Tuesday, April 29, 2025
Monday, April 28, 2025
California’s New Oil Drilling Permits Drop From Thousands to Dozens per Year
cGowen said.
Friday, April 25, 2025
Thursday, April 24, 2025
Wednesday, April 23, 2025
Tuesday, April 22, 2025
Chevron, TotalEnergies begin oil production at Ballymore project in deepwater Gulf
https://worldoil.com/news/2025/4/21/chevron-totalenergies-begin-oil-production-at-ballymore-project-in-deepwater-gulf/?oly_enc_id=1027J2600390B9V
(WO) — Chevron Corp. has started oil and natural gas production from the Ballymore field, a deepwater subsea tieback in the Gulf of Mexico/Gulf of America.
The project, located about 160 miles southeast of New Orleans in the Mississippi Canyon area, is Chevron’s first development in the Norphlet trend. Ballymore connects three production wells to the existing Blind Faith facility, eliminating the need for a new offshore platform.
Chevron said Ballymore is expected to produce up to 75,000 gross barrels of oil per day, contributing to the company’s goal of reaching 300,000 net barrels of oil equivalent per day from the Gulf by 2026.
“Ballymore is an example of how we are leveraging technology and driving efficiencies to help produce affordable, reliable energy from the deepwater Gulf of America, one of the lowest carbon intensity oil and gas producing basins in the world,” said Brent Gros, vice president, Chevron Gulf of America. “Ballymore, which was completed on time and on budget, brings additional production online without building a new standalone offshore platform. This reduces our development costs and is expected to drive higher returns for shareholders.”
The Ballymore field holds an estimated 150 million barrels of oil equivalent in potentially recoverable resources over its project life. The development sits in about 6,600 feet (2,000 meters) of water.
Chevron, through its subsidiary Chevron U.S.A. Inc., operates the project with a 60% working interest. TotalEnergies E&P USA, Inc. holds the remaining 40%.
Ballymore is the latest in a series of Gulf of Mexico/Gulf of America startups for Chevron. Since mid-2024, the company has brought online its Anchor and Whale projects, while ramping up water injection operations at its Tahiti and Jack/St. Malo fields to enhance production.
Monday, April 21, 2025
U.S. natural gas production remained flat in 2024, EIA finds
U.S. marketed natural gas production remained relatively flat in 2024, growing by less than 0.4 billion cubic feet per day (Bcf/d) compared with 2023 to average 113 Bcf/d, according to our latest Natural Gas Monthly. Production growth in the Permian was offset by declining production in the Haynesville and relatively flat production in Appalachia.
EIA’s Short-Term Energy Outlook breaks out U.S. Lower 48 (L48) marketed natural gas production data for the Appalachia, Bakken, Eagle Ford, Haynesville, and Permian regions and also includes Alaska and Gulf of America/Gulf of Mexico production data. The Appalachia, Permian, and Haynesville regions produce the most, accounting for around two-thirds of total U.S. natural gas production combined.
In 2024, more natural gas was produced in the Appalachia region of the Northeast than in any other U.S. region, accounting for 31%, or 35.6 Bcf/d, of marketed natural gas production. Production growth in the Appalachia region has been slowing in recent years because of limited pipeline takeaway capacity to transport natural gas to demand markets. In 2024, Appalachian production rose slightly by 0.1% (0.50 million cubic feet per day) and in 2023 Appalachian production grew by 0.9 Bcf/d. Historically low Henry Hub prices contributed to the muted growth in Appalachia in 2024. The Henry Hub spot price averaged $2.21 per million British thermal units (MMBtu) in 2024, the lowest average annual Henry Hub price ever reported and 16% lower than the 2023 annual average.
The Permian region in Texas and New Mexico accounted for 22% of the marketed natural gas production in the United States in 2024 and accounted for almost all the growth in U.S. production. In 2024, marketed natural gas production in the Permian rose by 12%, or 2.7 Bcf/d, to average 25.4 Bcf/d.
