North Dakota drilling and fracking activity stable as prices fluctuate, state regulator states
In a Tuesday monthly briefing, the state regulator revealed that despite recent volatility in oil prices, the number of frac crews and rigs in North Dakota remained unchanged in June. There are 32 rigs and 13 frac crews currently operating in North Dakota. Baker Hughes, an energy services company, said that the U.S. energy companies last week reduced oil and natural-gas rigs by eight for the week, the first drop since September 2023. North Dakota is third in the nation for oil production. The state Industrial Commission reported that its oil production fell by 22,000 barrels per day (bpd) in April to 1,172,000 BPD. Volatility is difficult for companies to plan.
Senate bill increases value of tax credits to use CO2 captured to produce more oil
The U.S. Senate committee proposed that the tax credit to capture carbon emissions when recovering oil be equal to the tax credit of $85/metric tonne for permanently burying these emissions underground. This would be a boon to oil and gas producers. In its draft bill, the finance committee, which is a key part of the Republican budget package, proposed a change to the 45Q tax credit. This was formerly part of 2022's Inflation Reduction act. The House of Representatives' version of the bill, which passed last month by one vote in that chamber, left the credit for enhanced recovery projects at 60/metric ton.
US cancels 24 clean-energy projects, including Exxon Baytown
Energy Department announced on Friday that the U.S. had canceled 24 awards totaling more than $3.7billion, including one to Exxon's refinery complex in Texas. The award was made during former president Joe Biden’s administration. Donald Trump's administration has announced that it is evaluating public-funded awards and loan programs issued to emerging technologies projects during Biden’s administration. The Trump administration is pursuing the maximization and expansion of oil and gas production, which has already reached record levels. It is also destroying large swathes of Biden’s climate and clean energy policies.
North Dakota regulators extend the time oil producers can drill wells without completion
North Dakota's Department of Mineral Resources announced on Thursday that it has extended the policy for how long producers may leave unfinished wells after drilling. This is expected to assist drillers in dealing with low oil prices. As U.S. crude oil prices dropped to $61 per barrel, the majority of companies have decided to delay completion and drop their rigs. This is because they are below the $65 average price that is required to make a profit. North Dakota producers must plug their wells after a year or put them into production to avoid abandonment. Operators will be able to extend their current policy until the spring of 2027.
Continental Resources, a US oil company, claims that Hess has defrauded them of $69 Million
Continental Resources, a U.S. producer of shale gas, has filed a suit against Hess Corp. The lawsuit alleges that the company was defrauded of up to $69,000,000 through a series deals conducted by Hess Corp. with its subsidiaries. Continental claimed that Hess - which operates hundreds wells in North Dakota - artificially inflated its midstream service fee by entering into agreements between itself and its subsidiaries. The lawsuit claimed that the net revenues from hydrocarbons produced by the wells in which Continental has a non-operating interest were below market value because of excessive service fees paid to Hess Midstream Partners.
North Dakota oil producers are planning to reduce rigs as a result of lower prices, a state regulator has said
The Department of Mineral Resources in North Dakota said Friday that oil and gas operators have stated they will be reducing rigs and crews in response to lower oil prices. This move is likely to affect output in the country's third largest oil producer. Prices have dropped below $65, which is the minimum price needed to break even. North Dakota's breakeven prices have traditionally been between $55 and $60 per barrel, according to Nathan Anderson, the director of the state regulator. Anderson stated that about four to five operators are planning to abandon rigs, either due to their business plans or low prices.
Targa Resources announces higher Q1 core profits on strength of North Dakota assets
Targa Resources, a pipeline operator, reported on Thursday a higher adjusted core profit for the first quarter. This was due to its Badlands operations located in North Dakota as well as the fact that higher NGL prices were offset by service fees and higher NGL volumes. Targa distributes natural gas and NGLs to key markets via its network of gathering assets and processing assets located across the U.S. These assets can be found in the Permian basin, Bakken Shale and Barnett Shale as well as Eagle Ford Shale. Badlands operations consist of approximately 500 miles crude oil gathering pipelines and 300 miles natural gas gathering pipes.
