Who’s moving up in the oil and gas world this month, and who’s falling away?
A Wood Mackenzie study reported that maturing wells in parts of the Permian’s Wolfcamp shale were losing approximately 15% of output per year, five years after production started, compared to the initial loss projection of 5% to 10%. Production in the Permian Basian has hit a few other snags, with worker shortages and pipeline bottlenecks stifling production in the oil field, which is a significant contributor to US oil production. Oil sands extraction innovator Acceleware raised $10mn in funding from Sustainable Development Technology Canada for a pilot test of its RF XL technology, which uses radio frequencies to heat water molecules in the ground, creating steam to extract oil from oilsands without the need for fresh water. The company says its technique reduces greenhous emissions compared to steam assisted gravity drainage. Saudi Arabian Crown Prince Mohammed bin Salman said the longawaited IPO of a 5% stake in Saudi Aramco for a record $100bn would be on hold until it finishes its planned acquisition of local chemicals giant SABIC. He told Bloomberg reporters that making such an acquisition so shortly after an IPO would be unfair to investors. He values Saudi Aramco at $2trn, and says the IPO will go through by 2021. Iraqi Oil Minister Jabar al-luiabi announced that all new upstream and downstream contracts in the country with foreign oil and gas companies must have 85% local workforce. This follows months of protests in Basra, the country’s southern province which provides 95% of the country’s oil revenues, but lacks infrastructure, access to clean water and suffers from high unemployment.