US O&G Production

[WapPride]

Oil market caught by surprise as US output surges

Record supply from world’s top producer complicates Opec+ maths and White House climate push

www.ft.com

US oil production will keep booming in 2024, setting up a possible showdown with Saudi Arabia

US oil companies are boosting their budgets, and production forecasts indicate new record highs in output next year.

finance.yahoo.com

This is tremendous news for everyone, not just in the US, but across the globe. US fracking technology has increased tremendously over the years, and if this keeps up we will be able to counter the OPEC+ cartel's stranglehold on the market. This coupled with LNG and RNG booming, and them being easily replicable in the US, is a great sign for future US energy independence and growth.

There's also tons of R&D being pushed by O&G companies in Louisiana/southern Arkansas regarding extracting lithium from drill cuttings and wastewater generated at drilling wells. This could also be a great boon for the future of US O&G production, but it's still a ways out.

 

[nytigerfan]

Oil market caught by surprise as US output surges

Record supply from world’s top producer complicates Opec+ maths and White House climate push

www.ft.com

US oil production will keep booming in 2024, setting up a possible showdown with Saudi Arabia

US oil companies are boosting their budgets, and production forecasts indicate new record highs in output next year.

finance.yahoo.com

This is tremendous news for everyone, not just in the US, but across the globe. US fracking technology has increased tremendously over the years, and if this keeps up we will be able to counter the OPEC+ cartel's stranglehold on the market. This coupled with LNG and RNG booming, and them being easily replicable in the US, is a great sign for future US energy independence and growth.

There's also tons of R&D being pushed by O&G companies in Louisiana/southern Arkansas regarding extracting lithium from drill cuttings and wastewater generated at drilling wells. This could also be a great boon for the future of US O&G production, but it's still a ways out.

This cannot be true. If I have learned anything from @jakefest - who is a ceo of a massive investment firm - it is that biden has destroyed the US energy sector with his policies.

I saw that arkansas discovered a massive lithium deposit a few weeks ago. I thought it was hilarious that after years of pubicly blaming biden's EV policy for high gas prices, that sarah huckabee sanders gave a speech saying that we need to embrace EV's, so that in the future when something like the war in Ukraine drives up gas prices, we will not be so oil dependent.

A lot of people in arkansas changing their tune now. I guess arky will win a natty in the future with so much lithium backed NIL money pouring in.

 

[jakefest]

This cannot be true. If I have learned anything from @jakefest - who is a ceo of a massive investment firm - it is that biden has destroyed the US energy sector with his policies.

I saw that arkansas discovered a massive lithium deposit a few weeks ago. I thought it was hilarious that after years of pubicly blaming biden's EV policy for high gas prices, that sarah huckabee sanders gave a speech saying that we need to embrace EV's, so that in the future when something like the war in Ukraine drives up gas prices, we will not be so oil dependent.

A lot of people in arkansas changing their tune now. I guess arky will win a natty in the future with so much lithium backed NIL money pouring in.

Great news that we are roughly back to where we were in 2019 (12.3m a day to 12.9 expected before EOY). Looks likely to be short lived though, especially given that multiple states are enforcing a switch to EV's. Hope Arkansas has an endless supply, going to need it once they force everyone to move to an electric vehicle.

Also, I was told by an oil expert on here that our issue isn't pumping oil, it's refining it. Did we build more refineries? Let us know when gas prices come down.

However, Biden administration policies are still important for the industry, according to observers. They are not providing enough certainty for the industry to continue producing at high levels in the longer term, said Meyer with API. The organization has released statements saying that changes to federal environmental review processes, pending oil and gas lease sales on federal land, and agencies’ rulemaking on the Inflation Reduction Act have made companies in the sector weary.

“We need long-term certainty to make these investments,” he said. “And right now, we just don’t have that.”

Regardless, Meyer said, policy decisions being made today affect fossil fuel companies’ decisions on whether and how many new wells to drill — decisions that could be felt at the pump months or years down the line.

“Bad policies on the energy side really lay the seeds for deeper problems down the road,” he said.

