Drillers Flock to Rockies as Sleepiest Shale Corner Awakens
As rising oil prices making production more lucrative, U.S. producers are looking to expand beyond the extremely low-cost Permian Basin in Texas. Colorado is turning out to be an ideal expansion location, and companies are beginning to grow their Rocky Mountain footprint. Exploration and production companies are betting their resources that prices will remain high enough to make new activity profitable. Click here to read more from Bloomberg.
Goldman Says Big Oil Poised for Its Best Year in Decades
According to analysts for Goldman Sachs, oil majors such as Shell and ExxonMobil will experience some of the best gains in decades in 2018. Lower prices have forced many competitors out of the market, allowing majors to acquire new assets that will help them increase revenue next year. Cost reductions in response to plummeting prices have also contributed to superior performance for oil majors. Click Here to read more from Transport Topics.
Asian Fuel Buyers Question American Crude Quality
With OPEC voluntarily reducing their market share, Asian countries that historically relied on Middle Eastern crude blends have turned to the U.S. Unfortunately for them, U.S. crude qualities vary significantly compared to Middle Eastern blends. Because American crude typically comes from shale and could be from multiple different geographic formations, the quality varies, making the product hard to refine into fuel. Some Asian companies said they no longer plan to order from U.S. areas such as Eagle Ford fields in south Texas. Click Here to read more from Bloomberg Technology.
Oil Markets in 2018: What Could Go Wrong?
In 2014, no one expected prices to collapse from over $100 to just $30/bbl. Looking to 2018, what major factors are at play that could send prices just as quickly in the other direction? Click Here to read about the trends most likely to alter oil prices next year.