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Oil, gas, seismic science, engineering, and cool pictures of rigs. Everything you need to know about exploration, recoverable assets and pipelines.

Oil, gas, seismic science, engineering, and cool pictures of rigs. Everything you need to know about exploration, recoverable assets and pipelines.

This is the place to be when you want to know what's going on with the stuff that keeps the world turning and how it works.

Checkout /r/oilandgasworkers for more conversations


Lazy speculation posts are rule breaking offenses. Speculation is welcome in the comments of newsworthy posts or in the weekly general discussion and speculation post. Of course market changing news is worthy of it's own post but posts like "What do you think prices will look like in a month" is considered rule breaking.

No editorialized titles. Post title needs to match source title. Leave the comments for editorialization. Source must be included in post.

No non-market changing oil politics. Memes can be removed at mod's discretion.

Crude hydrocarbons only. No snake oil. No weed oil. No makeup oil. No cooking oil. No "relationship" oil. No car oil.

/r/oil

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0

Offshore entry level

I currently don't have a driver's License I have a 2,348 dollar fine so it's been hard finding work without a driver's license I don't understand my uncle started off without a drivers license years ago why do I got to have a driver's license when I'm going to be on a boat most of the time ..but I just need some companies that will take me without a license until I can afford to pay my fine off

2 Comments
2024/05/19
10:53 UTC

7

Is a health and safety career on oil rig worth it?

I am currently studying for an Associate Degree in Petroleum Engineering (3 years) and my final exams are about to start, so I was thinking after the exams should I get a Job as an Associate Engineer or should I get a NEBOSH certificate and start my career in Health and Safety on Oil Rigs.
What kind of career advancements should I expect as a Safety Officer,will this career be good in long term?

8 Comments
2024/05/19
09:50 UTC

3

Market for reselling oil rig equipment?

How is the market (particularly in Texas) for buying equipment from a supplier and selling to rigs?

I know it’s done. Is it done mostly for land rigs? Do you have to be an established reseller? Do you have to have inventory ready to go?

15 Comments
2024/05/18
01:51 UTC

9

Bill Browder describes Russian oil loopholes for UK Select Committee

0 Comments
2024/05/15
17:08 UTC

2

Oil and gas operator bonds

If an operator wanted to operate a well that is on BLM land, do they need both a State bond AND a Federal bond, or one or the other. Does it depend on state?

4 Comments
2024/05/14
19:20 UTC

0 Comments
2024/05/14
15:34 UTC

9

Could oil shale extraction ever become practical/profitable like shale oil?

https://en.wikipedia.org/wiki/Green_River_Formation#Oil_shale

However, the estimates of recoverable oil has been questioned, back in 2013, by geophysicist Raymond T. Pierrehumbert, who argued that the technology for recovering oil from the Green River oil shale deposit had not been developed and had not been profitably implemented at any significant scale.

I'm pretty sure Exxon and some other companies did try extracting from there but weren't successful.

Is it like shale oil in the past ("just" more focused R&D needed) or is it like nuclear fusion where its feasibility is questionable?

15 Comments
2024/05/14
11:25 UTC

2

Energy Transfer Remains Hungry for M&A, Sees 1Q Oil Volumes Surge

0 Comments
2024/05/13
11:09 UTC

0

Georgia is a magnet for data centers and other cutting-edge industries

There's Not Enough Power for America's High-Tech Ambitions; Georgia is a magnet for data centers and other cutting-edge industries, but vast electricity demands are clashing with the newcomers' green-energy goals

Uberti, David.  Wall Street Journal (Online); New York, N.Y.. 12 May 2024.

ATLANTA—Bill Thomson needs power fast. The problem is that many of the other businesspeople racing into Georgia do too.

Thomson heads marketing and product management at DC Blox, which in recent years built a string of data centers in midsize cities across the fast-growing Southeast. The company more recently set its sights on Atlanta—the would-be capital of the region—joining a slew of tech and industrial firms piling into the state.

Vying for a piece of one of America's hottest markets, those businesses tend to have two things in common. One is that they represent a U.S. economy increasingly driven by advanced manufacturing, cloud computing and artificial intelligence. The other is that they promise to hoover up huge amounts of electricity.

