TOPICS OF INTEREST
MANAGEMENT AND INFORMATION
GOM E&P Fieldwood Energy Files Chapter 11, Its Second Since 2018
The Gulf of Mexico E&P exited its first bankruptcy quickly with a strategy that included the acquisition of Noble Energy’s GOM assets, which increased its production volumes 25% when the WTI approached $80/bbl. Fieldwood’s financial woes in today’s economics may be tougher to overcome.
Cybersecurity: Preventing Infection in a Body of Data
The oil and gas industry is increasingly characterized by complex connectivity, but our digital dependency brings a new realm of cyber risks. Are we cyber-ready?
GE To Fully Divest From Baker Hughes
Just 3 years after its landmark merger, GE has announced that in the next 3 years it plans to sell of all its remaining shares in Baker Hughes.
BJ Services To Sell Assets as It Seeks Bankruptcy Protection
The legacy service provider operates in every major shale basin in the US and Canada. In court filings, it says it will seek additional funding to sell its equipment and wind down operations.
Chevron Scoops Up Noble Energy in $5-Billion Deal
Chevron strengthens its North American position with assets in the Permian, DJ, and Eagle Ford basins and offshore in Israel and West Africa.
AI Meets HMI: Next-Gen Robots Take on the Tough Tasks To Reduce Risks on Rigs
With their gee-whiz—albeit artificial—intelligence, robots may be the industry’s answer to jobs deemed dangerous, dirty, distant, or dull.
Shell Wipes Out Up To $22 Billion From Major Oil and Gas Projects
Two of the biggest assets to suffer from the new valuation are in Australia. Shell’s QGC venture and its floating liquified natural gas facility, Prelude, have been reduced in value by up to $9 billion.
Add Denbury to the List of Possible Bankruptcies
Denbury Resources needs enhanced debt reduction. The company that does enhanced oil recovery using carbon dioxide it produces and transports has skipped a payment to creditors while it seeks a deal that would reduce its debts.
Chesapeake Energy Files for Bankruptcy Protection
The distressed shale pioneer will wipe away nearly $7 billion in debt and is likely to make major asset sales as it attempts to restructure itself into a profitable business.
JV Strikes Blockbuster Infrastructure Deal With ADNOC
The $20.7-billion agreement is the single-largest energy infrastructure investment in the region.
Need Cost Cutting and Distancing? There’s a Technology for That
A test showing that it’s possible to automate the billing process for produced water hauling has opened the door for tracking a wide range of field activities. The industry downturn brought on by COVID-19 has motivated big companies to test practical applications sooner.
DJ Basin Producer Extraction Files for Bankruptcy Protection
The development marks the second-largest shale producer to file for Chapter 11 since the onset of the COVID-19 pandemic that sent crude prices reeling.
OTC 2020 Tech Papers Offer a Look Into the Future of Offshore
The Offshore Technology Conference was cancelled for the first time ever due to the COVID-19 pandemic. But the flow of ideas continues. As proof, this curated summary of technical papers highlights unique concepts that might someday reduce the offshore sector’s heavy cost burdens.
China’s Oil Demand Shows Signs of Recovery
Gasoline and diesel demand are set to increase YoY beginning in Q3 2020.
Leaders on Leaders: Advice on Surviving the Storm From SPE’s Top Volunteers
The reality is that those working in the oil and gas industry are facing the toughest challenges seen in a generation. Aside from higher prices, one of the only things that will make it easier is good leadership.
North American Contractions: Murphy Oil, Marathon Oil, and Halliburton
With US oil prices struggling to top $25, oil companies and service providers are making deeper cuts this month to cope. The biggest come from Halliburton which may have shed 5,000 total jobs since the start of the year.
KLX Energy Services To Merge with Quintana Energy Services
The merged companies will offer large-diameter coiled-tubing, directional drilling, snubbing, wireline services, and pressure pumping services.
Offshore Enters Uncharted Waters
For the offshore sector, the collapse in oil demand and prices came just as the market was beginning to look up. Now many companies are focused on survival. This article discusses how various market segments, regions, and companies are faring in “the new reality.”
Can Regulators Move Fast Enough To Fix a Shattered Market?
Texas Railroad commissioners recognize the battering Texas oil companies, and their workers, are taking, but will continue considering their options until 5 May.
