Here are the top five stories from Haynesville.com for the week of March 21 through March 27. Enjoy!
5. U.S. oil rig decline smallest since December – Baker Hughes
The number of rigs drilling for oil in the United States declined by 12 this week to 813, the smallest decline since December, oil services firm Baker Hughes said in its closely watched survey on Friday.
That compares with declines of 41 and 56 rigs in the prior two weeks and is a sign the collapse in drilling over the past few months has slowed.
With the decline this week, the number of oil rigs has fallen for a record 16th week in a row to the lowest level since 2011, according to Baker Hughes data going back to 1987. To read the full article, click here.
4. Halliburton, Baker Hughes shareholders overwhelmingly approve merger
Halliburton shareholders have overwhelmingly approved the company’s long-awaited merger with Baker Hughes, the Digital Journal reports. Baker Hughes also announced on Friday that its stockholders adopted the merger agreement, thereby approving the merger. Each company held their own special meetings Friday morning.
Nearly 99 percent of the shareholders at Halliburton’s special meeting voted in favor of the proposal to issue Halliburton shares. Baker Hughes shareholders also supported the merger overwhelmingly, with 98 percent of shareholders voting to approve the deal. Halliburton chairman and CEO Dave Lesar is pleased with the results and is looking forward to moving ahead. To read the full article, click here.
3. Oil council: Shale won’t last, Arctic drilling needed now
WASHINGTON — The U.S. should immediately begin a push to exploit its enormous trove of oil in the Arctic waters off of Alaska, or risk a renewed reliance on imported oil in the future, an Energy Department advisory council says in a study to be released Friday.
The U.S. has drastically cut imports and transformed itself into the world’s biggest producer of oil and natural gas by tapping huge reserves in shale rock formations. But the government predicts that the shale boom won’t last much beyond the next decade.
In order for the U.S. to keep domestic production high and imports low, oil companies should start probing the Artic now because it takes 10 to 30 years of preparation and drilling to bring oil to market, according to a draft of the study’s executive summary obtained by the Associated Press. To read the full article, click here.
2. Yemen conflict hits stocks hard but sends oil price surging
LONDON — Saudi Arabian strikes on key military installations in Yemen hit stock markets hard Thursday and sent oil prices surging.
KEEPING SCORE: In Europe, France’s CAC 40 slid 1.6 percent to 4,939 while Germany’s DAX dropped 1.9 percent to 11,643. Britain’s FTSE 100 shed 1.4 percent to 6,890. Wall Street was poised for sizeable losses at the open, with both Dow futures and the broader S&P 500 futures down 0.6 percent, a day after recording substantial losses in the wake of weak economic data that reinforced concerns over the U.S. economic recovery. To read the full article, click here.
1. $50 crude? No problem for these 3 economically-friendly “sweet spots”
With the price of West Texas Intermediate (WTI) crude hovering between the $43 to $50 for the better part of this month, analysis by Wood Mackenzie has found that the majority of U.S. shale plays would need a 30 percent cost reduction to be economically viable.
With that being the case, only a select few “sweet spots” exist where drillers focus their limited capital expenditure dollars. Those “sweet spots” include the Springer, a newer shale play located in southwest Oklahoma, the Karnes Trough portion of the Eagle Ford Shale and the Nesson Anticline portion of the Bakken Shale. Two sub-plays that require minor cost reductions are the Parshall Sanish portion of the Bakken and the SCOOP Woodford in Oklahoma. To read the full report, click here.