ConocoPhillips Senior Vice President Dominic Macklon expects global oil demand to bounce back to 100 million barrels per day and even exceed that level, as oil will remain an "important part of the energy mix in any scenario." However, uncertainty will continue into 2021, and US shale production could drop by 4 million barrels per day in 2022, from about 8.2 million bpd at the start of 2020, Macklon predicted.
Declining costs for lithium-ion batteries will make electric vehicles and renewables more affordable and competitive with fossil fuels, adding to the challenges facing the oil and natural gas industry, according to a IHS Markit analysis. A lithium-ion battery cell is expected to cost as little as $73 per kilowatt hour by 2030 due to technology advances, greater efficiencies and competition.
Feed gas deliveries to US liquefied natural gas export facilities rose to about 6.1 billion cubic feet per day on Thursday, but demand has not yet returned to the 8.3 Bcf/d level reached before Tropical Storm Beta struck. A full recovery in activity may not materialize until Sempra Energy's Cameron LNG goes back online and Dominion Energy's Cove Point plant completes annual maintenance.
In a recent interview with Argus Media, Continental Resources Executive Chairman Harold Hamm said West Texas Intermediate oil prices in the $40 to $45 per barrel range are not high enough to encourage US shale drillers to boost production. Hamm also warned of a potential worker shortage when higher demand and prices lead to increases in oilfield activity, and expressed concern over the political implications of a Joe Biden victory in the November presidential elections.
California Gov. Gavin Newsom said Wednesday that he plans to work with the state legislature beginning next year on a phased elimination of new hydraulic fracturing permits by 2024, but there was no mention of steam fracking. About 2% of the state's oil production is extracted using hydraulic fracturing.
The oil and natural gas industry likely will make little use of 5G global wireless technology over the next five years as the industry limits overall investments, according to a report by Fitch Solutions Country Risk & Industry Research. The technology is capable of improving communications, decision making and automation, among other processes, Fitch Solutions analysts say.
China National Offshore Oil Corp. wants to sell its Scott platform and stakes in British North Sea oilfields, sources say. CNOOC owns stakes in the Scott, Telford and Rochelle fields and operates the Scott platform, which links to the Forties Pipeline System and St. Fergus gas terminal.
Geologists for an Australian gold-mining company have found a crater in Western Australia's Ora Banda that may have been created about 100 million years ago by a meteorite up to 200 meters wide. Geophysics consultant Jayson Meyers determined the crater, roughly 5 kilometers wide, contains shatter cones, which are formed when shock waves from a meteorite crash break up rocks.
Microscopic crystals called nanolites increase the viscosity of volcanic magma, leading to sudden and violent eruptions, a study says. Researchers, who analyzed nanolites in the ashes of active volcanoes, say the nano-sized crystals make it difficult for gases to escape and relieve pressure inside magma chambers.
Max Midstream is prepared to invest $1 billion to turn the Port of Calhoun in Texas into a crude oil export hub, with plans to connect the Seahawk pipeline and terminal it bought in December to pipelines that carry crude from the Permian Basin and Eagle Ford Shale, boost storage capacity to 15 million barrels by 2023, and deepen and widen the port to accommodate larger vessels. The first phase of the project could be complete in November, accommodating up to 140,000 barrels per day of oil exports.
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