Crude markets reverse course
Oil markets and outlooks made a sharp turn in 2018, quickly shifting from predictions of global shortages and $100-a-barrel crude to concerns about increasing supplies, weakening demand and another oil glut. Crude prices ended 2018 at just over $45 a barrel, down $15, or 25 percent, from 2018’s opening price of $60.42. It was the commodity’s first annual decline since 2015 — a slide that occurred in the last three months of the year after prices peaked at $76.41 a barrel on October.
Lone Star State’s energy sector throttles back
The slide in oil prices took its toll on the Texas energy industry in the fourth quarter, the Federal Reserve Bank of Dallas reported. The sector continued to expand, but barely, according a survey of energy executives. An index based on the survey to measure business activity plunged to 2.3 from 43.3 in the third quarter, essentially ending 10 quarters of rising activity in the industry. Positive readings indicate expansion; readings below zero indicate contraction.
CEO adds chairman title at Halliburton
Halliburton Chief Executive Jeff Miller added the title of chairman at North America’s top fracking company as the industry heads into an uncertain year with lower oil prices. The Dallas native strengthened his position at the top of the Houston oil field services provider after the executive chairman and former CEO, Dave Lesar, retired at the end of 2018. Halliburton will celebrate its 100th anniversary in 2019, but timing coincides with the company’s stock plunging almost 50 percent in the past year, driven largely by the 40 percent oil prices since October.
Energy patterns mean Texas could quit coal
Texas is one of the only places where the natural patterns of wind and sun could produce power around the clock, according to new research from Rice University. Scientists found that between wind energy from West Texas and the Gulf Coast, and solar energy across the state, Texas could meet a significant portion of its electricity demand from renewable power without extensive battery storage. The reason: These sources generate power at different times of day, meaning that coordinating them could replace production from coal-fired plants.
2019 promises to be busy year for LNG sector
The growth of the Gulf Coast’s liquefied natural gas industry is set to accelerate in 2019 as at least three major projects are expected to get the go-ahead from developers. Within the next six months, developers behind each project are expected to make final investment decisions that would inject a combined $20 billion into the region over the next four years, according to the energy research firm Wood Mackenzie.
Be sure to enjoy low pump prices while you can
Gasoline prices ended 2018 at their lowest point in two years — an average of $1.90 a gallon in Houston — but the GasBuddy price-tracking website forecasts that motorists could pay at least $1 a gallon more by May, pushing average prices above $3 a gallon in most of the biggest U.S. metropolitan areas. The website expects oil prices to rise as output cuts by OPEC and its allies take effect and refiners switch to higher-cost summer fuel blends in the spring.