In May, U.S. crude oil production slips, the U.S. adds more rigs, Russia cuts power exports to Finland, and Energean makes another successful gas discovery. Continue reading our oil and gas news roundup to learn more about what’s happening in the industry this month.
U.S. Oil Output Slips as Higher Costs hit Drillers
Weekly U.S. crude oil production declined for the first time in three months, signaling that soaring costs across the oil fields may be preventing drillers from expanding output. The decline hits as the oil-consuming nations are scrambling for additional supplies to reduce reliance on Russia and bring down the skyrocketing crude prices. Domestic crude output last week fell 100,000 barrels to 11.8 million barrels a day, after holding steady over the previous three weeks.
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U.S. Adds New Rigs
The U.S. added nine rigs in one week, according to Baker Hughes’ latest rotary rig count. These nine added rigs are comprised of seven land rigs, one inland water rig, and one offshore rig. The total U.S. rig count is now said to stand at 714 rigs, comprising 695 land rigs, 18 offshore rigs, and one inland water rig. With 563 of these classified as oil rigs, 149 classified as gas rigs, and two classified as miscellaneous rigs.
For more information on these new additions, check out the full article on rigzone.com
Russia cuts Power exports to Finland over Failed Payments
Russia had cut all its exports of electricity to Finland due to non-payment. Inter RAO said it would stop exporting power to Finland “for the time being” as it had not been paid for power sold via pan-European exchange Nord Pool since May 6th.
Finnish grid operator Fingrid said it could replace Russian supplies with Swedish power by boosting domestic production. Refinitiv analysts said the loss of Russian flows would drive up Finnish wholesale power prices by 8.20 euros to 90.20 euros per megawatt-hour (MWh) for the third quarter.
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Energean Makes Another Successful Gas Discovery Off Israel
Oil and gas company Energean has made another commercial gas discovery via its Athena exploration well offshore Israel. The Athena exploration well was drilled on Block 12, some 15 miles from Karish and 12 miles from Tanin. It was drilled in 51 days and came in below the budget of $35 million. This is the fifth exploration well in a row that has been drilled successfully by Energean in Israel. Preliminary analysis indicates that the Athena discovery contains recoverable gas volumes of 283 bcf on a standalone basis.
For additional analysis information check out the full article on rigzone.com
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