 

[fatpiggy]

This isn’t news. We have had the capability to be energy independent for many years

Trump had gas prices down to $1.80

BIden will bring them down for the election and then right after we will all be putting those stickers on the gas pump again

 

[yoshi121374]

This isn’t news. We have had the capability to be energy independent for many years

Trump had gas prices down to $1.80

BIden will bring them down for the election and then right after we will all be putting those stickers on the gas pump again

And here is another of those statements you make that show how clueless you are.

 

[DW4_2016]

This isn’t news. We have had the capability to be energy independent for many years

Trump had gas prices down to $1.80

BIden will bring them down for the election and then right after we will all be putting those stickers on the gas pump again

Giving credit for accomplishments half way through. Perfect example of your delusion.

 

[nytigerfan]

This isn’t news. We have had the capability to be energy independent for many years

Trump had gas prices down to $1.80

BIden will bring them down for the election and then right after we will all be putting those stickers on the gas pump again

Low gas prices were likely the only positive benefit of trumps disastrous decision to shut down the country and the economy. That will go down as one of the worst presidential decisions in American history. #trumpshutdown

 

[fatpiggy]

Low gas prices were likely the only positive benefit of trumps disastrous decision to shut down the country and the economy. That will go down as one of the worst presidential decisions in American history. #trumpshutdown

Good morning friend. Did Trump shut things down or did the Govenors?

 

[nytigerfan]

Good morning friend. Did Trump shut things down or did the Govenors?

the goveners did, after trump told them to. you don't remember? he even scolded brian kemp for reopening too soon.

"I told the governor of Georgia, Brian Kemp, that I disagree strongly with his decision to open certain facilities," Trump said at his daily coronavirus briefing Wednesday.

 

[dpic73]

This isn’t news. We have had the capability to be energy independent for many years

Trump had gas prices down to $1.80

BIden will bring them down for the election and then right after we will all be putting those stickers on the gas pump again

Funny how you gave Trump a pass for 6.7% unemployment when he left office but he gets credit for low gas prices at the same time. 🤔

 

[scotchtiger]

Oil market caught by surprise as US output surges

Record supply from world’s top producer complicates Opec+ maths and White House climate push

www.ft.com

US oil production will keep booming in 2024, setting up a possible showdown with Saudi Arabia

US oil companies are boosting their budgets, and production forecasts indicate new record highs in output next year.

finance.yahoo.com

This is tremendous news for everyone, not just in the US, but across the globe. US fracking technology has increased tremendously over the years, and if this keeps up we will be able to counter the OPEC+ cartel's stranglehold on the market. This coupled with LNG and RNG booming, and them being easily replicable in the US, is a great sign for future US energy independence and growth.

There's also tons of R&D being pushed by O&G companies in Louisiana/southern Arkansas regarding extracting lithium from drill cuttings and wastewater generated at drilling wells. This could also be a great boon for the future of US O&G production, but it's still a ways out.

I've seen you post before on the differences in the crude generated from fracking vs. what we import and how our refineries are set up for the latter. Have they begun fixing that issue? Genuinely curious.

 

[WapPride]

Great news that we are roughly back to where we were in 2019 (12.3m a day to 12.9 expected before EOY). Looks likely to be short lived though, especially given that multiple states are enforcing a switch to EV's. Hope Arkansas has an endless supply, going to need it once they force everyone to move to an electric vehicle.

Also, I was told by an oil expert on here that our issue isn't pumping oil, it's refining it. Did we build more refineries? Let us know when gas prices come down.

However, Biden administration policies are still important for the industry, according to observers. They are not providing enough certainty for the industry to continue producing at high levels in the longer term, said Meyer with API. The organization has released statements saying that changes to federal environmental review processes, pending oil and gas lease sales on federal land, and agencies’ rulemaking on the Inflation Reduction Act have made companies in the sector weary.

“We need long-term certainty to make these investments,” he said. “And right now, we just don’t have that.”

Regardless, Meyer said, policy decisions being made today affect fossil fuel companies’ decisions on whether and how many new wells to drill — decisions that could be felt at the pump months or years down the line.

“Bad policies on the energy side really lay the seeds for deeper problems down the road,” he said.

I should've known this thread was going to devolve into a political shitfest.

We do need more refining capacity considering there's no refinery in the US operating under 95% efficiency currently. However, we can still pump additional volume and export it to other countries with light crude refining capabilities (which is what we're doing.)

