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Oil & Gas Journal

The analysts said: "Another takeaway from the conference was that the improved application and evolution of oil field technologies was making a real difference for [exploration and production] economics. The most obvious example of this has been the emergence of the 'shale' plays in North America over the past 5 years. Operators are now using technologies that were mostly developed offshore decades ago to improve US land economics and unlock reservoirs that were previously uneconomic. These increases in efficiency through technological advances should keep activity oil field booming for years to come, even if oil and gas prices retreat from current levels. Finally, the oil patch has truly become global in nature as many of the represented oilfield companies were not based in the US. The Chinese in particular have made a strong push on the lower-end equipment side."

Energy prices
The June contract for benchmark US light, sweet crudes jumped to an intraday record of $126.27/bbl May 9 on the New York Mercantile Exchange before closing at a record $125.96/bbl, up $2.27 for the day. The July contract gained $2.39 to $126/bbl. On the US spot market, WTI at Cushing, Okla., was up $2.27 to $125.97/bbl. Heating oil for June delivery climbed 12.62¢ to a record $3.64/gal on NYMEX. The June contract for reformulated blend stock for oxygenate blending (RBOB) advanced 6.34¢ to $3.20 gal.

The June natural gas contract climbed 27.4¢ to $11.54/MMbtu on NYMEX. On the US spot market, gas at Henry Hub, La., lost 3¢ to $11.29/MMbtu.

In London, the June IPE contract for North Sea Brent crude was up $2.56 to $125.40/bbl. The May gas oil contract soared by $38.75 to a record $1,192.50/tonne.

The office for the Organization of Petroleum Exporting Countries in Vienna was closed May 12 for a public holiday so new price information was not available.

Contact Sam Fletcher at samf@ogjonline.com.