Bankruptcy: Extraction Oil & Gas files for bankruptcy.
BP: writes off billions.
BP Plc will make the biggest write down in a decade on the value of its business, as the British oil major predicts the coronavirus pandemic will hurt long-term demand and accelerate the shift to cleaner energy.
The company sees oil and gas being about 20% to 30% cheaper than before on average, and also expects the cost of carbon emissions to be more than twice as high.
In response, BP is undertaking a review of its projects that could result in some oil discoveries being left in the ground. This risk, of so-called stranded assets, is an issue of growing importance as the industry grapples with fundamental shifts in energy consumption trends.Oilprice headlines:
- world's electricity demand is rising faster than the population;
- Aramco completes $69 billion SABIC takeover;
- Saudi Arabia won't extend cuts past end of June; Saudi is betting on improved supply / demand environment; don't bet on it;
- the real reason China is importing so much oil; spoiler alert -- Saudi Arabia is "giving away" their oil to maintain market share;
- Iraq asks oil companies operating inside Iraq to cut back on production; wants to comply with 15% cuts;
- Exxon forced to cut production in Guyana due to .... drum roll ... due to the risk of excessive flaring.
Urals sour: down 5%; down $2.00; trading at $38.70.
*****************************************
Back to the Bakken
Active rigs:
| $37.91 | 6/16/2020 | 06/16/2019 | 06/16/2018 | 06/16/2017 | 06/16/2016 |
|---|---|---|---|---|---|
| Active Rigs | 13 | 61 | 62 | 57 | 28 |
Seven wells yet to report:
Tuesday, June 16, 2020: 39 for the month; 184 for the quarter, 411 for the year:
37214, conf, CLR, Burian 3-27H1,
36878, conf, Equinor, Domaskin 40-31 4TFH,
36075, conf, BR, CCU Zephyr 14-29TFH,
Monday, June 15, 2020: 36 for the month; 181 for the quarter, 408 for the year:
36879, conf, Equinor, Jack Cvancara 19-18 XE 1TFH, Alger,
36076, conf, BR, CCU Zephyr 14-29MBH, Corral Creek,
Sunday, June 14, 2020: 34 for the month; 179 for the quarter, 406 for the year:
None.
Saturday, June 13, 2020: 34 for the month; 179 for the quarter, 406 for the year:
37193, conf, CLR, Wiley 14-25HSL, Pershing,
35959, conf, Whiting, Arndt 14-5-2XH, Sanish, see this note;
RBN Energy: the Brent complex, linkages that make it work and implications for global markets, part 2. Archived.
Brent is by far the most important crude oil benchmark in the world, with well over 70% of all global crudes tied either directly or indirectly to the North Sea crude’s price. But the original Brent crude oil production is almost played out, with all of the offshore Brent producing platforms soon to be decommissioned. This might seem to be a big problem, but in the world of crude oil trading, it is a total non-issue, because Brent is no longer simply a grade of crude oil. It is a multi-layered matrix of trading instruments, pricing benchmarks, and standard contracts linked together by price differentials traded across a number of mechanisms and platforms that form the foundation of a robust, vibrant, and extremely important marketplace. Today, we delve further into the mechanics of the Brent complex, the key components that make it work, and the transactional glue that binds them together
This is absolutely fascinating. A constant theme of the blog was the serious trouble Saudi Arabia is in. It is. But it looks like Iraq is all of a sudden the country in trouble. Iran? I don't know how they do it.
ReplyDelete