RP Weekly Recap | July 5 – 9
In 2020, total consumption of fossil fuels in the United States including petroleum, natural gas, and coal, fell to 72.9 quadrillion British thermal units, down 9% from 2019 and the lowest level since 1991. Last year marked the largest annual decrease in U.S. fossil fuel consumption in both absolute and percentage terms since at least 1949, the earliest year records have been kept. Economic responses to the COVID-19 pandemic in 2020, including a 15% decrease in energy consumption in the U.S. transportation sector, drove much of the decline. But with record declines in U.S. crude oil inventories falling by 6.9 million barrels and total motor gasoline inventories decreasing by 6.1 million barrels from the previous week, it appears this trend may be reversing. Check out these stories and more in this week’s recap of all things happening in oil and gas!
- Number of Cases (Worldwide): 185,787,398 (up from 182,761,673 last week)
- Number of Cases (USA): 33,799,329 (up from 33,679,990 last week)
- Statistics courtesy of Johns Hopkins
Financial & Economic Updates
U.S. Oil Market News
- U.S. Fossil Fuel Consumption Fell by 9% in 2020, The Lowest Level in Nearly 30 Years
- Nonfossil Fuel Sources Accounted For 21% of U.S. Energy Consumption in 2020
- Contango Oil & Gas to Acquire ConocoPhillips Wyoming Assets
- North Dakota Sues Federal Government over Canceled Oil and Gas Leasing
- California Scrambles to Find Electricity This Summer as Blackout Risks Grow
- Record Decline In U.S. Crude Stockpiles Fuels Oil Rally
- Biden Administration Pushes for ‘Compromise Solution’ in OPEC+ Talks
- Despite Oil High Price, US Shale Firms Hesitate to Pump, Hedge More
- Colorado Regulators Vote to Ban Huston Oil Company, Executives From Doing Business in State
- Mesa II Makes First Acquisition of Haynesville Shale Portfolio
- Patterson-UTI to Buy Pioneer Energy Services for $295 Million
Global Market News
- Oil Companies Are Ordered to Help Cover $7.2 Billion Cleanup Bill in the Gulf of Mexico
- In OPEC Deadlock, U.A.E. Steps Out of Saudi Shadow
- OPEC+ Abandons Oil Output Meeting after Saudi-UAE Clash
- Shell to Boost Shareholder Returns Via Share Buybacks, Dividends
- The EU Proposes To Exempt Private Jets From Fuel Tax
- China’s Crude Imports Jumped Nearly 9% In June
- The number of workers unemployed for more than a year jumps by 248,000
- Jobless Claims Hold Steady Below 400,000 – despite the slight uptick last week, the longer-term trend is downward
United States Rig Count
- Up 4 from last week for a total of 479
- Up 117% from one year ago
- Statistics courtesy of Baker Hughes
RARE PETRO Updates
Content Updates – News Pulse – Podcast
- Tune in for the first episode in our educational series where we consult experts in the field on many different technical disciplines. In our first episode, your host Tavis uncovers the fact that scientists, philosophers, and engineers have been predicting the eventual peak of oil production for decades, but each estimate has been incorrect. Was 2019 the year of peak oil? What are factors contributing to a decline in production? What are the newest estimates for peak oil? Tune in to Peak Oil: The Continuous Climb to find out!
- Founded in 2007, Oasis Petroleum has done a stellar job of making a name for itself in the Williston Basin. How do they financially stack up to a past version of themselves and other peers in the area? Find out with RARE PETRO’s Energy Market Report Card! Or check it out in Video format HERE!
- Grab a drink and join us for our newest segment, Thirsty Thursday: An Inventory Report to see if we’ve been poured another tall glass of crude and whether or not the U.S. was thirsty enough to suck down another round.
- Our latest episode of the Periodical Podcast is available now! Be sure to check out our discussion highlighting the record-toppling, early-season heat waves well into the triple digits that have spread across the western portion of the United States straining electricity grids as severe drought constricts hydroelectric power generation. As the summer months continue, electricity security is beginning to bear its ugly face yet again as states like California and Texas brace for a difficult season.
- Our latest Periodical highlights last Friday’s OPEC meeting to discuss production cuts that ended as quickly as they began. Russia and Saudi Arabia want to see sustained production cuts to show the world that they’re committed to their pledges, but the UAE wants to produce more oil as soon as possible. The group needs unanimous approval, so the UAE’s decision could be a major roadblock.
- As Always, A New Monday Madness Podcast!
- Is oil valuable? Depends on who you ask! Some argue it only became valuable when we learned how to use it. Join your host Tavis Kilian for episode five of Hydrocarbon History as he explores the birth of the modern oil and gas industry!
- Episode Fifteen of The Industry Leader Spotlight Podcast is available now! Be sure to check out our interview with Debra Hall, President and CEO of Elementale Enterprises!
- Episode 11 (Tackling the Data Monster Pt. 2) of the Modern Mobile Oilfield is available now! This series is a collaborative effort between world-renowned author Geoffrey Cann and RP host Tavis Killian that will expand on topics covered in the book “Bits, Bytes, and Barrels”. This new segment is aimed at energy professionals at any level who are looking to better understand the future of a digital oilfield and potentially implement these technologies into their company’s workflow. Be sure to watch or listen on all available platforms!
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