That combination means Georgia's success in luring this development comes with a side effect: Power is a big source of tension. The clean-energy goals of companies and governments are running up against the need for projects to break ground fast. So far, climate advocates fear the imperatives of growth mean more fossil fuels.

Georgia's main utility, Georgia Power, has boosted its demand projections sixteen-fold and is pushing ahead on a hotly contested plan to burn more natural gas. Critics warn it will yield higher bills and unnecessary carbon emissions for decades. Some companies are scrambling to secure bespoke renewable-energy deals to power their development.

One major source of disruption is data centers. The facilities are ballooning in size as people spend more of their waking hours online and companies digitize everything from factory processes to fast-food drive-throughs. All that computing requires power—and for firms like DC Blox to lock it in as quickly as possible.

"Generally," Thomson said, "we find the guys with the fastest power win."

Similar quandaries are rippling through other hubs of the new American economy, with utilities in Tennessee and the Carolinas forecasting their own unexpected surges in load growth. U.S. power usage is projected to expand by 4.7% over the next five years, according to a review of federal fillings by the consulting firm Grid Strategies. That is up from a previous estimate of 2.6%.

The projections come after efficiency gains kept electricity demand roughly flat over the past 15 years, allowing the power sector to limit emissions in large part through coal-plant closures.

"We haven't seen this in a generation," said Arne Olson, a senior partner at consulting firm Energy and Environmental Economics. "As an industry, we've almost forgotten how to deal with load growth of this magnitude."

For states like Georgia, the fear is missing out on what could be once-in-a-generation investments. Wall Street is salivating over an artificial-intelligence-fueled tech bonanza, while Washington is throwing billions of dollars into domestic manufacturing.

The added wrinkle is that it is all happening as many parts of America—corporate America included—are trying to wean themselves off fossil fuels.

"These companies all have clean-energy goals," said Patty Durand, a Georgia Power critic who is campaigning to be a utility regulator in the state. "Those goals are at risk if Georgia Power gets what it wants."

The Peach State's energy quandary stems from the type of economic dynamism that many counterparts would envy. Its growth has consistently outpaced the nation's. A smaller portion of Georgians are jobless than the U.S. average, while their incomes tend to be rising faster.

State and local economic-development teams have courted large businesses to set up shop with sales pitches that have included generous financial incentives. Rail lines, ports and America's largest air hub also provide access to faraway customers.

Pat Wilson, commissioner of the Georgia Department of Economic Development, said energy is increasingly part of those discussions with newcomers. Officials tout the newly expanded Plant Vogtle, America's largest nuclear power plant , as a sign the state is ready for long-term growth.

"We have a utility partner to make sure you can meet your energy needs on day one," Wilson said.

Those needs include affordability, reliability and sustainability for firms like Aurubis, a German metals giant building a recycling plant in the outskirts of Augusta.

U.S. energy prices are far lower than those in Europe. That is a boon for Aurubis, which uses mammoth equipment to shred old circuit boards and electrical wiring, melt the scraps, and separate copper from other materials.

View Image -

David Schultheis is in charge of a new recycling plant being built by German metals giant Aurubis in the outskirts of Augusta. PHOTO: Kendrick Brinson for The Wall Street Journal

The company also boasts aggressive emissions-reductions targets for its power-intensive smelters. At its roughly $820 million Georgia plant, Aurubis will use up to 31 megawatts of electricity, enough to power thousands of homes.

"Not every project itself has to reduce carbon emissions," said David Schultheis, president of the Georgia facility. "But the overall set of projects has to guide us there."

The firm has made strides to that end in Europe by bolstering its usage of wind or solar power in a portfolio stretching from Belgium to Bulgaria. In Georgia, Schultheis pointed to Plant Vogtle, visible just 12 miles away, as a symbol of reliable energy.

Companies prize nuclear power plants, since they produce carbon-free energy and—unlike wind or solar power—don't depend on the weather. But the projected power needs of new businesses in the state far exceed the expected output of the plant's recently added reactors, the second of which went online last month.

Despite Aurubis' proximity to Vogtle, which is co-owned by Georgia Power, it is also difficult to trace the source of electricity that reaches the substation on the German company's property nearby. Schultheis instead relies on the utility's overall power production for his carbon accounting, meaning the Georgia site will add more to Aurubis' carbon footprint.