US refiners are unlikely to spend large amounts to process more domestic crude oil
It can be expensive and time-consuming to change refinery configuration. The margins and yields of refineries can be affected by using different types of crude. By Arathy S. Analysts and industry sources said that U.S. refiners do not plan to invest heavily to process more crude oil domestically and less oil imported from Canada and Mexico. This is a major obstacle to President Trump’s plan to increase oil production. Trump's pledge of unleashing U.S. production and lowering prices for consumers focused on increasing domestic drilling. Trump's tariff threats, however, have reduced imports of crude oil from Canada and Mexico.
US Supreme Court dismisses state climate lawsuits against oil companies
The U.S. Supreme Court on Monday rejected a bid from 19 Republican-led state led by Alabama, to stop five Democratic-led state from pursuing lawsuits against major oil companies for deceiving public about the role that fossil fuels played in climate change. The justices refused to hear a case filed directly at the Supreme Court by Republican attorneys general. This case targeted cases filed against Exxon Mobil and other companies such as Chevron, ConocoPhillips Shell, BP, Shell, ConocoPhillips. These lawsuits were brought by California, Connecticut Minnesota, New Jersey, and Rhode Island. The Supreme Court hears appeals from lower courts in almost all cases.
The US natgas price is rising due to concerns about Canada tariffs
U.S. Natural Gas Futures rose 10% on Tuesday to a 26 month high, on record flows into liquefied gas export plants. There was also concern that Canadian gas exports could be affected by the tariffs placed on Canada and Mexico by U.S. president Donald Trump. Canada provides about 8% total U.S. demand for gas, including exports. Some of these return to Canada. The U.S. will consume approximately 90.2 billion cubic foot per day (bcfd), and export another 21.1 bcfd as LNG or via pipelines in 2024 to Mexico, Canada and other countries. The majority of U.S. gas exports are to Mexico. In order to meet this demand, the U.S.
The US natgas price is rising due to concerns about Canada tariffs
U.S. Natural Gas Futures rose 10% on Tuesday to a 26 month high, on record flows into liquefied gas export plants. There was also concern that Canadian gas exports could be affected by the tariffs placed on Canada and Mexico by U.S. president Donald Trump. Canada provides about 8% total U.S. demand for gas, including exports. Some of these return to Canada. The U.S. will consume approximately 90.2 billion cubic foot per day (bcfd), and export another 21.1 bcfd as LNG or via pipelines in 2024 to Mexico, Canada and other countries. The majority of U.S. gas exports are to Mexico. In order to meet this demand, the U.S.
Senators introduce resolution to repeal Biden methane fees rule
The U.S. Senate Republicans introduced a resolution on Tuesday to overturn Biden's administration's proposed methane emission fee, which was one of the last measures taken by the former Environmental Protection Agency to force oil and gas companies to reduce emissions of this powerful greenhouse gas. The resolution, introduced by Republican Senators John Kennedy from Louisiana and John Hoeven from North Dakota under Congressional Review Act(CRA), allows Congress to overturn new federal rules by a simple majority. It would reverse the escalating charges set by the agency that they have called a "tax". The Americans want us to "drill baby drill" to reduce their energy costs.
Senate confirms Chris Wright, a fracking executive, as Trump's Energy Secretary
The U.S. Senate confirmed Chris Wright as President Donald Trump's Energy Secretary on Monday. Wright is a fracking executive. Seven Democrats and an Independent who caucuses alongside Democrats crossed the aisle. Wright, 60 years old, has been the CEO of Liberty Energy, since 2011. He announced that he would step down as soon as the confirmation was received. In a Liberty Energy report published last year, he wrote that he believed climate change caused by humans is real but its dangers are "distant" and "uncertain." He also stated that government policies to combat climate change are doomed to failure. Wright will oversee an agency with a budget of around $50 billion.