Blaming or praising the president for whatever is going on in the O&G market is a waste of time. The US is doing a fantastic job in production this year, especially since we account for 80% of the global increase in production this year.

 

[fatpiggy]

I should've known this thread was going to devolve into a political shitfest.

We do need more refining capacity considering there's no refinery in the US operating under 95% efficiency currently. However, we can still pump additional volume and export it to other countries with light crude refining capabilities (which is what we're doing.)

Blaming or praising the president for whatever is going on in the O&G market is a waste of time. The US is doing a fantastic job in production this year, especially since we account for 80% of the global increase in production this year.

Is this the same / similar to what the "crack spread" describes?

 

[WapPride]

I've seen you post before on the differences in the crude generated from fracking vs. what we import and how our refineries are set up for the latter. Have they begun fixing that issue? Genuinely curious.

They've mainly started increasing capacity at currently existing refineries, as that's more cost effective than building entirely new ones. Exxon's Beaumont, TX facility started expansion earlier this year to double their current capacity (which is the equivalent of building a new mid-sized refinery), and their Galveston, TX plant just increased by 250k bpd capacity. There's been about 10 other expansions over the last 10 years from smaller plants, but those are the biggest ones over the last 3 years.

I don't really expect to see another big refinery to ever be built in the US, mainly because there's no real reason to do it. We maintain energy independence by trading our light crude for heavy crude generated in SA and across the Atlantic. The vast majority of the chemical plants located in the US utilize heavy crude refined products, and if we ever did something to disrupt that market it would cause a major issue. They're the ones creating all the products used in polymers, asphalt, and petrochemicals which all the plants in the Gulf region rely on.

 

[WapPride]

Is this the same / similar to what the "crack spread" describes?

Crack/spread is just a way to describe the price margins for trading between the various products refined from heavy crude. Traders use it to try and determine what oil producers will be doing in the future based on the margin determined from the crack/spread. If the margin is tight between the price of a barrel of heavy crude, and the current futures rate for gasoline/diesel/whatever they're trading, then that is usually seen as an indicator that suppliers will be cutting production.

 

[TigerGrowls]

 

[TigerGrowls]

This makes sense to me more than the idea of fossil fuel theory.

 

[pharout73]

Oil / Nat Gas are so much more complex than people think. Headlines try to make something complex simple, here are some facts.

• Oil is fungible so sanctions never work
• Our independence is based solely on our coal exports ( yes they include them) which offset our oil imports
• We do not have enough refining capacity and need to stop NIMBY thinking
• We depend on Canada for a high percentage of our imports
• Gas prices always go up this time of year (Late winter / spring) as refiners begin maintenance and Summer blend changeover
• Our refining assets are a bad match with the crude we get out of the ground thus we import oil and export gasoline etc.
• Much of our increased "oil" comes from NGL's which are related to our nat gas field development
• We will be using fossil fuels for many decades to come and in increasing amounts (worldwide) as energy is the major determiner of higher standards of living
• Mineral production (e.g. lithium / rare earths) in the US will never meet our needs as environmental groups will stop it by delaying and making capital allocation difficult due to risk
• We will need more pipelines not less as nat gas is the winner and pipelines are the only real way to transport
• Wind and Solar will never make a material impact as the associated costs and fact that they cannot be base load sources will become more and more apparent
• Our electric power demand is set to explode due to blockchain along with AI / cloud demands

Hope it makes you think.

 

[WapPride]

Oil / Nat Gas are so much more complex than people think. Headlines try to make something complex simple, here are some facts.

• Oil is fungible so sanctions never work
• Our independence is based solely on our coal exports ( yes they include them) which offset our oil imports
• We do not have enough refining capacity and need to stop NIMBY thinking
• We depend on Canada for a high percentage of our imports
• Gas prices always go up this time of year (Late winter / spring) as refiners begin maintenance and Summer blend changeover
• Our refining assets are a bad match with the crude we get out of the ground thus we import oil and export gasoline etc.
• Much of our increased "oil" comes from NGL's which are related to our nat gas field development
• We will be using fossil fuels for many decades to come and in increasing amounts (worldwide) as energy is the major determiner of higher standards of living
• Mineral production (e.g. lithium / rare earths) in the US will never meet our needs as environmental groups will stop it by delaying and making capital allocation difficult due to risk
• We will need more pipelines not less as nat gas is the winner and pipelines are the only real way to transport
• Wind and Solar will never make a material impact as the associated costs and fact that they cannot be base load sources will become more and more apparent
• Our electric power demand is set to explode due to blockchain along with AI / cloud demands

Hope it makes you think.