Oilfield Service Giants Report Billions in Losses
Halliburton and Schlumberger write-off billions in asset value and signal that more job cuts are coming during the second quarter.
After a Close Look at Its Oilfield Business, Baker Hughes Working on Cost Cuts
The firm said it will be “restructuring” to “right size its operations” for a slowing market without mentioning how that will affect its workforce. It also says its two major lines of business are worth less than previously estimated.
Upstream Digitalization Is Proving Itself in the Real World
For the upstream industry, where improvement in efficiency or production can drive significant financial results, there is no question that the size of the digital prize is huge. So are the challenges.
Russian Government Buys Venezuelan Assets From Its Own Oil Company
US sanctions appear to have prompted a change in ownership. It is unclear how the new arrangement will impact Venezuela’s diminishing ability to export crude oil.
Halliburton Issues Mandatory Furloughs at Headquarters
The world’s second-largest service firm has seen its share price tumble by 75% as a result of the COVID-19 pandemic and a brutal price war. Workers at Halliburton’s main campus are among the first to feel the impacts.
Facts and Figures: US To Fill Strategic Petroleum Reserves Amid Historic Price War
In its first response to the Russia-Saudi Arabia price war, the US government will purchase up to 78 million bbl of crude to protect domestic producers.
Coronavirus Outbreak Impacting Crude Demand Forecasts
Wood Mackenzie expects the ongoing outbreak and disruption to the world’s second largest economy to be a one-off event, yet it could remove at least 500,000 B/D of crude demand in the short term.
Schlumberger, Halliburton Downsize Fracturing Services Amid Shale Sector’s “Biggest Test”
The two oilfield service leaders serve as critical bellwethers for the health of North America’s upstream sector, which is under pressure to consolidate and generate free cash flow.
Report: BP Pulling Out of Iraq Field
The withdrawal comes at a time of increasing tension between the US and Iraq, which makes investment in the country riskier.
US Shale: All Signs Point to Further Consolidation
As capital markets dry up and shale producers look for pathways to growth, oil and gas data analytics firm Enverus predicts the US sector will see a “surge” in mergers and acquisitions in 2020.
SPE Technical Directors’ Outlook: Tearing Down the Walls Among Disciplines
Merging new knowledge and technological capabilities among the disciplines—and beyond—will be crucial to sustaining the industry for the long term.
Berry to Succeed Shale Pioneer Hamm as CEO of Continental Resources
Hamm, who has served as CEO since founding Continental in 1967, will become executive chairman effective 1 January.
Chevron Sets 2020 Upstream Budget, Writes Down At Least $10 Billion
The US major will keep its overall budget flat for a third straight year, but the expectation of lower oil and gas prices long-term will result in tax impairment charges of $10 billion–$11 billion. More than half of those charges will come from its Appalachia Shale gas assets.
SPE Talks To: Yogashri Pradhan
In this episode, we discuss how to market yourself and grow your career.
SPE Talks To: Shauna Noonan—Strengthening Ways To Disseminate Knowledge
Each month, Shauna joins The SPE Podcast to discuss her President's Column and to share her SPE journey. We'll end each of these podcasts asking the audience an interactive question.
Wallace Appointed CEO of Israel’s Delek Group
The succession at the top role comes amid the independent’s expansion beyond the Eastern Med, with recent acquisitions of North Sea and US Gulf of Mexico assets.
Another View: The Innovation Path to Deployment
Many confuse “an” innovation model for “the” innovation model, and we have confounded innovators with entrepreneurs. They are not the same thing.
SPE Talks To: Kirstie Boyle
Business Development VP Kirstie Boyle joins The SPE Podcast to talk startups. Recently part of a $4.5-million funding round, Kirstie shares what makes Interface Fluidics flow.
Saudi Aramco IPO is a Go, Expected to Be Largest in History
The world’s most profitable company will be listed on a domestic exchange next month. The final valuation of the company is yet to be determined.
US Could Make Hundreds of Millions More from Offshore Leasing, GAO Says
GAO believes BOEM often undervalues its tracts offered to operators in offshore lease sales.
