Falling Oil Prices

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  1. BP sanctions Mad Dog Phase 2 project

    Offshore staff HOUSTON – BP has approved the $9-billion Mad Dog Phase 2 project in the deepwater Gulf of Mexico . Mad Dog Phase 2 will include a new floating production platform with the capacity to produce up to 140,000 b/d of crude oil from up to 14 production wells. Oil production is expected to begin in late 2021. The second Mad Dog platform will be moored about 6 mi (10 km) southwest of the existing Mad Dog platform , which is located in 4,500 ft (1,372 m) of water about 190 mi (306 km) south of New Orleans. The current platform has the capacity to produce up to 80,000 b/d of oil and 60 MMcf/d of natural gas. In 2013, BP (operator with 60.5% working interest) and co-owners, BHP Billiton (23.9%) and Union Oil Company of California, an affiliate of Chevron U.S.A. Inc. (15.6%), decided to re-evaluate the project after an initial design proved too complex and costly. Since then, BP has worked with co-owners and contractors to simplify and standardize the platform’s design, reducing the overall project cost by about 60%. Today, the $9-billion project, which also includes capacity for water injection, is projected to be profitable at or below current oil prices. Bob Dudley, BP Group CEO, said: “This announcement shows that big deepwater projects can still be economic in a low price environment in the US if they are designed in a smart and cost-effective way. “It also demonstrates the resilience of our strategy which is focused on building on incumbent positions in the world’s most prolific hydrocarbon basins while relentlessly focusing on value over volume.” While BP has reached a final investment decision on Mad Dog Phase 2 , BHP Billiton and Chevron are expected to make a final investment decision in the future. BP discovered the Mad Dog field in 1998 and began production there with its first platform in 2005. Continued appraisal drilling in the field during 2009 and 2011 doubled the resource estimate of the field to more than 4 Bboe, spurring the need for another platform at the field. Richard Morrison, president of BP’s Gulf of Mexico business, said: “Mad Dog Phase 2 has been one of the most anticipated projects in the US deepwater and underscores our continued commitment to the Gulf of Mexico. “The project team showed tremendous discipline and arrived at a far better and more resilient concept that we expect to generate strong returns for years to come, even in a low oil price environment.” BP says it plans to add about 800,000 boe/d of new production globally from projects starting up between 2016 and 2020. 12/01/2016

    Online Articles

    Online Articles

    Thu, 1 Dec 2016

  2. OGUK: Major tax changes urgently needed

    Oil & Gas UK said falling oil prices are creating an urgent need for fundamental changes to the tax regime.

    Article

    Article

    Tue, 13 Jan 2015

  3. Analyst finds NOCs are ready for market moves

    Douglas-Westwood has analyzed 15 major upstream companies to understand prospects for the industry should there be a near-term upswing in oil prices.

    Online Articles

    Online Articles

    Mon, 14 Nov 2016

  4. Oil and Gas: Royal Dutch Shell says 3Q earnings rose 18 percent

    Royal Dutch Shell says third-quarter earnings rose 18 percent, boosted by increased production after the acquisition of BG Group.

    Online Articles

    Online Articles

    Tue, 1 Nov 2016

  1. Oil and Gas: CEO: Pemex back on solid financial footing in 2019

    Online Articles

    Online Articles

    Fri, 4 Nov 2016

  2. Oil & Gas News: Technip has strong third quarter

    A robust operational performance associated with strong cost reduction measures enabled Technip to record a solid third quarter including an adjusted margin on recurring oil & gas operations nearing 10%.

    Online Articles

    Online Articles

    Thu, 27 Oct 2016

  3. Oil and Gas News: CNOOC Limited Announces Key Operational Statistics for Q3 2016

    For the third quarter of the year, the Company achieved total net production of 117.7 million BOE, representing a decrease of 7.7% YoY, mainly due to the decline of production volume in oil and gas fields and weak demand in the domestic downstream gas market.

    Online Articles

    Online Articles

    Wed, 26 Oct 2016

  4. Oil & Gas UK urges intervention to halt North Sea spending slump

    Oil & Gas UK has written to Britain’s Chancellor asking him to use his forthcoming Autumn Statement to introduce measures to boost investment in North Sea E&P.

    Online Articles

    Online Articles

    Mon, 14 Nov 2016

  5. Falling oil prices could lead consumers to spend more later

    Sinking oil prices have cratered the stock market. But a silver lining could appear eventually.

    Online Articles

    Online Articles

    Fri, 22 Jan 2016

  6. Falling oil prices could hurt Canada's O&G sector, S&P report says

    Overall, Standard & Poor's Ratings Services believes that the outlook for the Canadian midstream, unregulated power, and regulated utilities sectors is stable heading into 2015. However, in a report released Dec. 17, Standard & Poor's notes that falling oil prices could challenge growth in the oil ...

    Online Articles

    Online Articles

    Wed, 17 Dec 2014

  7. DW: Sustained low oil price sinks deepwater projects, with 2016-2020 deepwater spend to total $137B

    Douglas-Westwood (DW) forecasts deepwater expenditure to total $137 billion between 2016 and 2020. This represents a 35% decline compared to DW’s previous edition of the deepwater forecast issued March 2015.

    Online Articles

    Online Articles

    Tue, 8 Mar 2016

  8. Wood Mackenzie: Low oil price accelerating decommissioning in the UKCS

    A high oil price has enabled operators to extend field life and delay decommissioning time and time again on the UK Continental Shelf; however, the current low oil price has brought into stark relief that this cannot continue indefinitely, concludes a new analysis by Wood Mackenzie.

    Online Articles

    Online Articles

    Wed, 9 Sep 2015

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