1. Sanctions absolutely do work, and the fungibility of oil is still up for debate. The oil market definitely isn't a "free market", so on that front i would agree with this line of thinking.
2. It's not solely on coal exports, though it absolutely does have an effect. Especially with the Biden administration leveraging US coal contracts in the ME with US Navy protection in the Red and Arab seas.
3. Agreed, we need more refining capability, as well as upgrades to current plants to improve the efficiency of refining the light crude we produce domestically.
4. Agreed again.
5. Agreed again.
6. Agreed again.
7. Agreed again.
8. Agreed again. We need to open up in roads with SA (specifically Argentina, Brazil, Chili, Venezuela) about their REM deposits. They are the nearest countries to the US with the largest deposits yet to be mined.
9. Agreed, but due to the low NG prices we're currently dealing with there's a lot of halts on NG pad development. One of my biggest clients had budgeted 30 pads to be installed in 2024 based on 2023 numbers, but once January came around that number dropped to 8 pads due to the current price of NG.
10. Agreed, but they are a tremendous supplemental source of energy. The last ~3 weeks in Texas we've experienced a tremendous boon from renewable energy output, but yeah it'll never be enough to fully support US needs.
11. A lot of thew new data centers being erected across the country have supplemental solar farms being developed alongside them, which should help, but it won't cover all the needs of the facilities. I am excited to see how the new Hybar steel mill in Arkansas manages since they're using 100% solar power/renewable energy to power their boilers.

 

[pharout73]

1. See Iran and Russian sanctions.. Energy always finds a willing buyer at a reduced price. I think the real potential for sanctions working are in the area of tech and drilling at which the US excels but price caps etc have little effect.
.
9. See Chesapeake and EQT throttling back. I think the LNG export terminals in Mexico might help that but it will take a while.

10. Eagles are hoping for less wind....

11. Going to need some real big batteries for those cloudy days. I love the solar far in Michigan , a state that has the lowest number of days potential for generation ( clouds and snow) . Our focus ought to be on more nat gas generation and moving along small nuclear reactors.

Thanks for the solid comments

 

[WapPride]

1. See Iran and Russian sanctions.. Energy always finds a willing buyer at a reduced price. I think the real potential for sanctions working are in the area of tech and drilling at which the US excels but price caps etc have little effect.
.
9. See Chesapeake and EQT throttling back. I think the LNG export terminals in Mexico might help that but it will take a while.

10. Eagles are hoping for less wind....

11. Going to need some real big batteries for those cloudy days. I love the solar far in Michigan , a state that has the lowest number of days potential for generation ( clouds and snow) . Our focus ought to be on more nat gas generation and moving along small nuclear reactors.

Thanks for the solid comments

Yeah, I was expecting much more from the Russian and Iran sanctions; calling them underwhelming would be an understatement. Agreed wholeheartedly with the rest of this.

Chesapeake is going through a merger right now which has delayed production, but yeah I don't expect anything in the near term.

Agreed 100% w/ the rest. The nuclear scare of the 70s and onward was such a giant ****up. i think @southerncaltiger is in that industry - iirc he's had a ton of really knowledgeable posts about nuclear energy in the states.

I appreciate your comments too; it's refreshing hearing from someone else familiar in the field. Hoping you stick around bc i appreciate your commentary. 🍻

 

[southerncaltiger]

Yeah, I was expecting much more from the Russian and Iran sanctions; calling them underwhelming would be an understatement. Agreed wholeheartedly with the rest of this.

Chesapeake is going through a merger right now which has delayed production, but yeah I don't expect anything in the near term.

Agreed 100% w/ the rest. The nuclear scare of the 70s and onward was such a giant ****up. i think @southerncaltiger is in that industry - iirc he's had a ton of really knowledgeable posts about nuclear energy in the states.

I appreciate your comments too; it's refreshing hearing from someone else familiar in the field. Hoping you stick around bc i appreciate your commentary. 🍻

Thanks for the kind words & tag…as of last Friday “formerly worked in that industry” 🤣🤣

Sitting on the tailgate of my Tundra drinking a cold beer here in my driveway. I think that I’m going to like this retirement gig.

