MARKET WATCH
Crude futures price gain ends 5-day fall on NYMEX

Sam Fletcher
Senior Writer

HOUSTON, Oct. 10 -- With the start of the Northern Hemisphere heating season less than 4 weeks away and the Gulf of Mexico still slow to recover oil and natural gas production, crude futures prices increased slightly Oct. 7 after a 5-day losing streak.

The US Minerals Management Service reported Oct. 7 that crews evacuated ahead of hurricanes in September and October still had not returned to 6 drilling rigs and 274 platforms in the gulf. Shut-in production now totals 1.2 million b/d of oil, or 77.5% of normal output, and 6.4 bcfd of gas, or 64.4% of the usual production from those waters. Total Gulf of Mexico production lost since Aug. 26 through Oct. 7 totaled 50.1 million bbl of crude and 246.5 bcf of natural gas.

Other production losses
In its ongoing survey of the status of producing wells in 38 parishes in the southern portion of the state, the Louisiana Office of Conservation said 535.7 MMcfd of gas production from onshore or in state waters has been restored, while 42.9% of the wells in that area were still shut in as of Oct. 7. However, the state agency has not yet received information on 38.5% of the oil and gas wells in that region. Daily gas production capacity of the 38 parishes is estimated at 2.2 bcfd, based on average production for January-May.

The US Department of Energy said Oct. 7 that 20 gas processing plants with capacities equal to or greater than 100 MMcfd are still inactive. A number of plants with a combined capacity of 4.76 bcfd "are operational but are not active, owing to upstream or downstream infrastructure [problems] or supplies being unavailable," DOE officials said. "These plants had flowed 2.29 bcfd before the hurricanes." A number of inactive plants are expected to be operating within 4 weeks, the officials said.

Because of higher-than-expected production volumes shut in by Hurricanes Rita and Katrina, Banc of America Securities LLC, New York, said Oct. 10 it raised its fourth quarter forecast for composite spot natural as prices to $12/MMbtu from $10/MMbtu.

DOE said eight Gulf Coast refineries were still shut down Oct. 7, including five idled by Rita and three knocked out by Katrina: a total of 2.1 million b/d of refining capacity offline. That amounts to 900,000 b/d of gasoline, 500,000 b/d of distillate fuel, and 200,000 b/d of jet fuel not being produced, said DOE officials.

Full commercial power has been restored at the Trunkline LNG facility at Lake Charles, La., and the terminal is now operating at normal levels with full regasification and send-out. The Henry Hub pipeline center in Louisiana resumed limited operation without compressors.

Energy prices
The November contract for benchmark US light, sweet crudes gained 48¢ to $61.84/bbl Oct. 7 on the New York Mercantile Exchange, while the December contract increased by 56¢ to $61.62/bbl. Heating oil for November delivery was up by 0.94¢ to $1.96/gal on NYMEX. However, gasoline for the same month fell by 1.13¢ to $1.83/gal. The November natural gas contract continued to fall, down by 14.9¢ to $13.23/MMbtu "on a weaker cash [spot gas] market, milder weather, and follow-through technical selling after Thursday's steep slide," said analysts at Enerfax Daily. "Technical traders say the lower price action that started Wednesday [Oct. 5] may have signaled a downside reversal," they said, after the November gas futures contract earlier hit a record high.

In London, the November contract for North Sea Brent crude jumped by 84¢ to $59.21/bbl on the International Petroleum Exchange. October gas oil rose by $2.25 to $595/tonne.

The average price for the Organization of Petroleum Exporting Countries' basket of 11 benchmark crudes lost 55¢ to $53.72/bbl Oct. 7. The OPEC basket price has averaged $50.10/bbl so far this year.

Contact Sam Fletcher at samf@ogjonline.com.

Related Articles

Mangalore refinery reports steady operations following expansion

02/13/2015 Operations are proceeding smoothly at Mangalore Refinery & Petrochemicals Ltd.’s (MRPL) refinery in Mangalore, India, following the recent comp...

Omsk refinery hits target for Euro 5 diesel output

02/12/2015 JSC Gazprom Neft has switched to the exclusive production of Euro 5-standard diesel fuels at its 21.4 million-tonne/year Omsk refinery in Western S...

Bakken formation pressure standards to take effect Apr. 1

02/10/2015 North Dakota oil and gas regulators ordered operators to condition crude oil from the Bakken, Three Forks, and Sanish formations, effective Apr. 1,...

USW union workers add two BP refineries to strike list

02/09/2015 Union workers at two BP PLC-owned refineries in Indiana and Ohio have joined the United Steelworkers union’s (USW) unfair labor practice (ULP) stri...

Chevron details scheduled maintenance for Cape Town refinery

02/09/2015 Chevron South Africa (Pty.) Ltd., a subsidiary of Chevron Corp., has reported it will begin one of the biggest routine maintenance and safety inspe...

Union strike under way at US refineries, petchem plants

02/09/2015 The United Steelworkers Union (USW) has instituted a strike at nine US refining and petrochemical production plants following a breakdown in negoti...

Chinese regulators approve Sinopec’s plan for grassroots refinery

02/06/2015 China’s National Development and Reform Commission (NDRC) has approved Sinopec Beijing Yanshan Petrochemical Co. Ltd., a subsidiary of China Nation...

Union strike ongoing at US refineries as negotiations continue

02/06/2015 A strike by union workers at nine US refining and petrochemical production plants remains under way as the United Steelworkers Union (USW) continue...

Goodlatte reintroduces bills to repeal, reform RFS

02/05/2015 Calling it “a true ‘kitchen table’ issue,” US Rep. Bob Goodlatte (R-Va.) reintroduced a pair of bills to address problems in the federal Renewable ...
White Papers

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by
Available Webcasts


Prevention, Detection and Mitigation of pipeline leaks in the modern world

When Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST



On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected