Will OPEC put the brakes on record oil output?
The Derrick Digest is a weekly collection of curated content, based on events from across the oil and gas industry, that caught our eye at Pennine Petroleum Corporation. We hope you find it just as interesting as we do.
NOV. 18, 2016
It all hinges on Vienna.
At least that’s the view of the International Energy Agency (IEA), in its latest monthly global oil market report.
With members of the Organization of Petroleum Exporting Countries (OPEC) set to meet in the Austrian capital at the end of November to discuss a proposed production cut in the neighborhood of 32.5 to 33 million barrels a day, oil prices may hang in the balance, says the IEA.
“Whatever the outcome, the Vienna meeting will have a major impact on the eventual—and oft-postponed—rebalancing of the oil market,” said the Paris-based IEA on Nov. 10. “If no agreement is reached ,and some individual members continue to expand their production, then the market will remain in surplus throughout the year, with little prospect of oil prices rising significantly higher.
“Indeed,” adds the IEA, “if the supply surplus persists in 2017, there must be some risk of prices falling back.”
The IEA expects non-OPEC production to grow at a rate of 500,000 bpd in 2017, in stark contrast to a 900,000-bpd decline in 2016. The IEA also reports that global oil supply rose by to 97.8 million bpd in October, caused by record OPEC output and rising production from non-OPEC nations such as Russia, Canada, Kazakhstan and Brazil.
OILPATCH MUST RISE TO THE TECH CHALLENGE, SAYS GRAY
Alberta’s oilpatch needs to rise to the challenge of disruptive technology.
That’s the view of longtime oilman Jim Gray, a co-founder of Canadian Hunter Exploration, who received the Canadian Petroleum Hall of Fame’s special Lifetime Achievement Award on Nov. 10 during the hall’s 20th anniversary celebration’s on the SAIT campus in Calgary.
The Alberta oilpatch needs “the energy and determination required to play the game as it’s going to be inevitably played in the next five, 10 or 15 years,” Gray told his audience, adding that current oil pricing “puts our eye back on the ball . . . and we are starting to respond.”
Eight inductees were ushered into the Hall of Fame this year.
WHAT THE DAKOTA ACCESS PROTESTERS AREN’T TELLING YOU
The truth about the Dakota Access Pipeline is out there somewhere. Just don’t expect it to come from the mouths of celebrities and professional activists.
According to insidesources.com, court documents reveal that Energy Transfer Partners—the company building the Dakota Access line, which has become the cause of curious protests far and wide—spent years working diligently with federal, state and local officialsto route the line safely and with the fewest possible disruptions.
Court documents reveal:
Energy Transfer held 559 meetings with communities and local officials to listen to concerns;
The U.S. Army Corps of Engineers held 389 meetings with 55 tribes, and was rebuffed repeatedly in 2014 by the Standing Rock Sioux while asking for input.
There’s one side of the story that’s being told in public. Read the other side here.
OILPATCH HIRINGS CONTINUE
A few weeks back, we made note of renewed hirings in the Canadian oilpatch. We’re glad to report that this isn’t a one-and-done.
A few weeks after Precision Drilling rehired 1,000 workers and reactivated 53 rigs across North America, Calgary’s Essential Energy Services says it can’t find enough staff to cover renewed activity in the field.
Essential added 30 percent more staff in recent months, according to Canadian Press reports.