RP Weekly Recap | September 28 – October 2

Summary

On Thursday, news headlines read “Oil Prices Slide As OPEC Opens The Valves” which referenced the overall increase in OPEC production for the month of September. Yet only 3 of the past 14 weeks has the EIA reported domestic crude oil inventory builds. In the month of September alone, there was a total of 10.989 million barrels of crude oil drained from domestic inventories and yet when news breaks that OPEC increased production during September, when global inventories fell at historic rates, current prices dropped. Seriously?!? Market participants are reacting to something that happened in the past without paying attention to the actual supply/demand picture.

COVID-19 Updates

COVID-19 Statistics

• Number of Cases (Worldwide): 34,411,708 (up from 32,345,456 last week)
• Number of Cases (USA): 7,292,422 (up from 6,990,568 last week)
• Statistics courtesy of Johns Hopkins

Financial & Economic Updates

US Oil Market News

• Devon Energy and WPX Energy to Combine in Merger of Equals, Creating a Leading Energy Company Focused on Generating Free Cash Flow and Return of Capital to Shareholders (Link) 
• U.S. Taxpayers Face $280 Billion Bill For Orphaned Oil Wells (Link) 
• U.S. Onshore Oil Production To Fall Amid Slowdown In Drilling (Link) 
• U.K. Based Octopus Energy Has Bought The American Supplier Evolve Energy (Link) 
• Colorado Adopts Pre-Production Emissions Standards for Oil, Natural Gas Wells (Link)  
• U.S. Shale Producer Lonestar Resources Files For Chapter 11 Bankruptcy Protection (Link) 
• Colorado oil regulators approve a 2,000-ft setback rule for drilling and fracking operations. A recent analysis concludes that 89%, 73% and 71% of PDC Energy’s, Extraction Oil & Gas’ and Occidental Petroleum’s respective total gross surface acres will be non-viable for placing wellpads under the new rules (Link) **MUST READ**  

Global Market News

• Oil Prices Slide As OPEC Opens The Valves (Link) **INCORRECT INFORMATION!!!!** 
• U.S., UAE And Israel Agree On Joint Energy Strategy (Link) 
• Venezuela Sees Oil Revenue Fall By 99% As U.S. Sanctions Sting (Link, Link)
• Saudi Arabia’s GDP Slumped By 7% Year-Over-Year In Q2 As A Result Of The Oil Price Crash (Link) 
• ConocoPhillips Executives Predict Global Oil Demand Will Return And Grow (Link) 
• ExxonMobil To Proceed With Payara Development Offshore Guyana (Link)  
• China Is Giving Iran’s Oil Industry A Major Boost Becoming A Buyer For All The Crude Oil Iran Can Produce (Link) 

Employment Updates

• Shell To Cut 7,000 – 9,000 Jobs (Link) 
• Marathon Petroleum, Top U.S. Refiner, Begins Widespread Job Cuts (Link)
• The United States Added 661,000 Jobs in September, Pushing Unemployment Rate Down to 7.9% – job gains were lower than expected and less than half those seen in August – a sign that the labor market’s recovery is slowing (Link) 

US Rig Count

• UP 5 from last week for a total of 266
• Down 69% from one year ago
• Statistics courtesy of Baker Hughes

RARE PETRO Updates

Content Updates – News Pulse – Podcast

• Episode 1 of our newest segment, the Modern Mobile Oilfield is available now! This series will be a collaborative effort between world renowned author Geoffrey Cann and 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 how global supply is lower than you think, regardless of what news headlines claim. (Link) 
• This week’s periodical investigates the lag in global crude oil supply behind rapidly increasing global demand. While global forecasting agencies and oil companies alike predict slow demand growth to pre-pandemic levels, due to the geopolitical influence on the world’s most important comedy, supply will be unable to keep up with the growing global demand throughout 2021. Be sure to check out The Slide in Supply: Why Oil Supply is Lower than You Think! (Link) 
• As Always, A New Monday Madness Podcast! (Link) 

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