"We get the full grid—the mix of the grid—of what they produce," he said.

Many of the battles over that energy mix have been fought in a windowless room in one of the imposing government buildings crammed into Atlanta's South Downtown area. That is home to meetings of the Georgia Public Service Commission, which oversees utilities including Georgia Power.

The investor-owned utility last fall made an unusual update to its periodic resource proposal to regulators. Citing a boom in new business customers, Georgia Power boosted its projected demand growth over the next seven years from less than 400 megawatts to 6,600 megawatts, or about a third more than the utility's total capacity at the beginning of 2023.

To make up the gap, the company put forward a plan that includes adding battery storage, buying power from fossil-fuel-burning plants in Mississippi and Florida, and building three new gas-fired turbines in Georgia.

The Southern Co.subsidiary has since sparred with renewable-energy-minded organizations as divergent as local municipal governments, the Sierra Club and the Pentagon.

Opponents argued the utility should accelerate demand-side responses, such as allowing customers to dial down energy usage depending on costs. Others proposed more-aggressive use of solar power and batteries, or so-called "virtual power plants" that allow consumers with solar panels to sell energy back to the grid.

In Georgia Power's view, adding gas is key to providing stable power and quickly ramping up electricity for moments of peak usage on the hottest days of summer and coldest days of winter. That is especially crucial given the utility's gradual retirement of coal-fired plants.

The state is attracting so many power users, Georgia Power contends, that new investments will actually suppress ratepayers' bills.

"We anticipate that we will not need to increase rates to cover the costs of these resources that we're adding," said Aaron Mitchell, the company's vice president of pricing and planning.

View Image -

A view of the Aurubis recycling plant. PHOTO: Kendrick Brinson for The Wall Street Journal

Some Georgians are skeptical, noting utilities' previous overestimates of demand growth. Power companies have a financial incentive to pursue capital projects, critics say, and overbuilding now would risk saddling ratepayers with assets that have decadeslong shelf lives.

The recent history of energy development in the state has also been rocky. The Georgia Power-led project to expand Plant Vogtle, the first U.S. nuclear development in decades, ran up more than $30 billion in costs and lagged years behind schedule.

Since the project's early stages in 2007, the 12-month moving average of residential power costs for the utility's customers has surged 68%, according to the Georgia Center for Energy Solutions. That outpaced inflation, as well as cost increases for industrial and commercial customers.

Price pressures and climate fears have pushed communities such as suburban Atlanta's DeKalb County, which has pledged to slash emissions, to lobby regulators for more aggressive oversight of the investor-owned utility. Ted Terry, a DeKalb County commissioner, warned that the state is using a 20th-century energy playbook while trying to attract 21st-century industries.

The state's energy market "is not working for all of us," Terry said. Regulators approved much of Georgia Power's plan on April 16.

'Essential to our economy'

The tension hasn't slowed businesses' rush to the state.

Alphabet's Google has operated data centers in Georgia for more than two decades, gradually expanding its footprint. In 2021, Microsoft established a new U.S. data-center region emanating from greater Atlanta. An Amazon Web Services spokesman said the firm recently bought land in the Peach State and is evaluating possible server-farm locations.

All three firms purchase massive amounts of renewable energy to help power their facilities around the world. All three are also members of the Clean Energy Buyers Association, a trade group pushing utilities, including Georgia Power, to go green.

Priya Barua, the organization's senior director of market and policy innovation, said the added difficulty in much of the Southeast is that traditionally regulated power markets sometimes give firms fewer opportunities to shop around for wholesale electricity.

"They're more limited in how they can get clean energy," she said.

Some analysts believe that could change as companies exert more pressure on regulators and developers strike deals with independent power producers. As part of Georgia Power's recent planning update, the utility said it would work with trade groups like Barua's to explore how commercial and industrial customers might build or contract their own clean-energy projects in the future.

Those setups have been confined in recent years to nonprofit electricity cooperatives that tend to serve rural areas. Instagram-owner Meta, for example, joined with a Georgia co-op and solar developer Silicon Ranch as part of a broader deal to power data centers.