In the Permian region, growth in natural gas production is primarily the result of associated gas produced during oil production. West Texas Intermediate (WTI) crude oil prices averaged $77/b in 2024, high enough to support oil-directed drilling in the Permian region. The average breakeven price for new wells ranged between $62 per barrel (b) and $64/b in the Permian Midland Basin and the Permian Delaware Basin, two of the largest basins in the Permian, according to data from a Dallas Fed Energy survey.
In 2024, production in the Haynesville region, which spans Louisiana and Texas, averaged 14.6 Bcf/d, 11% less than the 2023 annual average. Natural gas production in the Haynesville declined last year as producers decreased drilling activity because of historically low natural gas prices. Producers averaged 37 active rigs per month in the Haynesville in 2024, compared with 57 active rigs in 2023. The higher relative cost to produce natural gas in the Haynesville region played a role in reducing rig activity and in the decline in average annual production in 2024 compared with 2023.
Natural gas production costs depend on many factors, including the cost of drilling wells. The Haynesville formation is between 10,500 feet to 13,500 feet deep, which is much deeper than other formations. By comparison, wells in the Marcellus in the Appalachia region are on average 4,000 feet to 8,500 feet deep. Because drilling deeper wells in the Haynesville is more expensive than drilling wells in the Marcellus and other shale plays, natural gas prices have to be relatively higher to make drilling economical.
Sunday, April 20, 2025
Friday, April 18, 2025
Thursday, April 17, 2025
Wednesday, April 16, 2025
Tuesday, April 15, 2025
Monday, April 14, 2025
bp discovers oil at Far South prospect, deepwater U.S. Gulf
bp today announced an oil discovery at the Far South prospect in the deepwater U.S. Gulf of America/Gulf of Mexico.
bp drilled the exploration well in Green Canyon Block 584, located in western Green Canyon approximately 120 miles off the coast of Louisiana in 4,092 feet of water. The well was drilled to a total depth of 23,830 feet. The Far South co-owners are bp (operator, 57.5%) and Chevron U.S.A. Inc. (42.5%).
Both the initial well and a subsequent sidetrack encountered oil in high-quality Miocene reservoirs. Preliminary data supports a potentially commercial volume of hydrocarbons.
This discovery in the deepwater Gulf of America/Gulf of Mexico underscores how bp is in action to step up investment in exploration and strengthen its upstream portfolio under the strategy reset announced in February 2025.
“This Far South discovery demonstrates that the Gulf of America remains an area of incredible growth and opportunity for bp,” said Andy Krieger, Senior Vice President, Gulf of America and Canada. “Our Gulf of America business is central to bp’s strategy. We are focused on delivering more affordable and reliable energy from this region, building our capacity to over 400,000 barrels of oil equivalent per day by the end of the decade.”
bp expects to grow its global upstream production to 2.3 – 2.5 million barrels of oil equivalent in 2030, with the capacity to increase production out to 2035. Around 1 million barrels of oil equivalent per day (boed) are expected to be delivered from the U.S. onshore and offshore regions by 2030.
Friday, April 11, 2025
Thursday, April 10, 2025
Wednesday, April 9, 2025
Tuesday, April 8, 2025
Ghana’s Petroleum Commission to outline upstream investment opportunities
Striving to increase production and reverse natural declines in mature oilfields, Ghana is promoting new investment across its upstream oil and gas sector. The country – through national upstream regulator the Petroleum Commission of Ghana – is embarking on a series of industry reforms that aim to strengthen the operating environment for oil and gas companies. These efforts are expected to translate into heightened exploration, as companies pursue play-opening discoveries in Ghana’s on- and offshore market.
The Petroleum Commission of Ghana will outline the country’s exploration opportunities during the Invest in African Energies: Accra Investor Briefing – taking place next week. Victoria Emeafa Hardcastle, CEO of the Petroleum Commission, is speaking at the event, sharing insight into regulatory reforms, untapped exploration prospects and strategies being implemented to bolster production.
