Oil Production And Refining

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  1. Cenovus lifts 2017 capital budget by 24%, to resume Christina Lake expansion

    Cenovus Energy Inc. , Calgary, in 2017 plans to invest $1.2-1.4 billion, a 24% increase compared with the firm’s forecast capital spending for 2016. The budget includes capital for construction of the Phase G expansion at its Christina Lake oil sands project , resumption of which is planned for the first half. Cenovus says it has reworked the construction plan and rebid contracts for the project to reduce costs since deferring Phase G in late 2014 because of declining crude oil prices . After realizing more than $500 million in project cost savings, the firm anticipates the expansion can be completed with go–forward capital investment of $16,000-18,000/flowing barrel. Phase G is about 20% complete and has an approved design gross capacity of 50,000 b/d. Production startup from the expansion is expected in second-half 2019. The firm also continues to advance its portfolio of regulatory-approved oil sands projects, intending to spend capital to progress engineering work on deferred projects at Foster Creek and Narrows Lake. Cenovus’s total oil sands capital budget for the year ahead includes $300-350 million for Christina Lake, $325-375 million for Foster Creek, and $60-90 million for emerging oil sands projects. Oil sands to boost company output In 2016, Cenovus completed work on two new expansion projects, increasing its oil sands production capacity by 26% to 390,000 b/d gross, of which 195,000 b/d is net to Cenovus. Christina Lake Phase F, which includes a 100-Mw cogeneration plant, began production last month, with ramp-up expected over 12 months. Production from Foster Creek Phase G started up early in the third quarter, and also is expected to ramp up over 12 months. In recent weeks, Christina Lake has been producing about 92,000-98,000 b/d net, while Foster Creek has been producing 80,000-85,000 b/d net. Over the long term, Cenovus continues to target oil sands production at 90-95% of design capacity. In 2017, as the expansions at Christina Lake and Foster Creek continue, Cenovus plans to increase its oil sands production by 20% compared with its forecast 2016 production. Total oil production , including oil sands and conventional combined, is forecast to increase 14% compared with the company’s 2016 forecast. Conventional oil production is forecast to decrease 4%, largely due to expected natural declines. The firm anticipates incremental production from the Palliser drilling program will offset some of those declines, with the greatest impact expected in 2018. Cenovus plans a targeted drilling program on Palliser block in southern Alberta where it has “a large inventory of highly attractive short-cycle tight oil opportunities.” The firm says it has identified 700 drilling locations to date with high-return potential. It plans to spend $160 million in the year ahead to drill about 50 horizontal development wells and 60 stratigraphic wells at Palliser. Cenovus now expects its long-term oil sands sustaining capital to be close to $7/bbl, about 50% lower than in 2014. The firm intends to cover all of its 2017 sustaining capital costs as well as its dividend with a West Texas Intermediate oil price of $45-50/bbl. With integration remaining an important part of the company’s overall strategy, the firm plans to invest $210-240 million in its refining and marketing business in 2017. The capital is primarily for scheduled maintenance and reliability work at the Wood River and Borger refineries in the US that Cenovus jointly owns with operator Phillips 66.

    Online Articles

    Online Articles

    Fri, 9 Dec 2016

  2. Oil and Gas: Weather affects oil pipeline spill cleanup in North Dakota

    A company with a history of oil field-related spills in North Dakota and Montana is being hampered by winter weather in its cleanup of a "significant" pipeline break that leaked crude oil into a tributary of the Little Missouri River in western North Dakota, a regulator said Thursday.

    Online Articles

    Online Articles

    Sat, 10 Dec 2016

  3. Oil & Gas News: Recent OPEC agreement reflected in EIA forecast issued earlier this week

    In EIA’s December Short-Term Energy Outlook (STEO), both the West Texas Intermediate and Brent crude oil 2017 price forecasts increased by about $1 per barrel (b) from the November STEO, with prices expected to average $51/b and $52/b, respectively.

    Online Articles

    Online Articles

    Sat, 10 Dec 2016

  4. MARKET WATCH: NYMEX front-month oil futures price hovers at $50-51/bbl

    The US light, sweet crude oil futures contract for January delivery jumped by about $1 to settle at nearly $51/bbl on the New York market Dec. 8. Analysts said oil prices appeared to be holding fairly steady in early Dec. 9 trading pending a Dec. 10 meeting of producers.

    Online Articles

    Online Articles

    Fri, 9 Dec 2016

  1. Oil and Gas: Iraq prime minister says his country will cut oil production

    Online Articles

    Online Articles

    Wed, 30 Nov 2016

  2. Oil Refinery : Refinery in Italy erupts in flames, no injuries reported

    Italian oil company Eni says a fire erupted in a refinery in Pavia province south of Milan, and that the flames were being extinguished. There were no immediate reports of injuries.

    Online Articles

    Online Articles

    Fri, 2 Dec 2016

  3. Platform damage halts Maari oil production offshore New Zealand

    Production from the Maari oil production platform offshore Taranaki basin in New Zealand has been halted after a 1.4-m crack was found in one of the 12 horizontal struts.

    Online Articles

    Online Articles

    Mon, 28 Nov 2016

  4. Hochstein outlines how world energy changed during Obama’s presidency

    President-elect Donald J. Trump’s incoming administration almost certainly will get a dramatically different world energy assessment than President-elect Barack Obama’s did 8 years earlier, the US Department of State’s special envoy for energy resources expects.

    Online Articles

    Online Articles

    Tue, 6 Dec 2016

  5. Video: Oil production drilling started on Mariner

    Up to five wells will be drilled before the Mariner A platform hook up and commissioning activity starts next summer. First oil is expected to be produced from Mariner in 2018.

    Online Articles

    Online Articles

    Sat, 3 Dec 2016

  6. Vietnam oil imports drop 19.9 percent in 2013

    Vietnam's oil imports dropped 19.9 percent in 2013 while domestic oil production rose.

    Online Articles

    Online Articles

    Wed, 22 Jan 2014

  7. Oil and Gas: North Dakota oil production continues slide in September

    North Dakota's oil production decreased by more than 10,000 barrels a day in September.

    Online Articles

    Online Articles

    Fri, 18 Nov 2016

  8. Oil and Gas: OPEC agrees to cut output to push up oil price

    OPEC has agreed to cut its oil production for the first time in eight years, ending a strategy of high supply that had aimed to cripple the U.S. energy industry but also led to decade-low prices and drained the budgets of crude-producing nations.

    Online Articles

    Online Articles

    Thu, 1 Dec 2016

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