Exxon Mobil Corp. announced Oct. 18 that it has acquired a crude oil terminal in Wink, Texas from Genesis Energy LP. The terminal is in the rapidly growing Delaware Basin, part of Permian Basin—one of the most prolific plays in the U.S.

The terminal is strategically positioned to handle Permian Basin crude oil and condensate for transport to Gulf Coast refineries and marine export terminals. The facility is interconnected to the Plains Alpha Crude Connector pipeline system and is permitted for 100,000 barrels per day of throughput with the ability to expand.

Source: Daily Dose of News


DALLAS—CEO Tony Sanchez unabashedly admits the good and bad of Sanchez Energy Corp.’s (NYSE: SN) deal history—the luck, the mistakes and the audacity of assets bought, sold or overlooked.


The Houston-based company has taken risks while making a point to avoid a cash flow catastrophe by acquiring assets that immediately make money.


“We like to buy assets that we can protect our downside, and that comes in the form of a lot of producing wells with stable production cash flow, to underpin our analysis,” Sanchez told an audience at Oil and Gas Investor’s A&D Strategies and Opportunities conference.

“So, if we are wrong, we have production to back us up.”


In contrast, the rash of Permian Basin deals that have commanded the oil industry’s attention has been acquisitions for undeveloped acreage. Only some included production of more than 10,000 barrels of oil equivalent per day (boe/d), according to Moody’s Investors Service.


Source: Daily Dose of News

HOUSTON—Differing cost structures between the U.S. and OPEC oil markets have been significant in causing the two to move in opposing paths, according to Ashley Petersen, senior oil market analysts at Stratas Advisors, who spoke with Hart Energy following the recent “The Bull Returns – Where Do Oil Markets Go From Here?” webinar.

Petersen added that while U.S. producers are basically producing at will OPEC has stuck to following its supply deal. Despite U.S. producers having fewer export constraints now, she said, exporting crude will eventually be more challenging and expensive for the U.S. than for OPEC.

Cost constraints, including the rising costs for fracturing crews, sand, fluids and rigs, are problems the U.S. market faces due to producers primary use of large-scale hydraulic fracturing, Petersen said.

Source: Daily Dose of News

Saudi Aramco is considering shelving plans for an international public offering in favor of a private share sale to the world’s biggest sovereign wealth funds and institutional investors.

Talks about a private sale to foreign governments—including China—and other investors have gathered pace in recent weeks, according to five people familiar with the IPO preparations, amid growing concerns about the feasibility of an international listing.

The Saudi state oil company has struggled to select a suitable international venue for its shares, as New York and London have vied for what has been billed as the largest ever flotation.

Source: Daily Dose of News

DALLAS–Oil prices likely have two strong quarters ahead but, like natural gas, crude is essentially range-bound in the near term, Anthony Yuen, global energy strategist for Citigroup, said Oct. 12 at Oil and Gas Investor’s A&D Strategies & Opportunities Conference.

Citigroup forecast fourth-quarter 2017 Brent prices at $58 per barrel (bbl) and West Texas Intermediate (WTI) at $54—a divide that U.S.-based E&Ps have previously taken advantage of in the global export market. After that, prices will decline, Yuen said.

Additionally, NGL prices will continue to fluctuate greatly due to the tug-of-war between supply and demand, he said.

“NGL is something that we like a lot, but it is a market where you cannot control your own destiny,” he said. NGL pricing varies greatly because they’re dependent on oil and gas fundamentals for supply and while Asian and European fundamentals govern demand.

“It’s not really controlled in the U.S.,” he said. “So that’s why we see a lot of volatility and also how we’ve seen propane prices really shoot up 30% or more in just two months.”

Source: Daily Dose of News