For the 2021 calendar year, there will be 5.8 million barrels per day crude production cuts. These cuts are an effort to balance the current oversupply due to COVID-19 with an estimated demand forecast for the year.
Oil & Gas News
Plans to build charging stations across the country are being crushed by groups backed by industry giants like Exxon Mobil and Koch Empire. According to utility commission filings, these groups have challenged electric companies’ across the United States. Electric utilities are seeking approval on building charging networks in locations such as shopping centers and rest stops across the nation. Whereas the petroleum sector, represented by multiple trade associations and industry-funded political groups, and consumer advocates say they should not have to pay for these services. Stating, their customers will have to pay for the investments helping utilities “pad” their balance sheets. Fossil fuel interests control about 90 percent of the transportation fuel market in the U.S. but are feeling more and more pressure from the electric wave.
British Petroleum (BP) announced this week that they are selling their Alaska operations to Hilcorp Energy Co. for $5.6 billion dollars, ending their six-decade existence in “The Land of the Midnight Sun.” The sale to Hilcorp Energy Co includes BP’s stake in the Prudhoe Bay oil field, the Point Thomson gas field and the Trans-Alaska Pipeline. The deal makes Hilcorp Energy Co. the second largest Alaska producer, between leader ConocoPhillips and ExxonMobil. The proposed deal is subject to state and federal regulatory approval but the deal is expected to be finalized in 2020, according to BP.
In 2018, the United States petroleum production increased 16% while simultaneously increasing natural gas production by 12%. According to the Energy Information Administration (EIA), “these totals combined established a new production record.” The United States has been the largest producer of natural gas since it passed Russia in 2011, and last year the U.S. surpassed Saudi Arabia to become the largest producer of petroleum. All signs indicate that the U.S. will continue to expand their production prominence, and over the next decade, the U.S. is set to account for 61% of all new global oil and gas production, nearly nine times the amount of Canada who projects to be second on the production increase list.