Oil extends gains as OPEC+ prepares to meet

Category : News

By Sheela Tobben on 12/3/2019

NEW YORK (Bloomberg) – Oil rose for a second day as investors focused on the upcoming OPEC+ meeting that could lead to deeper supply cuts by some of the world’s biggest crude producers.

Futures edged higher in New York on Tuesday to the highest settlement in almost a week. Members of the Organization of Petroleum Exporting Countries are sending conflicting signals about whether tougher supply caps are imminent as the cartel and its allies prepare for key meetings later this week.

Crude also bounced above its 50-day moving average and the U.S. greenback declined, bullish indicators for chart-watching technical traders.

“With the OPEC meetings coming up, there are expectations that not only will there be an extension of the existing cuts but also a further production cut,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.

During preparatory discussions on Tuesday, cartel delegates said deepening or extending supply cuts hadn’t been discussed. Earlier in the day’s trading session, futures fell after U.S. President Donald Trump said he was willing to wait another year to sign a trade deal with China.

West Texas Intermediate for January delivery settled 14 cents higher to $56.10 a barrel on the New York Mercantile Exchange.

Brent for February settlement declined 10 cents to $60.82 on the London-based ICE Futures Europe Exchange. The global benchmark crude traded at a $4.79 premium to WTI for the same month.


TGS introduces new U.S. deepwater Declaration Refocus imaging program

Category : News

12/3/2019

ASKER, NORWAY – TGS kicked off its the Declaration Refocus next generation M-WAZ imaging program in Mississippi Canyon in the U.S. Gulf of Mexico. The new, high-end re-imaging workflow is designed to provide enhanced imaging and greater illumination of prospectivity in the area. The program comprises data covering more than 380 Outer Continental Shelf (OCS) blocks (~8,860 km²) from orthogonal 3D WAZ programs previously acquired by TGS using WesternGeco Q-Marine and CGG StagSeis seismic systems between 2010 and 2015. Full product delivery of Declaration Refocus is expected at the end of 2020.

Kristian Johansen, CEO of TGS, said, “We are extremely pleased to begin the next phase of imaging over the data rich Declaration survey. By applying our most advanced imaging techniques to this highly-successful region TGS will further illuminate key subsurface structures and continue to provide the industry with unprecedented insight and continuous coverage across this prolific basin. Combined with our vast library of well information and our trusted imaging solutions, we continue to provide customers with the most comprehensive range of subsurface data in the Gulf of Mexico.”

The new imaging project will process data from the prolific Mississippi Canyon, Viosca Knoll and De Soto Canyon areas using the latest imaging technologies to provide a significant uplift in data quality. Particular attention will be given to increasing frequency content and resolution throughout the entire data section with additional focus on the Norphlet formations. The imaging process will also provide enhanced velocity and salt models. The Declaration area is one of the most active for E&P companies in the U.S. Gulf of Mexico and will benefit from two licensing rounds every year under the BOEM 2017-2022 Five-Year Program.

This project is supported by industry funding.


Oil sands producers curtail spending amid production limits, export challenges

Category : News

By Kevin Orland on 12/3/2019

CALGARY – (Bloomberg) – Capital spending in Canada’s oil-sands reserves look set to continue to dwindle as pipeline bottlenecks persist and the Alberta government’s production limits remain in place.

Husky Energy Inc. said early Monday that it’s cutting capital spending for 2020 and 2021 by a total of C$500 million ($375 million), and Suncor Energy Inc. said later in the day that it’s keeping spending on oil-related projects flat.

While other major producers have yet to release spending plans for next year, the projections from Husky and Suncor show energy companies may continue to focus on wringing more profit from their existing output, rather than plowing money into churning out more barrels. After a year in which Canadian oil companies’ output was cut by mandatory production limits, Suncor is projecting a 5% production increase for next year, while Husky sees a 4% boost.

“Looking forward, we will continue to focus on value over volume,” Suncor Chief Executive Officer Mark Little said in a statement. Suncor’s overall capital budget is increasing next year, but the added spending is being directed toward initiatives that will increase the company’s free funds flow, such as a cogeneration facility, digital technology initiatives and a bi-directional pipeline.

The oil sands, which contain the world’s third-largest reserves of crude, have struggled to recover from the 2014-2016 downturn and a shortage of pipeline space that has weighed on prices and restrained production growth. Capital spending in the oil sands already was set to decline for the fifth straight year, to C$12 billion this year from C$33.9 billion in 2014, according to the Canadian Association of Petroleum Producers.