RP Weekly Recap | October 12 – 16

Summary

A wild week in oil news saw some of the world’s top analytics firms’ predictions on the future of the oil and gas industry in the United States be overshadowed by the possibility of a massive merger between two shale powerhouses and approval of an expansion for the Dakota Access Pipeline. As temperatures begin to cool off into the winter season, election season is causing the oil industry to heat up.

COVID-19 Updates

COVID-19 Statistics

• Number of Cases (Worldwide): 39,068,667 (up from 36,593,213 last week)
• Number of Cases (USA): 7,997,969 (up from 7,611,772 last week)
• Statistics courtesy of Johns Hopkins

Financial & Economic Updates

US Oil Market News

• ConocoPhillips in Talks to Buy Concho Resources in Big Shale Bet (Link)
• Dakota Access Pipeline Expansion Approved by Illinois Commerce Commission (Link)
• Goldman Says A Biden Win Could Be A “Positive Catalyst” For Oil Prices While Others Believe It Could End The U.S. Oil Boom (Link, Link)  
• Washington State “Does Not Support Further Wind Power Development In The Northwest” (Link)
• EIA Reports Crude Oil Inventory Draw For Ninth Time In Eleven Weeks (Link) 
• Net Zero Goals Impossible Without Costly Carbon Capture (Link)    

Global Market News

• Saudis Considers Canceling OPEC Plans to Boost Output While Russia Pushes Forward (Link, Link) 
• OPEC Chief Assures Markets That Oil Prices Won’t Crash Again (Link, Link)
• Indian Fuel Demand Bounces Back Ahead Of Festive Season (Link)
• Libya’s Oil Production Jumps To 500,000 Bpd After Biggest Field Restarts (Link) 
• Norway Oil Strike Ends After Wage Agreement (Link)
• Oil Price Swings Suggest Mexico’s 2021 Oil Hedge Is Underway (Link)
• Alberta To Restart Oil Lease Sales Despite Crisis (Link)
• Keyera Announces Start Up of Canadian Pipestone Gas Plant (Link)
• Russian Oil Companies Plan Significant Drilling Cuts For 2021 (Link) 
• OPEC+ Discusses Stalled Demand Recovery, Return Of Libyan Oil (Link)
• 5 Major Takeaways From The IEA’s World Energy Outlook 2020 (Link) **MUST READ**
• Why Saudi Arabia May Be Forced To Start Another Oil Price War (Link) **INTERESTING READ**

Employment Updates

• Unemployment Claims Tick Up in Grim Sign for Labor Market Recovery – Initial jobless claims have stagnated between 800,000-900,000 for the last seven weeks, though the number of people continually receiving unemployment benefits continues to drop (Link) 

US Rig Count

• UP 13 from last week for a total of 282
• Down 67% from one year ago
• Statistics courtesy of Baker Hughes

RARE PETRO Updates

Content Updates – News Pulse – Podcast

• Our sixth installment of The Industry Leader Spotlight Podcast is available now! Be sure to check out our interview with multi-disciplinary industry leader, executive, and world traveler; Neel Duncan! (Link) 
• A NEW Basin Breakdown for the Month of September is available now! Be sure to check out the articles HERE and stay tuned for the podcast next week! 
• We are reaching deep into the content vault to bring out some interviews that occurred a couple of years ago. Welcome to the Industry Leader Legacy Series where we will kick off with Dr. Charles Kohlhaas. Dr. Kohlhaas has over 60+ of oilfield experience and skills ranging from technical to teaching. Nowadays he spends his time putting his expertise towards consulting. Even though lots has changed in the years since this was recorded, his knowledge and expertise stands. Part 1 lays the story of the Arabic Oil Embargo out on the table to be further dissected in later parts. (Link)
• Episode 2 (Enterprise Resource Planning) from our newest segment, 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 HERE! 
• A new episode of the Periodical Podcast is available now! Be sure to check out our discussion on the history and future of the price spread between Brent and West Texas Intermediate crude oil blends and what that means for future prices. (Link) 
• This week’s periodical investigates how the price spread between the world’s most traded crude oil blends and the most actively traded commodities in the world generally track one another, but divergences often reflect technical, supply/demand, or geopolitical issues. Over the course of history, the spread between Brent crude and WTI blends has grown, shrunk, crossed paths, and reversed again countless times. As a result of reduced U.S. pipeline constraints, ongoing OPEC+ production cuts, and China purchasing record amounts of WTI crude oil, the spread between Brent and WTI crude oil prices has begun to shrink close to zero. The future may hold a reversal giving WTI prices the upper hand. Be sure to check out Brent-WTI Crude Price Spread: An Ever-Changing Dynamic In Commodity Futures! (Link) 
• As Always, A New Monday Madness Podcast! (Link)  

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