But even in a more-competitive market, those deals may remain out of reach for most companies, such as DC Blox, the data-center operator building two facilities on opposing outskirts of Atlanta.

Founded in 2014, the firm constructed its first data center in an old paper plant in Chattanooga. Power usage: one megawatt. DC Blox has since built out a network from Myrtle Beach, S.C., to Huntsville, Ala., leasing space to municipalities, universities and manufacturers.

View Image -

Aurubis uses mammoth equipment to shred old circuit boards and electrical wiring, melt the scraps, and separate copper from other materials. PHOTO: Kendrick Brinson for The Wall Street Journal

Now, the company is big-game hunting for big-tech customers. The larger of its two Atlanta-area sites could reach up to 300 megawatts.

"The smart states and smart utility commissions are going to figure out how to do this because this isn't going to stop," said Thomson, the DC Blox executive. "AI is coming next."

DC Blox executives see themselves as part of Atlanta's evolution from logistics center to the digital hub of the Southeast. Nowhere is that more apparent than west of the city in Douglas County, the most sought-after corner of the region's data-center market.

Local officials including Chris Pumphrey, president of the public-private Elevate Douglas Economic Partnership, began seeking out data centers about a decade ago. While the facilities employ few full-time employees, operators and tenants pour property and sales taxes into public coffers. Another benefit to Douglas County was that the new industry reduced truck traffic to warehouses peppering the area.

"At that period of time," Pumphrey said, "there wasn't this significant concern about energy."

These days, Douglas County is home to current or forthcoming data centers by companies including Google, Microsoft, DC Blox, Flexential and Switch. As hundreds of construction workers etch the concrete structures into sides of hills like fortresses, Pumphrey is eagerly awaiting the payoff.

"They're essential to our economy," Pumphrey said. As for the energy concerns, he added, "We have to figure something out."

View Image -

Cooling towers at Plant Vogtle, a nuclear power station, are visible behind the new Aurubis facility. PHOTO: Kendrick Brinson for The Wall Street Journal

Write to David Uberti at david.uberti@wsj.com

Credit: By David Uberti

3 Comments
2024/05/13
10:29 UTC

3

Enbridge Expanding Gulf Coast Operations as Export Demand Remains High -- OPIS

Dow Jones Institutional News; New York. 10 May 2024.

Enbridge is planning to increase capacity on its Gray Oak Pipeline and expand docking operations in the Corpus Christi, Texas, area as part of its efforts to boost exports of Permian Basin liquids from the busy Gulf Coast port, the company said on Friday.

Enbridge said it plans to add 120,000 b/d of capacity to the 900,000-b/d pipeline and has purchased two docks and land adjacent to the Ingleside Energy Center from Flint Hills Resources for about $200 million.

Company officials said Enbridge recently finished work on four new storage tanks at the Ingleside site, bringing total storage capacity there to 18 million bbl. Enbridge also is planning five more tanks that will add 2.5 million bbl of capacity, Chief Executive Greg Ebel said on a call to discuss the company's first-quarter financial results.

He said the work is intended "to support growing international demand for North American energy exports."

"These strategic investments augment our competitive position in the region and support attractive economics for our customers," he said.

The Canadian company reported adjusted Q1 earnings of C$1.955 billion ($1.433 billion), a 13.3% increase from the same period last year.

It reported strong performance on the company's Mainline pipeline system, where Q1 volumes averaged 3.127 million b/d, up 0.22% year to year.

Ebel said the company expects volumes to remain above 3 million b/d through the remainder of the year.

Colin Gruending, executive vice-president of liquids, said now that Canadian regulators have approved a multi-year rolling plan for the line, Enbridge is in discussion with shippers about expanding capacity.

"You're going to see optimizations continue from us serially here month to month, quarter to quarter and then chunkier expansions in the 100,000 a day category in the next two years," he said.

Gruending said Enbridge has so far seen little impact on volumes from the start of operations on the recently completed Trans Mountain Pipeline expansion project, which now has the capacity to transport 890,000 b/d of crude from Canada's oil sands fields to export terminals on the Pacific Coast.

"We've not really seen a blip on our system here through April or May. And likewise, our downstream pipes remain pretty robust," he said. One reason for this, he said, was a reduction in exports of heavy Mexican crude, which has increased demand in the Gulf Coast region for Canadian heavy crude.

