Houston Chronicle

Texas drillers say slowdown worse than global analysts have estimated Seadrill unveils hybrid rig

- Sergio Chapa, James Osborne, L.M. Sixel and Bloomberg News contribute­d.

Slowdown underestim­ated

Texas oil and gas companies, after years of eye-rolling at shale skeptics, now say global analysts are underestim­ating just how severe the industry’s slowdown is. The Internatio­nal Energy Agency in Paris expects U.S. production to increase by 900,000 barrels a day next year, while the U.S. Energy Department forecasts 1 million. But those projection­s don’t jibe with what companies are experienci­ng on the ground in Texas, home to about half of U.S. crude output.

Energy shift too slow

World leaders’ efforts to shift away from fossil fuels and slow climate change are not going quickly enough to avoid environmen­tal catastroph­e, the United Nations said in a report. Considerin­g current emissions and the existing pledges by individual countries, the Earth’s temperatur­e would rise by almost six degrees Fahrenheit, far beyond the goal of 3.6 degrees Fahrenheit set at the Paris meeting on climate change in 2015. To avoid that scenariom nations will need to increase their pledged carbon reductions fivefold between 2020 and 2030, according to the annual Emissions Gap Report.

Icahn escalates Oxy fight

Carl Icahn plans to nominate a slate of 10 directors in an attempt to seize control of the board of U.S. oil and gas producer Occidental Petroleum Corp., Bloomberg reported, citing people familiar with the matter. The billionair­e investor, who owns a stake in the company valued at about $1 billion, plans to make his move before the Nov. 29 deadline for nomination­s, said the people, who asked not to be identified because the matter is private. A representa­tive for Icahn declined to comment, while a representa­tive for Occidental wasn’t immediatel­y available for comment.

Regulators consider transparen­cy

Texas regulators are weighing whether to require electricit­y brokers to disclose their ties to retail electric providers, a move that could shine a brighter light on the brokerage websites millions of Texas consumers use to shop for power. The proposed policy, which the commission will open to public comment, comes as more electricit­y sellers launch their own brokerage operations, creating a potential conflict of interest and concerns that the brokerages would favor their parent company over competitor­s in recommendi­ng plans to consumers.

Chevron sells gas assets

Chevron has entered into a deal to sell its natural gas assets in Colombia. Under the deal, Chevron is selling its 43 percent share in a joint venture with the Colombian national oil company Ecopetrol to an Ecopetrol subsidiary, Hocol. Financial terms of the deal were not disclosed but the deal remains pending approval from federal regulators in Colombia. The joint venture included a stake in offshore natural gas fields in the Caribbean Sea as well as the onshore Ballena natural gas field and a processing plant in the province of La Guajira.

Not only are offshore drilling rigs become smarter and more automated, they are becoming greener and more energy independen­t. Seadrill, an offshore drilling rig operator headquarte­red in Bermuda with its principal offices in London and Houston, has unveiled the company’s first hybrid offshore drilling rig — which draws power from both diesel-fired generators and renewables-friendly battery storage technology. Seadrill announced that the battery system for its West Mira offshore drilling rig was certified by the Norwegian registrati­on and classifica­tion organizati­on DNV GL.

 ?? Courtesy Phtoo / Double Eagle Energy Holdings III ?? Shale drillers say recent forecasts on U.S. production are too optimistic.
Courtesy Phtoo / Double Eagle Energy Holdings III Shale drillers say recent forecasts on U.S. production are too optimistic.

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