oil well over 50 now
oil well over 50 now
and equities not responding! what the hell?
Re: oil well over 50 now
Monday notes from John White at Roth Capital - July 31
China's crude imports are expected to grow by double digits in 2018, Zhang Haichao, vice president of Sinopec Group (SNP-NC), told Reuters on the sidelines of an industry conference in Beijing on 7/25/2017. Zhang's estimates also cited Chinese demand for imported crude would grow by around 400,000 barrels b/d in 2017, which would likely make China the world's largest crude oil importer on an annual basis for the first time ever. For the first six months of 2017, China imported 8.6 million b/d, up nearly 14% from 2016, according to customs data.
On 7/25/2017 Reuters reported that Halliburton Co (HAL-NC) reported impressive 2Q results but warned the growth in the North American rig count was "showing signs of plateauing." "Today, rig count growth is showing signs of plateauing, and customers are tapping the brakes," said Dave Lesar, Executive Chairman. "This tapping of the brakes is happening all over the place in North America." Earlier this month, senior vice president for global business development and marketing at Halliburton, Mark Richard, told Reuters the U.S. shale drilling boom is likely to ease next year as demand on the industry's service sector is unsustainable.
Physical crude markets are at last showing signs of tightening, as record refinery consumption in the United States coincides with a slowdown in oil exports from the Middle East, Reuters reported on 7/28/2017. U.S. refineries processed an average of almost 17.3 million b/d of crude last week, an increase of 620,000 barrels b/d compared with the same week in 2016. Fuel consumption by U.S. motorists remains largely flat but U.S. refineries are seeing higher demand for gasoline and diesel from Latin America where supplies have been hit by local refinery problems. Saudi Arabia has been restricting exports in recent weeks and has stated exports will be below 6.6 million b/d in August, compared with 7.3 million b/d in August 2016, and the lowest for the month since 2010. Saudi Arabia and Iraq both tend to export less during the summer because they use more crude domestically to burn in power plants to meet air conditioning demand. So some of the slowdown in Saudi exports may be seasonal, but officials are keen to frame it as a deliberate policy to accelerate the reduction of global oil stocks. Saudi sources have said export allocations to the United States, Europe and Asia will all be cut sharply in August.
U.S. E&P companies added 10 rigs in July, the fewest of any month since May 2016, as recent declines in crude prices have slowed the pace of a 14-month drilling recovery, as reported by Reuters on 7/28/2017. E&P companies added two oil rigs in the week to 7/28, bringing the total count up to 766, the most since April 2015, Baker Hughes said in its closely followed report on 7/28/2017. That compares with 374 active oil rigs during the same week a year ago. Several E&Ps, including ConocoPhillips (COP-NC), Hess Corp (HES-NC), and Anadarko Petroleum (APC-NC) said last week they reduced their capital spending plans in reaction to crude price declines over the past four months.
China's crude imports are expected to grow by double digits in 2018, Zhang Haichao, vice president of Sinopec Group (SNP-NC), told Reuters on the sidelines of an industry conference in Beijing on 7/25/2017. Zhang's estimates also cited Chinese demand for imported crude would grow by around 400,000 barrels b/d in 2017, which would likely make China the world's largest crude oil importer on an annual basis for the first time ever. For the first six months of 2017, China imported 8.6 million b/d, up nearly 14% from 2016, according to customs data.
On 7/25/2017 Reuters reported that Halliburton Co (HAL-NC) reported impressive 2Q results but warned the growth in the North American rig count was "showing signs of plateauing." "Today, rig count growth is showing signs of plateauing, and customers are tapping the brakes," said Dave Lesar, Executive Chairman. "This tapping of the brakes is happening all over the place in North America." Earlier this month, senior vice president for global business development and marketing at Halliburton, Mark Richard, told Reuters the U.S. shale drilling boom is likely to ease next year as demand on the industry's service sector is unsustainable.
Physical crude markets are at last showing signs of tightening, as record refinery consumption in the United States coincides with a slowdown in oil exports from the Middle East, Reuters reported on 7/28/2017. U.S. refineries processed an average of almost 17.3 million b/d of crude last week, an increase of 620,000 barrels b/d compared with the same week in 2016. Fuel consumption by U.S. motorists remains largely flat but U.S. refineries are seeing higher demand for gasoline and diesel from Latin America where supplies have been hit by local refinery problems. Saudi Arabia has been restricting exports in recent weeks and has stated exports will be below 6.6 million b/d in August, compared with 7.3 million b/d in August 2016, and the lowest for the month since 2010. Saudi Arabia and Iraq both tend to export less during the summer because they use more crude domestically to burn in power plants to meet air conditioning demand. So some of the slowdown in Saudi exports may be seasonal, but officials are keen to frame it as a deliberate policy to accelerate the reduction of global oil stocks. Saudi sources have said export allocations to the United States, Europe and Asia will all be cut sharply in August.
U.S. E&P companies added 10 rigs in July, the fewest of any month since May 2016, as recent declines in crude prices have slowed the pace of a 14-month drilling recovery, as reported by Reuters on 7/28/2017. E&P companies added two oil rigs in the week to 7/28, bringing the total count up to 766, the most since April 2015, Baker Hughes said in its closely followed report on 7/28/2017. That compares with 374 active oil rigs during the same week a year ago. Several E&Ps, including ConocoPhillips (COP-NC), Hess Corp (HES-NC), and Anadarko Petroleum (APC-NC) said last week they reduced their capital spending plans in reaction to crude price declines over the past four months.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: oil well over 50 now
My internet service was down until noon on Monday. When it came back on, my wifi network was down and it took me over a hour working with Xfinity to get it working again. As much as computers and the internet benefit our lives, they are a pain in the ass when they don't work.
DVN, EOG, FANG, NFX, PXD and RRC are all expected to release Q2 results on Tuesday, August 1. I will be VERY BUSY this week.
DVN, EOG, FANG, NFX, PXD and RRC are all expected to release Q2 results on Tuesday, August 1. I will be VERY BUSY this week.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group