of the Patagonian region where Enap produces the South American country’s only oil and gas, according to an emailed statement from Enap.

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Colorado activists drop fracing curbs in deal with lawmakers

DENVER, Colorado (Bloomberg) -- Colorado energy drilling backers and opponents, agreeing to avoid an election showdown over an industry worth $30 billion a year to the state, dropped rival measures to restrict fracing and punish towns that curb it. Activists dropped proposals limiting fracing by requiring that it take place 2,000 ft from any occupied building as pro-energy state lawmakers ended a separate bid to deny tax revenue to cities that impose moratoriums or bans. The deal came after Governor John Hickenlooper negotiated a compromise creating a task force to study the industry’s impact on communities.

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Colorado fracing opponents poised to lose local control battle

DENVER, Colorado (Bloomberg) -- Colorado’s compromise with drilling opponents has dealt a blow to environmentalists’ expanding battle to give local communities more control to limit fracing. Governor John Hickenlooper and Representative Jared Polis agreed to a deal that weakened the prospects for two proposed ballot initiatives aimed at restricting oil and gas activity, the two men said at a news conference in Denver.

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McClendon’s American Energy buys Utica, Marcellus acreage

OKLAHOMA CITY, Oklahoma -- Affiliates of Aubrey McClendon’s American Energy Partners, LP, have closed on acreage in the Utica and Marcellus shale plays.

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Colorado governor deal seeks to head off oil regulation vote

DENVER, Colorado (Bloomberg) -- Oil producers led by Noble Energy Inc. and Anadarko Petroleum Corp. rose as much as 9% after Colorado’s governor struck a deal that may avert a November vote on increasing regulation over the industry.

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CGG completes Avalon 3D seismic survey in Delaware basin

PARIS -- CGG has completed field acquisition of the 282 sq mi Avalon 3D seismic survey in Reeves and Loving Counties, Texas. Completed in 61 days, the high-end 400-fold broadband data establishes a new standard in high-end acquisition. Targeting the Bone Springs, Wolfcamp and Cline formations in one of North America’s most prolific basins, the newly acquired data is part of a CGG-proprietary solution that ties the geophysical data to the geology using a multi-disciplinary approach.

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Bakken fuels North Dakota’s oil production growth

WASHINGTON, D.C. -- North Dakota crude oil production surpassed 1.0 MMbpd in April and May. This record is the result of increasing crude oil production from the Williston basin' s Bakken and Three Forks formations in North Dakota and eastern Montana, according to the Energy Information Administration’s Today in Energy report.

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Gazprom Neft spuds exploration well in Kurdistan

MOSCOW -- Gazprom Neft has started drilling an exploration well at the Shakal block in Kurdistan and is soon to commence drilling a second exploration well. The project will study two oil reservoirs in the Shakal block, including flow testing. Well testing will be completed by late 2014/early 2015.

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Early Bakken bets position rail shippers for export rush

WALTHAM, Massachusetts (Bloomberg) -- When Eric Slifka landed in North Dakota’s Bakken shale field three years ago, he says he was overcome by “this feeling of a lot of growth. You could feel the pressure.” The fervor was so strong that Slifka, CEO of Global Partners LP in Waltham, Massachusetts, decided in that single trip to carry Bakken crude on railcars that his company had been using to haul ethanol to New York. His first full trains started a wave of deliveries that rescued East Coast refiners from the brink of closing amid the rising cost of oil imported from Africa and the North Sea.

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Geokinetics purchases CGG's North America seismic land contract acquisition business

Geokinetics purchases CGG' s North America seismic land contract acquisition business HOUSTON Geokinetics has signed a binding agreement with CGG for the purchase of CGG' s North American land seismic contract acquisition business. Through this agreement, CGG will contribute its North America

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Enbridge's second-quarter profit rises with crude transport

CALGARY, Alberta (Bloomberg) -- Enbridge said second-quarter profit surged on increased demand to move oil on its Seaway and regional pipeline networks. Net income rose to C$756 million ($691 million), or 91 cents a share, from C$42 million, or 5 cents, a year earlier, the Calgary-based company said in a statement.

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