The onshore rig count reversed and swelled 36 this week, the largest weekly increase since mid-2011. This brings the total to 670, sixty three (~10%) above the 607 a year ago. US shale drilling is coming back; production has increased 460,000 barrels per day, 5.4%, in the last six months after falling 600,000 barrels per day in the first half of last year.Read more
Cold weather/maintenance supporting gas pricing
The onshore rig count decreased 7 this week bringing the total down to 634, but still ten above the 624 a year ago. After ten straight weeks of adding onshore rigs, operators could be taking a breather and hoping that the OPEC production cut agreement will sustain and perhaps grow further recent price rises, providing better returns tomorrow. With a WTI price perhaps above US$55 being required to provide the cash flow for additional incremental rigs above today’s level, a key indicator to watch will be operators’ 2017 capital budget forecasts.
Meanwhile, the EIA raised their short term (Q1 17) gas forecast to US$3.65 amid continued volatility in the NYMEX strip.Read more
GCA's Rand Al-Obaidy will be giving a talk on the final day of the 2017 Egypt Petroleum Show (February 14-16, 2017).
Her subject is "Value Capture in the World Class Mature(ing) Egyptian Oil and Gas Province". You can read her abstract below.
To register for the event go to www.egyptpetroleumshow.com and hear it live.Read more
GCA is pleased and proud to have participated in the US Department of Energy’s Power Africa initiative.
The Energy Power initiative’s latest collaborative publication, “Understanding Natural Gas and LNG Options” was launched in Nairobi, Kenya in December, 2016. This is a detailed guide to developing gas resources in Africa, especially via LNG, and also emphasizes the increasing importance of LNG imports across the continent, with a focus on gas/LNG to power, with the wave of FSRU/FLNG type projects under consideration.
GCA’s Nicholas J. Fulford, Global Head of Gas & LNG was a key contributor to the book and is pleased it is now available to a wide audience of decision makers in this important arena.Read more
2017 brings with it both challenges and opportunities for the natural gas sector, which was summarized in December. In short, GCA expects that the global gas market, of which North America is now a fully paid up member, will be driven by three main factors this year which will significantly influence every gas related investment decision, whether it be drilling in the Haynesville or building a Methanol plant in Africa. These reflect the impact on prices of the current over-supply situation, the emergence of new thinking, players and opportunities in the LNG market (buyers and producers), and a spike in the conversion of older LNG carriers into regas (and power generating) units.
Onshore in the US, the rig count increased 6 this week bringing the total to 641, four above the 637 a year ago. This represents an average gain of 2% per week over the past ten weeks, a trend that should continue with WTI above US$50 per barrel.Read more
The onshore rig count increased 7; the seventh weekly gain in a row, bringing the total to 635, down by only 5% on the 672 of a year ago.Read more
The onshore rig count increased 13 again this week, bringing the total to 628, down less than 10% on the 676 a year ago.Read more
The onshore rig count increased 13 this week, bringing the total to 615, now down less than 10% on the 685 a year ago. Energy companies extended their recovery into an eight month this week as they continued to add rigs targeting oil as crude prices firmed above WTI US$50, albeit declining steadily across the week as the exuberance of a week ago waned a little. Drillers added 12 oil rigs; bring the total to 510 compared to 541 a year ago.Read more
gaffney-cline & associates