Devon Energy Corp., Oklahoma City, said production from its Jackfish 1 and 2 thermal projects in the southern Athabasca oil sands region of Alberta reached 51,000 b/d of bitumen in the second quarter, 63% above the year-earlier average (OGJ Online, Dec. 6, 2011).

Horizontal wells in the US Midcontinent Mississippi lime oil play aren’t as productive as those in the Williston basin Bakken, but shallower depths and cheaper drilling costs are driving increased interest in the Mississippi lime, said IHS Inc.

Sumitomo Corp. will invest $1.4 billion in exchange for 30% of Devon Energy Corp.’s interest in 650,000 net acres in the Cline shale and Midland-Wolfcamp shale in the Permian basin.

Kohlberg Kravis Roberts & Co LP will participate with Comstock Resources Inc., Frisco, Tex., in future Eagle Ford shale development in South Texas.

The Eagle Ford shale play in South Texas is a contender for the best tight oil play in the US based upon strong drilling results, large prospective area, and magnitude of resource potential, said a new report from IHS Inc.

China’s ability to process large volumes of heavy crude oil from Canada’s oil sands is limited. Xingyi Wang, vice-president of China National Petroleum Corp. America Ltd., made this remark July 25 while addressing China’s plans regarding heavy oil at the Oil Sands & Heavy Oil Technologies conference in Calgary.

Cenovus Energy Inc., Calgary, has provided updates on its Foster Creek, Christina Lake, Pelican Lake, Telephone Lake, and Narrows Lake oil sands and heavy oil projects in western Canada.

Shell and China National Petroleum Corp. have amended the production sharing contract that covers the 1,693 sq km Changbei tight gas block in China’s Ordos basin to cover an extended development phase.

The amount of sulfur recovered from global oil and gas operations is set to increase by the equivalent of 30% of current production during 2011-16, according to Uday Parekh of DEVCO, Tulsa.

The pace of oil drilling could slow in the Bakken formation in North Dakota and also in the Eagle Ford shale in South Texas if US prices were to drop below $80/bbl for a sustained period, said Baker Hughes Inc.’s president and chief executive officer.

Schlumberger Ltd. reported second-quarter weakness in the hydraulic fracturing market although robust performance in other land businesses and in the US Gulf of Mexico tempered the firm’s declining fracing margins.

CNOOC Ltd. will acquire Nexen Inc., Calgary, for $15.1 billion as China expands its holdings in worldwide exploration and production operations.

Billions of barrels of oil that could increase domestic supply, help reduce imports, and improve US energy security may be potentially recoverable from residual oil zones, according to initial findings from a study supported by the US Department of Energy’s Office of Fossil Energy.