He said that while Enbridge's expansion efforts in Corpus Christi are focused on crude, "Ingleside is kind of a Swiss Army Knife multi-product ambition." Over time, Enbridge could use the docks and facilities for a variety of other products.

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from and The Wall Street Journal.

--Reporting by Steve Cronin, scronin@opisnet.com; Editing by Jeff Barber, jbarber@opisnet.com

(END)

May 10, 2024 12:53 ET (16:53 GMT)

0 Comments
2024/05/12
10:25 UTC

6

Do you think natural gas could and should replace coal?

14 Comments
2024/05/11
19:21 UTC

3

Renewable fuels take bite out of U.S. diesel consumption: Kemp - Reuters News

10 May 2024 13:24:00

LONDON, May 10 (Reuters) - Biodiesel and other renewable diesel fuel oils are displacing a small but growing volume of petroleum-derived distillate fuel oil in the United States, especially in California and other parts of the West Coast.

The result of this policy-driven change is that manufacturing and freight activity is correlated with total petroleum and renewable fuel oil supplied rather than just petroleum distillates alone.

Distillate fuel oils such as diesel and gas oil are overwhelmingly used in freight transport, manufacturing and construction, so consumption is closely correlated with the industrial cycle.

The cyclical upturn has remained weak over the last six months, as manufacturers struggle with headwinds caused by high interest rates for expenditure on expensive durable items.

But even if the recovery gains more momentum, the eventual increase in petroleum distillate consumption is likely to be smaller than anticipated as more demand is lost to renewable alternatives.

Chartbook: U.S. distillate consumption and stocks

The volume of petroleum-derived distillate fuel oil supplied to the U.S. domestic market, a proxy for consumption, fell to 3.9 million barrels per day (b/d) in February 2024 from 4.0 million b/d in the same month in 2023.

But this was offset by an increase in the supply of biodiesel and other renewable fuel oils to 0.3 million b/d from 0.2 million b/d, according to data from the U.S. Energy Information Administration (EIA).

Total consumption of petroleum and renewable fuel oils has been flat over the last year, consistent with other signs that manufacturers and freight hauliers are struggling to emerge from a long but shallow downturn in 2022/23.

Substitution of renewable fuel oils for petroleum-derived distillates is most advanced on the West Coast, where California has adopted state-level regulations requiring minimum blending rates and usage.

On the West Coast, the volume of petroleum distillates supplied fell to 370,000 b/d in February from 460,000 in the same month a year earlier and over 530,000 in February 2021.

Over the same period, the volume of renewable fuel oils supplied surged to 170,000 b/d from 90,000 b/d a year ago and less than 40,000 in 2021.

DISTILLATE INVENTORIES

The shift from consumption of petroleum distillates to renewable fuel oils has been mirrored by a similar shift in inventories (“Petroleum supply monthly,” EIA, April 30).

U.S. petroleum distillate inventories stood at 118 million barrels at the end of February, which was 18 million barrels (-13% or -1.14 standard deviations) below the prior ten-year seasonal average.

But petroleum distillates were supplemented by another 11 million barrels of biodiesel and renewable fuel oil stocks, up from 8 million barrels at the same time in 2023 and 7 million in 2022.

Combined inventories of petroleum and renewable distillates are 14 million barrels (-10% or -0.84 standard deviations) below the ten-year seasonal average, and broadly similar to levels in 2023 and 2022.

From the perspective of combined inventories, the production-consumption balance is only modestly tighter than normal.

PRICES AND CRACK SPREADS

The relatively small deficit in combined inventories helps explain why diesel prices and crack spreads have softened in recent months.

The expected acceleration in distillate fuel oil consumption and depletion of inventories has been repeatedly postponed as manufacturers have struggled to regain momentum.

Inflation-adjusted spot prices for ultra-low sulphur fuel oil delivered in New York Harbor averaged just $107 per barrel in April 2024, down from $136 in September 2023 and a high of $205 in May 2022.

In real terms, diesel prices have fallen faster than crude, with the diesel premium or crack spread narrowing to $22 per barrel in April from $46 in August 2023 and a high of almost $63 in June 2022.