ADNOC, Russia Advance Oil and Gas Partnerships
Separate collaboration agreements between ADNOC and Lukoil, Gazprom Neft, and the Russian Energy Agency cover all segments of the oil and gas industry, including upstream technology and exploration and development of Abu Dhabi concessions.
Testing a System Where Machines Decide How Much to Pay a Trucker, and Send a Check
Ten big names in the oil and gas business created a group to try out ways to use blockchain in the oil business, and test if the record keeping and automatic data collection software can track water shipments more efficiently.
Chevron, Schlumberger, Microsoft Team To Improve Digital, Petrotechnical Work Flows
The combination of digital technologies will enable Chevron—and, eventually, other companies—to process, visualize, interpret, and glean insights from multiple data sources, the companies said.
Is Service Sector Headed for Recession?
Still recovering from the oil price downturn, oilfield service companies are facing more headwinds.
Schlumberger CEO Outlines New Vision for Company
In his first public appearance, Schlumberger’s new CEO said the company would focus on digitalization and restructure some operations.
IPO Leads to Leadership Change at Saudi Aramco
The move to split oversight of Aramco from the Energy Ministry ends decades of tradition but is designed to avoid conflicts of interest ahead of what could be the largest IPO in history.
The Cloud Offers Opportunity for Oil and Gas Cybersecurity
The author argues that the advent of cloud technology should not be regarded as a further challenge to security but an opportunity to revitalize and improve a company’s defenses dramatically.
E&P Growth Shifts Offshore and Globally But More Cost and Job Cuts On the Way
A comeback in offshore and international exploration and production is making up for the North American slowdown, but it is a difficult transition.
Whiting Petroleum Slashes Workforce By a Third
The Bakken and Niobrara operator will eliminate 254 jobs in an effort “to better align [its] business with the current operating environment.”
Petrobras to Sell Shallow-Water Campos, Santos Basin Fields
UK operator Trident Energy is entering Brazil while Australian firm Karoon Energy is expanding its position in the country. Both will try to boost output from already-producing assets.
Oilfield Flares Provide a Glaring Reminder of the Drive To Produce More Oil
Oilfield flares are a bright indicator of rapidly rising oil production that exceeds pipeline capacity. And it raises the question: Why are oil companies in such a hurry?
Brazil Focuses on Cost Control in Deep Water
Petrobras says it can produce oil for a lower break-even price than onshore shale plays, including the Permian Basin. Brazil’s offshore sector has cut the cost of deepwater production but comparisons based on break-even prices are slippery.
Industry Dives into UK’s New Oil and Gas Data Hub
Some 3,000 people and counting intrigued by UK oil and gas data have signed up for access to the country’s new National Data Repository. What motivated the OGA to make the data available to the public, and what can the public do with the data?
UK Releases 130 Terabytes of Oil and Gas Data
Data from the UK Oil and Gas Authority’s new data repository cover 12,500 offshore wellbores, 5,000 seismic surveys, and 3,000 pipelines.
Global Oilfield Services Market Won’t Recover Until 2025
The financial effects of the downturn are set to last at least a decade—which puts the industry almost at the halfway point. This is according to a new report that says the FPSO market is the most “unscathed” of all the service segments.
Change in Energy Sector is So Extreme Oil Companies May Need to Share Data
Oil companies generate an enormous amount of data but are reluctant to share it. But more sharing of information may be required in the future to keep up with a rapidly changing energy landscape.
How Oil Innovation Has Benefited Other Industries
Technology transfer in the oil business is too often discussed from a lens of bringing in outside innovations. But what happens when innovation escapes the industry’s orbit and finds a new home?
Chesapeake Teams With Analytics Firm To Improve Asset Performance
The Oklahoma City independent has a new-look portfolio and new operational and financial priorities. And now it has enlisted an energy research firm to leverage advanced analytics and machine learning to help get the most out of its assets.
US Shale To Drill And Complete 20,000 Wells This Year
A new report expects US producers to drill their highest number of wells since 2014, and that completion activity may exceed drilling for the first time since 2016.
US On Track To Be Net-Exporter Of Crude and Petroleum Products
A new report predicts that US output will rise to a new record high of 12.1 million B/D in 2020.
Big Year for Shale M&A May End with Shell and Endeavor
2018 has seen a wave of shale deals that are consolidating the landscape. While this one could be among the biggest, it is not yet final.
