Where the Falling Prices Affect Jobs

At the time of authoring this article, WTI for December 2015 last traded at $52.89 which is – $0.76 from prior settle. Should the futures hold, we are not expecting to rise above $50.00 until September. Along with this, according to a study by Oil & Gas Journal, currently planned capital expenditures for US producers is expected to drop 17% to $571 billion with an expected West Texas intermediate price of $70.00/bbl. However, the timeline to maintain or achieve a return to that pricing differs from company to company and leadership in many organizations may continue to recalculate additional expenditure cuts until pricing stabilization or sustained return to the WTI price which budgets were originally based against. [Read more…]

Oil pricing: Is this a ‘new normal’?

After three years of US$100-plus crude prices, some in the energy industry were caught off-guard when prices declined by 40 percent in the fourth quarter of 2014.
A glut of supply – including record production from unconventional development in the US – and slow-growing demand put a quick downward pressure on prices.
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Cure for Industry Hiccups: Congressional Action

While OPEC (Organization of the Petroleum Exporting Countries) and Saudi Arabia hope to have delivered a fatal blow to the American oil and gas industry in the form of unflagging production levels despite the current glut of oil on the market, the reality is more akin to a hiccup.
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BOEM Increases Cap on Offshore Oil Spill Liability to $134 Million

On December 12, 2014, the Bureau of Ocean Energy Management (BOEM), an agency within the Department of the Interior, published a final rule increasing the cap on responsible parties’ liability for discharges of oil from offshore facilities under the Oil Pollution Act of 1990 (OPA) to $133.65 million. The rule, effective January 12, 2015, almost doubles the previous limit of $75 million.
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