The inflation-adjusted spread has reverted close to the five-year average for 2015-2019 before the coronavirus pandemic and Russia’s invasion of Ukraine disrupted the market.

Hedge funds and other money managers have reduced their combined position in U.S. diesel and European gas oil in eight of the most recent 11 weeks, selling the equivalent of 52 million barrels since February 13.

As a result, the combined position had been reduced to 35 million barrels (34th percentile for all weeks since 2013) on April 30 down from 87 million (73rd percentile) on February 13.

Fund positioning has transformed from bullish to mildly bearish as petroleum distillate inventories have depleted much less than normal for the time of year.

Current diesel prices and spreads indicate supplies are not especially tight, which has taken some of the heat out of the crude market as well, contributing to the retreat of Brent prices from their recent highs in early April.

2 Comments
2024/05/10
15:25 UTC

2

Plant design

Can someone please help me answer this question or refer me to a book that can help me answer this for an assignment in Petroleum refining and Petrochemical production.

Question
Design a plant with a production capacity of 10,000 barrels per day that produces ultra-low sulfur diesel fuel from a feedstock of heavy crude oil. (50 marks)

3 Comments
2024/05/10
11:10 UTC

6

Targa Expects Another Major Permian Pipeline Project This Year

www.hartenergy.com3 min

May 3, 2024

View Original

Editor's note: This article has been updated with additional information and clarification from Targa Resources, including the status of its Apex Pipeline project.

After setting a throughput record in its Permian Basin system, Targa Resources executives discussed moving new production facilities and their expectation that another gas pipeline project out of the region would move forward this year.

“Targa’s number one priority is making sure gas moves out of the basin, that our producers can fill their gas into our plants, and we can move gas for producers out of our plants,” said Bobby Muraro, chief commercial officer, during Targa’s May 2 first-quarter earnings call. “And we are working on multiple fronts, multiple options, multiple pipes — all that have very good traction.”

On the call, executives were confident that one of several proposed major Permian gas pipeline projects, planned by various midstream companies, would get a go-ahead this year.

“I fully expect, as I’ve said before, that a pipe will go FID by the end of this year,” Muraro said.

Targa’s proposed Apex pipeline is one of the candidates, though the company is keeping its options open, a Targa spokesperson said.

Targa received approval from the Texas Railroad Commission for the Apex Pipeline in March 2023. As designed, the Apex would be a 42-inch diameter, 563-mile natural gas egress line out of the Permian stretching toward facilities in Houston and Southwest Louisiana. When the plan was released, East Daley Analytics estimated the line’s capacity would be about 2 Bcf/d, and the project would cost between $2 billion and $2.5 billion.

Natural gas egress capacity out of the Permian Basin has been a growing issue. Prices at the Waha gas hub near Pecos, Texas, have generally been in negative territory for more than a month, thanks to spring pipeline maintenance on an already tight system.

Several natural gas pipeline projects are in various stages of development. The Matterhorn Express Pipeline, a joint project of WhiteWater, EnLink, MPLX and Devon Energy, is well underway and expected to begin service in third-quarter 2024.

However, Targa said there is still a need for one, if not more, natural gas lines out of the Permian to meet current and future demand for U.S. LNG exports and electrical power generation within the U.S.

Targa is also beefing up its capacity to handle a growing NGL export market.

In its earnings statement, Targa announced the construction of a new 275 MMcf/d cryogenic natural gas processing plant, Pembrook II, in the Midland Basin. The plant is scheduled to go online by the end of 2025. Targa is also moving forward on a new train at its Mont Belvieu facility east of Houston — a new 150,000 bbl/d fractionator, which is expected to be completed in the second half of 2026.

“Looking ahead, our premier Permian supply aggregation, coupled with our integrated NGL system, positions us nicely to continue to generate high-return organic opportunities and be able to continue to return incremental capital to our shareholders,” said Targa CEO Matt Meloy.

The company anticipated the need for the projects last year, and the construction will have no impact on Targa’s $3.8 billion capex budget for 2024 and 2025, Meloy said.

Earnings, results

For the first quarter, Targa reported revenues of $4.56 billion, a 1% revenue increase over first-quarter of 2023. First-quarter 2024 revenues beat market expectations by about $260 million.