Senate Committee moves Trump's energy & interior nominees to the floor
The U.S. Senate Energy Committee approved Donald Trump's nominees for the U.S. Department of Interior and Energy. The U.S. Senate energy committee approved President Donald Trump's picks to lead the United States on Thursday.The panel approved former North Dakota Governor Doug Burgum as the U.S. Department of Interior's new director and for a national council on energy to be formed to increase oil and gas production.The committee also approved Chris Wright, Energy Department's choice and CEO of oilfield service company Liberty Energy.Next, the full Senate will consider the nominations. The Senate is currently controlled by Trump’s Republican Party.
Trump lifts the freeze on LNG export permits
The U.S. President Donald Trump ordered on Monday that the U.S. resume processing applications for export permits for new liquefied gas (LNG). This is part of his effort to increase U.S. energy production and to dismantle climate policies from his predecessor. The Republican executive order was expected and reverses the pause that Joe Biden, former president, had put in place for permits to be issued for new projects in early 2024. Biden, a Democrat from the United States, halted the approvals to allow U.S. National Laboratories to study the economic and environmental effects of the booming industry. The United States will be the largest LNG exporter in the world by 2023.
The demand for US natgas is expected to reach a record high on Tuesday
The U.S. demand for natural gas is expected to hit a record on Tuesday as the extreme cold that has affected much of America puts pressure on power grids, and certain oil and gas operations. Last week, the February natural gas contract reached its highest price since December 30, 2022. The cold weather that accompanied the weekend had the potential to reduce output due to the freezing of gas wells and pipelines. However, it also increased the use of fuel for heating homes and businesses. Prices rose in several hubs on the spot market with the U.S. Henry H Hub benchmark. In Louisiana, the price per MMBtu has more than doubled since Friday. It now stands at $9.86.
Trump's nominee for Interior Department says that boosting energy is key to US security
Doug Burgum, Donald Trump's nominee to lead the Interior Department said on Thursday that he would vigorously pursue President-elect Trump's goals to maximize energy production from U.S. Public Lands and Waters, calling it a key to national security. Burgum's remarks to lawmakers at his nomination hearing indicate a sharp change in policy. For years, President Joe Biden tried to limit oil-and-gas drilling by reducing federal leasing auctions and prohibiting future development in certain offshore waters in order to combat climate change. "America produces cleaner…
Trump's nominee for Interior supports drilling on federal land
Doug Burgum, the nominee for Secretary of Interior by Donald Trump, will tell Congress during his nomination hearing Thursday that he is committed to maximizing energy production on America's public land and waters. He will call this a key element of national security. The comments are a sign of a policy shift that is about to occur. President Joe Biden tried for years to limit oil and gas drilling in federal waters by reducing federal auctions and prohibiting future development. This was part of his strategy to combat climate change. "Today, America is producing energy cleaner…
Kinder Morgan will purchase a natgas gathering systems for $640 million
Kinder Morgan, a pipeline operator, said that its Hiland Partners unit has agreed to purchase a natural-gas gathering and processing system from Outrigger Energy II LLC in North Dakota for $640m. As U.S. oil production has increased, the oil and gas sector has seen a consolidation of operators. Persistent problems with permits for new pipelines also have made existing operators valuable. Kinder Morgan purchased NextEra Energy’s South Texas gas pipelines for $1.82 billion in 2023. Kinder Morgan's North Dakota purchase includes a processing facility capable of 270 million cubic foot per day (mmcfd)…
Next week, a US Senate panel will hold hearings about Trump's energy choices
Mike Lee, chairman of the Senate Energy Committee, announced on Thursday that nomination hearings will be held for Donald Trump's nominees to energy positions on Tuesday and/or Wednesday next week. On Tuesday, January 14th at 10:00 a.m. (14:00 GMT), the committee will hear Doug Burgum's nomination to be Secretary of Interior. Burgum served as the governor of North Dakota until last month, an oil-producing state. Burgum will also be expected to lead a National Energy Council that coordinates policies to increase U.S. production of energy. A day later, at the same time, the committee will conduct an hearing for Chris Wright. He is the nominee for Energy Secretary.
