Over 142bn Will Be Spent On 97 Upcoming Oil & Gas Fields in North America To 2025

Published in Oil Industry News on Wed. April 25th 2018

Over $142bn will be spent on 97 upcoming oil and gas fields between 2018 and 2025. Capital expenditure (capex) into North America’s conventional oil and gas projects will add up to $91bn and $2.9bn, respectively over the eight-year period, with $82.6bn of capex contributing from the offshore fields, according to GlobalData, a leading data and analytics company.

Oil sands projects will require $43bn, while the investments into heavy oil assets will require almost $4bn in upstream capex by 2025.

The US accounts for $76bn or over 76 percent of $142bn of capex for the period of 2018 to 2025. The country has 39 announced and planned fields, 9 are onshore fields in Alaska and the remaining 29 are in offshore United States. Among these, top fields in terms of capex for the period are Mad Dog Phase 2 with $13.4bn, Smith Bay with $11.1bn and Horseshoe with $6.5bn.

Canada follows with $46bn or approximately 32 percent share in North America’s planned and announced capex over 2018 and 2025. Canada has 19 planned and announced fields. Three Onshore fields Telephone Lake (Cenovus Energy Inc.), Kearl Oil Sands Project Phase 3 (Imperial Oil Limited) and Kearl Oil Sands Project Phase 4 Debottleneck (Imperial Oil Limited) are the top three fields with capex for the eight-year period of $6.3bn, $5.9bn and $3.3bn, respectively. All three are oil sands developments.

Mexico is expected to contribute $20.9bn or approximately 15 percent to the total capex spending between 2018 and 2025 and has 40 planned and announced fields. The top three fields are Exploratus, Nobilis-Maximino ultra-deepwater conventional oil fields and Trion conventional oil deepwater field with capex of $1.3bn, $3.2bn and $5.3bn, respectively.

GlobalData expects that over their lifetime, the 97 upcoming oil and gas projects will require $234bn in capex to produce over 19,636 million barrels of crude and 9,530 billion cubic feet of gas. Upcoming onshore projects in North America will have the highest total capex at $97.1bn. Ultra-deepwater projects will require $61.7bn over the lifetime, while deepwater and shallow water projects carry a total capex of $38.3bn and $36.4bn, respectively.

Source: oilvoice.com

Trump’s Revenge: U.S. Oil Floods Europe, Hurting OPEC and Russia

By Olga Yagova and Libby George

MOSCOW/LONDON (Reuters) – As OPEC’s efforts to balance the oil market bear fruit, U.S. producers are reaping the benefits – and flooding Europe with a record amount of crude.

Russia paired with the Organization of the Petroleum Exporting Countries last year in cutting oil output jointly by 1.8 million barrels per day (bpd), a deal they say has largely rebalanced the market and one that has helped elevate benchmark Brent prices close to four-year highs.

Now, the relatively high prices brought about by that pact, coupled with surging U.S. output, are making it harder to sell Russian, Nigerian and other oil grades in Europe, traders said.

“U.S. oil is on offer everywhere,” said a trader with a Mediterranean refiner, who regularly buys Russian and Caspian Sea crude and has recently started purchasing U.S. oil. “It puts local grades under a lot of pressure.”

U.S. oil output is expected to hit 10.7 million bpd this year, rivaling that of top producers Russia and Saudi Arabia.

In April, U.S. supplies to Europe are set to reach an all-time high of roughly 550,000 bpd (around 2.2 million tonnes), according to the Thomson Reuters Eikon trade flows monitor.

In January-April, U.S. supplies jumped four-fold year-on-year to 6.8 million tonnes, or 68 large Aframax tankers, according to the same data.

Trade sources said U.S. flows to Europe would keep rising, with U.S. barrels increasingly finding homes in foreign refineries, often at the expense of oil from OPEC or Russia.

In 2017, Europe took roughly 7 percent of U.S. crude exports, Reuters data showed, but the proportion has already risen to roughly 12 percent this year.

Top destinations include Britain, Italy and the Netherlands, with traders pointing to large imports by BP, Exxon Mobil and Valero.

Polish refiners PKN Orlen and Grupa Lotos and Norway’s Statoil are sampling U.S. grades, while other new buyers are likely, David Wech of Vienna-based JBC Energy consultancy said.

“There are a number of customers who still may test U.S. crude oil,” Wech said.

The gains for U.S. suppliers could come as a welcome development for U.S. President Donald Trump, who accused OPEC on Friday of “artificially” boosting oil prices.

“Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea. Oil prices are artificially Very High! No good and will not be accepted!” Trump wrote on Twitter.

‘KEY SUPPLY SOURCE’

While the United States lifted its oil export ban in late 2015, the move took time to gain traction among Europe’s traditional refineries, which were slow to diversify away from crude from the North Sea, West Africa and the Caspian.

“European refiners started experimenting with U.S. crude last year,” said Ehsan Ul-Haq, director of London-based consultancy Resource Economics. “Now, they know more than enough to process this crude.”

U.S. oil gained in popularity, sources said, in part because of the wide gap between West Texas Intermediate, the U.S. benchmark, and dated Brent, which is more expensive and sets the price for most of the world’s crude grades.

This gap, known as the Brent/WTI spread, has averaged $4.46 per barrel this year, nearly twice as high as the year-earlier figure, Reuters data showed.

Wech of JBC Energy said the spread would likely persist in the near future.

The most popular U.S. grades in Europe are WTI, Light Louisiana Sweet, Eagle Ford, Bakken and Mars.

Prices for alternative local grades have been slashed as a result.

CPC Blend differentials recently hit a six-year low versus dated Brent at minus $2 a barrel. Russia’s Urals also came under pressure despite the end of seasonal refinery maintenance.

WTI was available at 80-90 cent premiums delivered to Italy’s Augusta, well below offers of Azeri BTC at a premium of $1.60 a barrel, according to trading sources.

U.S. oil is even edging out North Sea Forties, which is produced in the backyard of the continent’s refineries.

Cargoes of WTI were offered in Rotterdam at premiums of around 50-60 cents a barrel above dated Brent, cheaper than Forties’ premium of 75 cents to dated.

(Additional reporting by Julia Payne and Devika Krishna Kumar; Editing by Dale Hudson)

Walker Lane Explorations Provides Company Update

Lakewood, CO, April 17, 2018 (GLOBE NEWSWIRE) – Phillip Allen, CEO of Walker Lane Exploration, Inc., (WKLN) is pleased to announce the Company has retained BF Borgers CPA PC, an audit firm in Lakewood, Colorado. BF Borgers will assist the Company in filing the Q’s and K’s to bring the Company current. Allen indicates that by having the audit process well under way, bringing the Company current will facilitate management’s efforts to raise working capital to move forward on the New Corporate Direction as reported in a 19th February 8-K filing and a 23rd March news release.

About BF Borgers CPA, PC (www.BFBCPA.us) BF Borgers CPA PC is a PCAOB and CPAB registered Independent Public Accounting firm and auditor that currently audits over 80 SEC registrants ranging in size from startups to Companies with over 500 million in annual revenues.

About Walker Lane Exploration, Inc.
Walker Lane (WKLN) March 16th, 2018 Walker Lane acquired 100% of XON Energy Resources Inc. which a multitude of Oil & Gas Lease with over 50 Wells in Texas. This company also plans on use Wind & Solar to supply power to its production fields, we have a Reserve Audit Report 51-101 prepared by an Third Party Geologist.

If you have further questions, please contact Phil Allen at 1.303.875.1044.

Investor Relations Contact:
Phillip Allen, CEO
Tel: 1.303.875.1044
Email: info@walkerlaneexploration.com

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