Policies such as the Gas Master Plan stand to transform the country from an oil-reliant market into a diverse and integrated economy
With 17 oil and gas projects scheduled for development by 2027, Ghana is making strides towards unlocking its 1.1 billion barrels of crude reserves and 2.1 trillion cubic feet of gas. The Petroleum Commission regulates and manages the utilization of petroleum resources in Ghana, coordinating policies across the country’s upstream sector. Both existing and new policies are expected to support industry growth, particularly in emerging sectors such as natural gas. Notable policies include the Gas Master Plan, a framework for investing in the country’s gas value chain. The plan outlines a development strategy through 2040, incentivizing capital and technology deployment by offering clear terms and objectives.
The plan has already incentivized major projects. The Tema FLNG project, for example, is under development in Accra. The facility comprises the requisite infrastructure to import, store, re-gasify and deliver LNG to off-takers in the Greater Accra Area. Operated by Helios Investment Partners, the $350 million plant has a capacity of 1.7 million tons of gas per year. Additionally, the Atuabo II Gas Processing plant – an expansion of the operating Atuabo facility – is on track for production in 2025. The second phase has a capacity of 150 million standard cubic feet per day (mmscf/d), with opportunities to increase output two-fold, reaching 300 mmscf/d in future phases. The plant will be capable of producing propane, butane and pentane condensates and is being built at a cost of $700 million.
In the oil sector, the Petroleum Commission continues to attract investments in exploration, promoting undeveloped blocks in both on- and offshore basins. Following the success of the country’s biggest oilfields – Jubilee and TEN – the country is inviting partners to unlock the potential of adjacent blocks. Engagement with global partners and regional firms have already begun to yield positive results. Tullow Oil brought three new wells onstream at the Jubilee South East project in Q1, 2024, and will drill one producer and one injector well at the Jubilee field in 2025. The company is also advancing a 4D seismic survey at both Jubilee and TEN. Additionally, the Ghana National Petroleum Corporation will drill an exploration well in the Voltaian Basin in 2025.
“Ghana’s approach to developing its oil and gas industry must be commended," said NJ Ayuk, Executive Chairman, African Energy Chamber. "The country is not only instituting reforms in tax and policy, but working closely with international operators to strengthen the attractiveness and competitiveness of their investments. Policies such as the Gas Master Plan stand to transform the country from an oil-reliant market into a diverse and integrated economy."
Image: TEMA LNG terminal, Ghana
Diamondback exec calls out Trump as tariff concerns mount for U.S. shale industry
(Bloomberg) – A top executive at Diamondback Energy Inc. called on President Donald Trump’s administration to explain how the global trade war will help shale producers, a rare instance of public pushback from a U.S. oil boss.
“This administration better have a plan @SecretaryWright,” Kaes Van’t Hof, president of Diamondback, said April 6 in a post on X. He added that U.S. shale is “the only industry that actually built itself in the U.S., manufactures in the U.S., grew jobs in the U.S. and improved the trade deficit (and by proxy GDP) in the U.S. over the last decade … smart move.”
A spokesperson for the Energy Department didn’t immediately respond to a request for comment. Van’t Hof declined to comment beyond the X post.
His comments are among the first public statements from an executive in the shale patch since Trump announced additional tariffs on countries around the world. Industry bosses delivered scathing, anonymous, opinions on the administration’s energy agenda in last month’s Federal Reserve Bank of Dallas survey.
West Texas Intermediate, the U.S. oil benchmark, has fallen more than 15% since Thursday to trade near $60 a barrel. That’s well below the $65 threshold that many companies need to profitably drill new wells in Texas and surrounding states, according to the Dallas Fed survey.