 

[pharout73]

Yeah, I was expecting much more from the Russian and Iran sanctions; calling them underwhelming would be an understatement. Agreed wholeheartedly with the rest of this.

Chesapeake is going through a merger right now which has delayed production, but yeah I don't expect anything in the near term.

Agreed 100% w/ the rest. The nuclear scare of the 70s and onward was such a giant ****up. i think @southerncaltiger is in that industry - iirc he's had a ton of really knowledgeable posts about nuclear energy in the states.

I appreciate your comments too; it's refreshing hearing from someone else familiar in the field. Hoping you stick around bc i appreciate your commentary. 🍻

Back at you....

 

[pharout73]

U.S. energy firm CNX Resources said on Tuesday it expects lower production volumes in 2024 as it is delaying some well completion activities amid weak natural gas prices. https://nasdaq.com/articles/cnx-res...duction-activities-expects-decline-in-volumes

Low Prices fix low prices just as high prices fix high prices...

 

[hopefultiger13]

Great news that we are roughly back to where we were in 2019 (12.3m a day to 12.9 expected before EOY). Looks likely to be short lived though, especially given that multiple states are enforcing a switch to EV's. Hope Arkansas has an endless supply, going to need it once they force everyone to move to an electric vehicle.

Also, I was told by an oil expert on here that our issue isn't pumping oil, it's refining it. Did we build more refineries? Let us know when gas prices come down.

However, Biden administration policies are still important for the industry, according to observers. They are not providing enough certainty for the industry to continue producing at high levels in the longer term, said Meyer with API. The organization has released statements saying that changes to federal environmental review processes, pending oil and gas lease sales on federal land, and agencies’ rulemaking on the Inflation Reduction Act have made companies in the sector weary.

“We need long-term certainty to make these investments,” he said. “And right now, we just don’t have that.”

Regardless, Meyer said, policy decisions being made today affect fossil fuel companies’ decisions on whether and how many new wells to drill — decisions that could be felt at the pump months or years down the line.

“Bad policies on the energy side really lay the seeds for deeper problems down the road,” he said.

This is a really clever post.

I LOVE IT that you posted that production is "Roughly where we were in 2019". I guess so, except that it's the HIGHEST US production has ever been by over half a million barrels a day.

As for the refineries remark... If you listen closely, you'll hear the sound of the goal posts being moved. I wonder how many refineries Trump built? Hint: The same number as Biden, yet you have been bragging on Trump's domestic production.

 

[pharout73]

This is a really clever post.

I LOVE IT that you posted that production is "Roughly where we were in 2019". I guess so, except that it's the HIGHEST US production has ever been by over half a million barrels a day.

As for the refineries remark... If you listen closely, you'll hear the sound of the goal posts being moved. I wonder how many refineries Trump built? Hint: The same number as Biden, yet you have been bragging on Trump's domestic production.

Why is this political? Both political parties are filled with people who don't get it.

As far as production goes we need more so that we are not dependent on Canada and can continue to export to Mexico. The best policy will be a North American production surplus. This allows resources from Canada and labor in Mexico. NGL's have been the marginal add and have put us over prior levels.

What we really need is to build FT (coal to diesel) or GTL (Gas to Liquids) allowing us to better flex our resource mix.

As far as refiners go the difference is that the pandemic made and environmental policies along with some idiots at the State level have lead to the closures of 5+ small refineries. Each has its own story so this is not a blanket statement. The large refiners have slowed expansion due to the anti-energy tilt in the administration making permitting and the cost of capital more of a question.

The contempt for energy is no more clearly shown in the pause for a reevaluation / review of LNG export permits, which by the way had already been approved, This type of political BS is what makes investment of capital risky. Stop playing politics and bowing to the environmental fringe.

Some of the changes in taxes ( they always seem to go up) on gasoline have also resulted in price increases.

 

[pharout73]

Todays headlines ....Total US oil inventories are at decade+ lows....

 

[pharout73]

Well, Well.... ( a little pun there). Oil making solid moves.

Moves from oil producers to hold back and make sure they are supplied making a few waves in the market.

SPR still unfilled. Now we are at prices that are at / above some of the releases (money losers).