How Close Is Too Close? Well Spacing Decisions Come With Risks
The ideal well spacing is in the eye of the beholder. The decision depends on so many factors that machine learning is now trying to determine the best combination of ingredients.
Life is Complicated and Uncertain: Why Not Just Focus on Drilling Faster?
Predicting the trajectory of a satellite, or a well, requires sophisticated analysis to reduce the huge uncertainties. That adds to the many things drillers should be thinking about, which can be overwhelming.
Upstream Data Can Be “a Rat’s Nest of a Mess”
Companies such as Google, Schlumberger, Shell, and Encana are working to turn the industry’s rat’s nest of data into a goldmine of insight, analysis, and technology.
WATCH: 2018 ATCE Opening Session
These days, it is all about digital. Click to find out what industry leaders from Encana, Google, Schlumberger, and Shell have to say about the ongoing transformation towards data-driven profitability.
Can Putting Blockchain on Drilling Rigs Really Get Everyone on the Same Screen?
Having blockchain on an oil rig means everyone on the job shares a view of a project from start to finish. This could facilitate innovations that cut costs, but organizational change is required.
Innovation Leaders to Meet in Scotland at SPE ENGenious Event
A new event is kicking off in September that will bring together the brightest minds in digital tech and oil and gas.
Find Out What Google and Oil and Gas Companies Are Searching for in Big Data at 2018 ATCE
The company behind the world’s most popular search engine is trying to click with the upstream business at the most distinguished technical event of the year.
Equinor Invests in Two Gas-Focused Tech Startups
Venture groups spend their time evaluating hundreds of companies each year to only make a handful of investments. These two cover interesting ends of the upstream spectrum: aerial drones and downhole artificial lift.
Fed Reserve Bank: Higher Oil Price Needed To Increase Drilling Operations
Energy activity has shown solid expansion, but to increase drilling, companies need a higher average oil price compared to last year’s surveys, reflecting a steady increase since 2Q and 4Q in 2017. The ability to find workers and limited pipeline capacity could limit near-term growth.
What’s Driving Oil Companies to Buy Electric Car Charging Firms?
Some of the industry's largest players are now fueling the electrification revolution, and it is only the beginning.
Equinor Releases Subsurface and Production Data From NCS Field
The Norwegian operator’s disclosure marks the first time all subsurface and production data from a field on the NCS will be available for public viewing.
Equinor’s Offshore Bonanza Continues
Equinor has grabbed seven new licenses in the Barents and Norwegian Seas, the latest in a flurry of offshore activity in which the firm has added acreage off the UK and Brazil, gained approval for a big Arctic project, and awarded billions of dollars in service contracts.
The Big Unknowns for World’s Balancing Act of Supply and Demand
Prices are up, and so is production. But a new report from BP raises important questions as to how the biggest producers will respond to shifting dynamics.
AR Headsets Give Oil and Gas Sector the Quicker Fix
Wearable computers are turning heads in the oil and gas industry and appear to be on a trajectory for widespread adoption.
Saudi Aramco, Halliburton Sign Landmark Deal
Saudi Aramco is tapping Halliburton’s expertise in developing unconventional resources to increase domestic gas production, a pillar of its long-term strategy.
How ConocoPhillips Solved its Big Data Problem
Unconventional operators are finally beginning to use to their advantage the nearly endless stream of data they’ve collected over the years. ConocoPhillips explains how it has seen real improvements in its operations by removing data friction and opening up access across typical work silos.
DeepStar Accomplishments in Continued-Service Realm
Offshore operators must grapple with ways to keep aging floating facilities on station beyond their original design life.
Another View: People Strategies Need To Keep Up With Rapid Digitalization
The world is digitalizing all around us. Within the energy sector, the lower-price environment since 2014 has increased the pace of change and the scope of digital integration. But, are you bringing your people strategy along?
How is Industry Finding the Next Generation of New Technologies?
The process of finding, developing, and testing new technology can be as complicated as the technology itself—especially at a time when operators have little tolerance for risk.
Statoil, ABB Among Companies Pushing Integrated Operations Initiatives
Statoil’s integrated operations center on the Norwegian continental shelf is one of several initiatives operators and service companies have set in motion to improve condition monitoring and maximize production on their assets.
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04 August 2020