U.S. Oilfield Service Providers are Filing for Bankruptcy

U.S. Oilfield Service Providers are Filing for Bankruptcy

U.S. oilfield service providers have endured plummeting oil prices and a global oversupply for two years. Now, firms are preparing for an expected turnaround in the industry by filing for bankruptcy. The slump in oil prices caused service providers, which haul water and drill wells, to downsize their workforces and extend deadlines for debt repayments. These measures were an effort to wait out the slump. Now that oil prices are beginning to recover, service providers are filing for Chapter 11 to offload their debt and start raising money to invest…

Oil Prices Soar on Monday as Production Cut Agreement Adds More Countries

Oil Prices Soar on Monday as Production Cut Agreement Adds More Countries

Oil prices skyrocketed on Monday on the news that additional countries have agreed to cut their oil production. Oil is up 6.5% to reach its highest level since mid-2015. The 18-month high comes as OPEC rivals join the agreement to reduce the global oversupply. Producers outside of OPEC also agreed to reduce oil output by 558,000 bpd. OPEC’s oil production cuts from non-members had a target of 600,000 per day. Russia led the pledge to cut oil, with the country reducing production by 300,000 barrels per day. OPEC agreed on…

Quebec Passes Bill to Expand Oil and Gas Exploration

Quebec Passes Bill to Expand Oil and Gas Exploration

Bill 106 will allow for more oil and gas exploration. The bill passed through the National Assembly 62-38 on Saturday after a lengthy debate. The legislation includes a clean energy plan for Quebec, with provisions allowing for energy exploration expanding and fracking being included in the plan. The bill, passed before the holiday break, is expected to help drillers, but has been criticized by environmentalists. Canadian company shares surged on hopes of the bill’s passage. Junex and Questerre, both based in Quebec, will benefit from the new legislation. Junex stock…

Crude Oil Up 1.3% to $51.50 a Barrel

Crude Oil Up 1.3% to $51.50 a Barrel

U.S. crude oil prices are up 1.3% on Friday amid optimism of a production cut from non-OPEC members. The group of non-members will meet in Vienna over the weekend to discuss joining the OPEC oil cut agreement. Crude benchmarks remain 2% lower than highs reached last month. Non-OPEC members will meet with OPEC oil ministers on Saturday. Production cut talks have been ongoing since oil prices dipped to less than half their price just two years ago. Iran’s sanction lift further fueled an oversupply, as the country feverishly drilled more…

Glencore, Qatar to Acquire $11.3bn Stake in Russia’s Rosneft

Glencore, Qatar to Acquire $11.3bn Stake in Russia’s Rosneft

A consortium formed by Qatar and Glencore PLC have purchased a 19.5% stake in Russia’s state-controlled oil company PAO Rosneft. The deal, valued at €10.5 billion ($11.3 billion), will provide Russia with much-needed cash, according to the Wall Street Journal. A transcript form the Kremlin’s website showed that Rosneft’s Chief Executive, Igor Sechin, and Russian President Vladimir Putin, discussed the deal Wednesday. Putin noted that the deal came as OPEC came to agreement to cut production. Russia will still maintain a controlling stake in the company. The UK’s BP PLC…

Mexico’s Offshore Oil Fields Attract Industry Leaders

Mexico’s Offshore Oil Fields Attract Industry Leaders

Mexico’s offshore oil fields attracted the international oil industry. The industry paid premiums for the right to drill in the Gulf of Mexico, indicating high expectations of an oil and natural gas rebound. OPEC and non-OPEC members are still in discussions to reduce the barrel per day (bpd) output by 1.2 million barrels to restore falling oil prices. Oil prices have lost over 50% of their value in the last 2 and a half years. Mexico’s Gulf has high geological potential. Exxon Mobil, Chevron and France’s Total all purchased blocks…

OPEC Deal to Cut Output Fuels Oil Rally

OPEC Deal to Cut Output Fuels Oil Rally

A rally in oil prices pushed the commodity to secure its best week in at least five years. Prices hovered above $51 per barrel after news of OPEC’s agreement to cut output and reverse a global glut that has caused prices to slump for more than two years. The market remained focused on how OPEC would implement the cuts. Russia and other non-OPEC producers are also expected to join the output cut agreement. Despite gains, crude is still under pressure after Moscow said it would use November’s record oil production…

Oil Prices Rise as OPEC Agrees to Limit Production

Oil Prices Rise as OPEC Agrees to Limit Production

OPEC has come to an agreement to limit oil production. The members all voted in favor of cutting production, leading to an oil rally.  The Wednesday agreement boosted investor sentiment on the commodity. Oil prices are down over 50% in two years. An oil cut agreement has been discussed in the past. Saudi Arabia, the top oil producer in OPEC, has fought to maintain current production levels in fear of losing market share to non-OPEC members. Iran has been a major cause of oil cut talks falling apart in the…

Nigeria’s Leader Sues Shell in UK for Oil Spill Damage

Nigeria’s Leader Sues Shell in UK for Oil Spill Damage

Nigerian leader Emere Godwin Bebe Okpabi is suing Royal Dutch Shell in a London court for decades of oil spills that have damaged the local water supply. The leader of Nigeria’s Ogale people displayed four bottles of water from his homeland to demonstrate why his people are suing the oil giant. A group of lawyers representing over 40,000 Nigerians are demanding that Shell take action to clean up their oil spills. Nigerians argue that the water is now contaminated with oil, benzene, and other cancer-causing compounds. The High Court began…

Obama Bans Gas, Oil Drilling in the Arctic for Five Years

Obama Bans Gas, Oil Drilling in the Arctic for Five Years

In a victory for environmentalists, President Obama has removed the Arctic Ocean from any new gas and offshore oil leasing for the next five years. Environmentalists say industrial activity in the Arctic is harmful to several marine animal species and exacerbates climate change. The administration’s five-year offshore drilling plan was announced on Friday, and prohibits the planned sale of drilling rights in the Chukchi and Beaufort seas near Alaska. Drilling is still permitted in Cook Inlet, southwest of Anchorage, Alaska. The plan also prohibits drilling in the Atlantic Ocean. President-elect…