While gas and NGL volumes from the Permian continued to rise, the midstream company also saw a decrease in natural gas flows from shale basins in Southeast Texas, down 7% and North Dakota, down 4%.

1 Comment
2024/05/10
10:29 UTC

10

Oil recovers on US crude storage draw, rise in China imports

in Oil & Companies News 09/05/2024

📷

Oil prices rose on Thursday as falling inventories and higher Chinese imports supported expectations for demand growth in the world’s two largest crude-consuming nations.

futures for July were up 57 cents, or 0.7%, to $84.15 a barrel at 1131 GMT. U.S. West Texas Intermediate crude for June was up 56 cents, or 0.7%, to $79.55 per barrel.

“Oil markets were buoyed by a larger-than-expected draw in the U.S. inventory data. The improved China trade balance data added to the upside momentum,” said Tina Teng, an independent market analyst.

Crude inventories in the U.S., the world’s biggest oil user, fell last week by 1.4 million barrels to 459.5 million, according to the Energy Information Administration, more than analysts’ expectations for a 1.1 million-barrel draw.

Stockpiles fell as refinery activity increased by 307,000 barrels per day (bpd) in the period.

Shipments of crude in April to China, the world’s biggest oil importer, totalled 44.72 million metric tons, or about 10.88 million bpd, customs data released on Thursday showed. That was up 5.45% from a year earlier.

“The impressive recovery (in oil prices) was also helped by increasingly slim hopes of an Israel-Hamas ceasefire,” said oil broker PVM’s Tamas Varga.

Hamas said on Wednesday it was unwilling to make more concessions to Israel in negotiations over a ceasefire for Gaza, although talks were still under way in Cairo.

Just a few hours before Hamas’ statement, the U.S. said the two sides were not far apart.

“While there may be some short-term relief for oil prices, it may be difficult to return to April’s high above the $90 per barrel level, where geopolitical tensions were at its peak,” said Yeap Jun Rong, market strategist at IG.
Source: Reuters

1 Comment
2024/05/09
12:59 UTC

5

Reliability Engineering

Hi, we are a startup company in the field of reliability engineering targeting the oil and gas industries. I am actively searching for a niche to specialize in to gain traction and build a brand. Do you have any recommendations?

12 Comments
2024/05/08
19:50 UTC

2

Feedback on OFS software

Long time lurker, first time poster.

I just launched a fieldops / field ticketing software for small and mid-sized OFS providers (2 min promo here: https://vimeo.com/938297796?share=copy). Would anyone here that works on fieldops management, field ticketing or invoicing be willing to connect and provide feedback?

Feel free to DM as well - really appreciate it!

2 Comments
2024/05/08
17:42 UTC

58

I traveled to Guyana to figure out WTF was going on down there

In March, I traveled down to Georgetown Guyana to get a first-hand look at what’s going on down there.

My goal was to discover opportunities to invest in the world's fastest-growing economy.

If you haven't followed the Guyana growth story, you can read about it in my previous article "Black Gold: The Guyana Opportunity".

The trip was a massive success, and I have no doubt I'll be returning shortly. Here are a few things I learned from my time down there:

Lesson #1: The Growth Story in Guyana is Complicated

The process of developing a nation isn't pretty. Nobody wants to see how the sausage is made and in Guyana, they're up to their elbows in ground pork.

Everywhere I looked, I was reminded of the contradictions found in developing nations.

When you touchdown at their modern airport it feels as if you could be anywhere in the Western world.

The airport is filled with advertisements for upcoming business conferences

That feeling of being in the Western world stops when you walk out the airport door. The hot, wet tropical air hits your face and you know you're not in Kansas anymore. You're greeted with hundreds of drivers, and people pretending to be drivers – each one of them intent on giving YOU a ride.

The route into Georgetown from the airport is a two-lane road full of potholes and lined with shanties. It reminded me a bit of being in India in 2008. Lots of chaos mixed in with signs of "progress" everywhere. Every few miles there's a giant warehouse selling Chinese or American construction equipment.

Arriving in Georgetown is quite underwhelming. I'll admit, that it takes a strong imagination to picture this city as the next Dubai. There are piles of trash in the ditches, the hotels have razor wire on them, and it feels dangerous. I estimate that rundown buildings and shanties outnumber the new ones 10 to 1.

