By Kelly Gilblom and Nejra Cehic (Bloomberg) -- Big Oil’s slump is over and industry domination beckons, according to Goldman Sachs Group Inc. In 2018, companies from Royal Dutch Shell Plc to Exxon Mobil Corp. will find themselves with a surplus of cash to fund dividends, ruling the world of deep water mega-projects and even coming out ahead in tax negotiations with … [Read more...]
Trouble Brews for OPEC as Expensive Deepwater Oil Turns Cheap
By Serene Cheong, Sharon Cho and Dan Murtaugh (Bloomberg) -- Reports of deep-sea drilling’s demise in a world of sub-$100 oil may have been greatly exaggerated, much to OPEC’s dismay. Pumping crude from seabeds thousands of feet below water is turning cheaper as producers streamline operations and prioritize drilling in core wells, according to Wood Mackenzie Ltd. … [Read more...]
Deepwater Driller Ocean Rig Files for U.S. Bankruptcy Protection
March 28 (Reuters) - Ocean RIG UDW Inc, a Cyprus-based rig contractor, filed for Chapter 15 bankruptcy protection in a U.S. court amid a deep and prolonged downturn in the industry. Shares of Ocean Rig plunged 61 percent to 27 cents in morning trading on Tuesday. The company had $3.25 billion in debt as of Dec. 31, according to its latest annual filing. Ocean Rig said … [Read more...]
Deepwater Mexico: Exxon, Chevron & Hess Bid To Drill Oil
by Adam Williams (Bloomberg) Exxon Mobil Corp., Chevron Corp. and Hess Corp. have agreed to bid together for rights to drill for crude in Mexico’s deepwater oil areas, according to a person with direct knowledge of the plans. The three U.S.-based producers have reached a Joint Operating Agreement, which allows the consortium to bid to produce oil in the 10 … [Read more...]
Pemex Halts Deepwater Projects With Budget Cuts to Stem Losses
By Adam Williams (Bloomberg) -- Mexico’s state-owned oil company is taking deepwater development off its plate for now. Driven to rip $5.5 billion out of its budget this year to cope with a lengthening market downturn, it makes sense that Petroleos Mexicanos would look first to its riskiest and most expensive operations. The company reported its 13th quarterly loss on … [Read more...]