Posts Tagged “texas”

oil barrel

The Permian increased production faster than expected in October and is projected to grow by nearly 40,000 barrels more than previously estimated, the Energy Department said. By the end of the month, output from the prolific shale play is expected to be just shy of 3.5 million barrels a day.

In November, the Energy Department expects Permian production to grow by another 53,000 barrels a day, putting oil production at 3.55 million barrels a day.

The Permian has faced pipeline constraints as production has outpaced pipeline capacity. Three major projects with a total crude capacity of more than 2 million barrels a day are under construction from West Texas to Gulf Coast markets and export hubs. They are expected to be completed by early 2020.

Estimates of oil production in South Texas’ Eagle Ford Shale for October were revised down by more than 25,000 barrels a day, from near 1.45 million barrels a day to 1.42 million barrels a day. Oil production is expected to grow by 15,000 barrels a day in November, inching close to 1.44 million barrels a day.

Drilled but uncompleted wells, which are wells that oil and gas explorers have drilled but haven’t used hydraulic fracturing or fracking to produce oil and gas, continued to increase. The Permian added 194 such wells from August to September, increasing the total number to 3,722. The Eagle Ford added 18 drilled but uncompleted wells to its inventory, which rose to 1,584 wells.

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oil price chart

oil price chart

Encana Corp., the Canadian oil and natural gas producer, is selling about $1 billion of shares to fund drilling in Texas next year and repay debt.

The company agreed to sell 107 million shares at $9.35 apiece through underwriters led by units of Credit Suisse Group AG and JPMorgan Chase & Co., Calgary-based Encana said in a statement on Monday after the close of regular trading on North American markets. An additional 16.05 million shares can also be purchased, as part of the deal.

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marine terminal

marine terminal

Magellan Midstream Partners, L.P. announced recently their plans that include constructing a new high-capacity marine terminal located in the Houston Ship Channel in Pasadena, Texas. It will handle all sorts of refined petroleum products, including various grades of gasoline and diesel fuel, and renewable fuels. This new terminal will be built on almost  200 acres of land that were recently acquired.

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