Diamondback, which last week closed on its $4.2 billion acquisition of closely held Double Eagle, is the biggest independent oil producer in the Permian Basin of West Texas and New Mexico. Van’t Hof will take over as CEO at Diamondback’s annual meeting this year.
Monday, April 7, 2025
OPEC+ committee reiterates need for oil output quota compliance
(Bloomberg) – Key OPEC+ nations reiterated the need for members to stick to oil output quotas after the group’s surprise decision to speed up an output revival battered crude prices.
The Joint Ministerial Monitoring Committee noted that some OPEC+ members failed to fully observe their limits or deliver extra curbs pledged as compensation for over-producing, according to a statement on the group’s website on Saturday. These nations were told to submit compensation plans by April 15.
Led by Saudi Arabia and Russia, the OPEC+ alliance stunned oil traders last week by announcing it would accelerate plans to revive halted supplies next month, with an increase triple the size originally scheduled. Delegates privately said the shock move was intended to instill better discipline among members like Kazakhstan and Iraq.
See also: OPEC+ shocks oil market with plans to boost output, driving down prices
The decision on Thursday, unveiled just hours after President Donald Trump’s barrage of tariffs sent financial markets into meltdown, compounded losses in crude futures, which tumbled the following day to a four-year low.
The JMMC is next due to meet on May 28, the same day that the OPEC+ alliance is set to hold its next full ministerial meeting. The subset of nations engaged in supply restraints will make a decision on June output on May 5.
Friday, April 4, 2025
OPEC+ shocks market with plans to boost oil supply, driving down prices
(Bloomberg) – For most of this decade, the OPEC+ alliance has been the world’s most stalwart defender of high oil prices. In just a few moments this week, that role reversed dramatically.
In a video conference on Thursday, the coalition of crude producers led by Saudi Arabia and Russia was expected to simply remind errant members to respect their output limits, ahead of rubber stamping its existing plan to gradually raise production.
Instead they delivered a major shock — increasing supply by three times the planned amount in May in what delegates described as a deliberate effort to drive down prices to punish the group’s cheats.
After many months of excess production from Kazakhstan and Iraq, Saudi Energy Minister Prince Abdulaziz bin Salman reached the limit of his patience, delegates said, asking not to be identified because the talks were private. The larger-than-expected May output hike would just be an “aperitif” if those countries didn’t improve their performance, the prince said on the call.
Prince Abdulaziz’s gambit — a marked break from years of urging OPEC+ to remain cautious in adding supplies — illustrates the toll taken on the alliance as its effort to balance global oil markets drags on far longer than initially envisioned. For some observers, it stirs echoes of the price war that briefly erupted between OPEC+’s leaders during the 2020 pandemic.
Crude was already reeling from the onslaught of trade tariffs announced by U.S. President Donald Trump the previous day, and the surprise addition of 411,000 barrels a day by OPEC+ in May turbo-charged the rout. Brent futures sank as much as 7.3%, the most in two years, to below $70 a barrel.
The timing of the announcement by the Organization of the Petroleum Exporting Countries and its allies seemed unlikely to be a coincidence, and group delegates and crude traders alike speculated that Riyadh deliberately sought to maximize the bearish effect.
Astana has infuriated Riyadh by ramping up output at a new project to expand its giant Tengiz oil field, in partnership with international majors like Chevron Corp. Even as the country pledged to conform better with its OPEC+ limits, in February its output was a hefty 300,000 bpd above target.
Iraq, another habitual quota cheat, has reduced output closer in line with its quota in recent months, but has shown little sign of making the compensation cuts it promised to atone for past over-production.
While delegates said they were surprised at the outcome of what was supposed to be a routine conference call, they were supportive of measures to end cheating and everyone backed the proposal from Saudi Arabia and Russia to make a larger supply hike in May.
“This is about coaxing Kazakhstan and Iraq to improve their compliance in a balanced way,” said Bob McNally, president and founder of Rapidan Energy Advisers LLC and a former White House energy official.