More mergers and acquisitions could be in store for the oil patch in 2018, experts say, boosted by oil prices at levels not seen in 30 months and a flurry of available acreage as companies focus on their very best plays.
(Mon, 22 Jan 2018) EIAâs January 2018 <em>Short-Term Energy Outlook</em> (STEO) forecasts that natural gas will remain the primary source of U.S. electricity generation for at least the next two years. The share of total electricity supplied by natural gas-fired power plants is expected to average 33% in 2018 and 34% in 2019, up from 32% in 2017.
(Fri, 19 Jan 2018) Montana experienced exceptionally hot and dry conditions last summer, which resulted in wildfires and a flash drought—an unpredictable drought that intensified very quickly. As a result, the hydropower share of the stateâs electricity generation dropped below normal levels.
(Thu, 18 Jan 2018) In its January 2018 <em>Short-Term Energy Outlook</em> (STEO), EIA forecasts that total fossil fuels production in the United States will average almost 73 quadrillion British thermal units (Btu) in 2018, the highest level of production on record. EIA expects total fossil fuel production to then set another record in 2019, with production forecast to rise to 75 quadrillion Btu
(Wed, 17 Jan 2018) Wholesale electricity prices at major trading hubs in the eastern United States during 2017 were relatively unchanged from 2016, while average monthly wholesale prices in California and Texas increased by 18% and 27%, respectively, in 2017.
(Tue, 16 Jan 2018) In 2017, natural gas spot prices at the national benchmark Henry Hub in Louisiana averaged $3.01 per million British thermal units (MMBtu), about 50 cents per MMBtu higher than in 2016. The higher prices in 2017 contributed to less natural gas consumption for power generation. Increased domestic production was offset by increased exports of natural gas by pipeline and liquefied natural gas (LNG) cargoes.
Nigeria is bracing itself for another stern test this year as it hopes to restore its oil production fully while at the same time maintaining the fragile peace in the restive Niger Delta.
Blockchain, the distributed ledger technology which was possibly the hottest tech topic in the energy sector in 2017 has still to prove itself as more than hype in the oil sector.
Doubts over the future of the global oil and natural gas industry could be stoked further this year if appetites for lending and investment in the fossil fuel sector continue to wane. Climate change, the rise of renewable energies and the prospect of peak oil demand are already knocking dents into the long-term investment outlook for the oil sector.
The shutdown of nearly half the UK's oil output due to a hairline fracture in the Forties pipeline in December has added to doubts about the long-term future of the North Sea oil industry.
