By JOHN P. TRETBAR
Baker Hughes reported 839 active drilling rigs across the US last week, up 15 from the week before. There was an increase of ten rigs targeting oil and an increase of five drilling for natural gas. Another seasonal decline noted in Canada last week, where the count dropped by 23 to 132 active drilling rigs. Independent Oil & Gas Service reported a net drop of nearly ten percent from the weekly Kansas rig counts. There were six active drilling rigs east of Wichita, down four, and 22 in western Kansas, up one.
There were 22 new permits filed for drilling in new locations last week; 390 so far this year. There were 12 drilling permits filed in western Kansas, and ten east of Wichita.
Independent Oil & Gas reported 31 new well completions last week, which brings the year-to-date total to 380. There were 16 completed wells in eastern Kansas, and 15 west of Wichita, including one dry hole.
The Kansas Corporation Commission reported 136 intent-to-drill notices in March, compared to 263 in March of last year. There have been 405 intents filed so far this year compared to 673 at this time last year. There are four new intent notices filed in Barton County, two in Ellis County, one in Russell County, and three in Stafford County.
Here’s one you might not have seen coming: a group of oil and gas producers asking lawmakers to increase taxes. The group in Oklahoma formed an alliance to ask lawmakers increase the gross production tax back to 7 percent, saying the industry is committed to helping solve the state’s budget crisis. According to KFOR-TV4, the Oklahoma Energy Producers Alliance plans to ask lawmakers to get rid of a generous tax cut on oil and natural gas production that was approved in 2014.
Calling it an issue for the states, a U.S. judge this week dismissed a lawsuit filed against Oklahoma energy companies by the Sierra Club over earthquakes. The suit filed last year named Chesapeake Energy, Devon Energy and New Dominion, saying they violated federal waste management laws by operating disposal wells that contributed to earthquakes in the state. But Judge Stephan Friot said earthquake regulation should be left in the hands of state agencies and courts. He noted that state regulators have the technical expertise, and have already responded to the spike in quakes through new regulations for the patch.
TexNet, the program installing 55 new earthquake sensors all over Texas, is in quite a funding battle in Austin, after the two-year price crash is making things tough in the state’s budget circles. According to the Houston Chronicle, the Legislature financed the start of the program two years ago. Industry leaders and state regulators said they saw no causal relationship between earthquakes and energy production and wanted more data. Researchers will finish installing the seismometers this year. But the Bureau of Economic Geology at the University of Houston says it will have a hard time funding the accompanying research if the Legislature doesn’t fund it. The newspaper says TexNet is far from re-funded, but that it has some champions. Rep. Drew Darby, a Republican from the oil and gas lands just east of Midland, was expected to introduce a bill on Monday to make TexNet part of the bi-annual budget, to be considered for funding every year.
The BBC reports seeing evidence that top executives at Shell knew money paid to the Nigerian government for a vast oil field would be passed to a convicted money-launderer. It also had reason to believe that money would be used to pay political bribes. The deal was concluded while Shell was operating under a probation order for a separate corruption case in Nigeria. Shell said it did not believe its employees acted illegally.
Reuters says the jury is still out on whether OPEC can rein in a global oil glut but top commodity traders are betting it can, by selling stakes in storage tank businesses that profited from oversupply. Since January, Glencore, Vitol and Gunvor have completed or have been seeking to sell parts of their holdings in storage firms.
Data obtained by The Associated Press shows tens of thousands of safety defects were found when government inspectors checked the rail lines used to haul volatile crude oil across the country. The defects included rails that were worn, bolts that were broken or loose or missing, and steel bars that had cracks. Such defects are no uncommon, but have drawn increased attention because of increase US production
BP boss Bob Dudley has seen his pay package cut by 40 per cent as a consequence of an outcry from shareholders at last year’s annual general meeting. Ahead of this year’s meeting next month, the oil giant revealed that Dudley’s pay was reduced from nearly $19 million in 2015 to $11.6 million last year. Nearly 60 per cent of BP’s shareholders revolted against the chief executive’s pay package last year, which came to light as the group suffered losses not seen for 20 years amid tumbling oil prices.