Yet the more I explored I couldn't help but get excited.

Construction is happening in every direction and there's a slight optimism in the air. Everyone knows this is Guyana's time and they're motivated to take advantage of it. After years of disappointment, there's a new energy of "we'll see" and that feels like progress.

Learning #2: The Money Has Been Made in Oil Exploration

I arrived in Georgetown believing supporting the oil industry was the biggest opportunity. After 5 days there, I can conclude I was wrong.

The oil and gas companies are way further along than I expected. They're pumping millions of barrels out of the earth and their supply chain is already dialed in.

We met with the CFO of ExxonMobil Guyana at a colonial hotel in downtown Georgetown. From what I gathered that evening, most of the money was made supporting the oil and gas industry between 2017 and 2020.

There’s money to be made in oil and gas, but I don't believe it’s the primary opportunity at this point.

Learning #3: Access to Capital is a Problem in Guyana

Development in Guyana is hindered by its conservative banking system. The local banks offer aggressive terms on loans with short payback windows. Many of the banks only accept real estate as collateral.

This puts Guyanese entrepreneurs in a bind. The fastest-growing companies in Guyana could be doubling or tripling each year. Instead, they are constrained by a lack of working capital.

Instead of reinvesting profits in their businesses, many of them are using their profits to buy real estate. This is the only way they can qualify for more working capital.

Providing financing is the biggest opportunity in Guyana. This is not unique to Guyana, as it's a problem across the developing world. While it's the largest opportunity, it's also the most complicated one to pursue.

Learning #4: Eco-tourism is Going to Boom in Guyana

Kaieteur Falls in Guyana is four times higher than Niagra Falls!

Guyana is a beautiful country with a massive untouched rainforest. Up till now, the lack of infrastructure has made it incredibly challenging to access it. Getting into the interior requires flights or taking boats up the river.

This is going to change. The President of Guyana is highly motivated to support the tourism industry. Before he was elected President, he was the Minister of Tourism. He's passionate about attracting visitors and supporting "eco-tourism" in Guyana is his pet project.

Pros:

  • Unparalleled access to the Amazon rainforest.
  • Kaieteur Falls, an incredible single-drop waterfall
  • Only a 4.5-hour flight from Miami and 6 hours from Houston.
  • The only English-speaking country in South America.
  • Excellent food.
  • Leadership is motivated to support foreign tourism.

Cons:

  • Poor roads and general transportation. Access to the jungle often requires flights or boats.
  • Georgetown is dangerous and not an appealing city for visitors.

The food in Georgetown was incredible.

Learning #5: Construction is the "No-Brainer" Opportunity

Rumor has it that Exxon alone is going to move 40K ex-pats to Guyana in the next 5 years. As it stands they currently don't have enough "luxury housing" to support them.

We met with numerous entrepreneurs who are building homes and developments in Guyana. This seems to be a no-brainer opportunity.

Learning #6: Billions Will Be Made Building Roads and Bridges.

The roads in Guyana are a mess and rivers snake through the entire country. They will be building new roads and bridges for the next decade and even that won’t be enough.

The "best" roads in the country currently are two-lane highways, and the main bridge shuts down for half the day to allow boats to go through.

Learning #7: The Price of Power is a Constraint

Cheap energy is key to unlocking the 2nd half of the Guyana growth story.

The current price of electricity in Guyana is higher than in other countries in the region. This makes manufacturing or any energy-intensive projects cost-prohibitive in Guyana.

Fortunately, there's a gas-to-energy power plant coming online in the next 24 months. That power plant will cut the price of electricity in half.

When the power plant comes online, manufacturing in Guyana will be competitive. Local businesses producing finished goods, food, and other energy-intensive products will thrive.

Conclusion:

When oil is discovered, money quickly follows. The more time I spent in Guyana the vision of the future became more clear. Many smart entrepreneurs and investors have bet the farm on Guyana and I understand why.

The train is moving in the right direction and it's only speeding up. There will be hiccups, but the path for Guyana to become a shining star in Latin America is there.

What are your thoughts on Guyana?

22 Comments
2024/05/08
17:33 UTC

1 Comment
2024/05/08
11:33 UTC

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