Alaska’s largest oil producer, ConocoPhillips, revealed this week it discovered up to 750 million barrels of oil equivalent in the greater Willow area. That discovery came during its latest exploration and appraisal campaign. But, the company estimates it will cost between $2 billion and $3 billion over four to five years following a final investment decision to develop the resources. The company said first oil is possible as early as 2024.
The outlook for U.S. shale and tight oil has improved notably. That’s what the International Energy Agency (IEA) said in its World Energy Invest 2018 report. But at $715 billion, upstream oil and gas investment has fallen behind electricity for the second consecutive year. Global energy investment totaled $1.8 trillion last year with more than $750 billion going to the electricity sector. That’s all according to the report. Michael Waldron, an energy investment analyst for the IEA, pointed out during a webinar that the close relationship between the numbers could easily cause the two sectors to switch positions depending on upcoming trends.
Plains All American’s Cactus II pipeline became the first major energy project to be denied an exclusion to the tariff on imported steel. The commerce department said it denied the exclusion because a suitable product was available from domestic producers. Plains called the ruling unjust because it had ordered steel from Greece last year prior to the tariff decision. The company did not say how much the tariffs would increase the project's costs. Several major energy companies are awaiting rulings.
U.S. oil production from seven major shale formations is expected to rise about 22,000 barrels per day next month, which would be the smallest monthly increase since shale output declined in February 2019.
BP signed an agreement with Angola aimed at acquiring oil further exploration rights, the latest in a flurry of agreements between oil majors and Africa's second-biggest exporter.
The Senegal government recently gave the greenlight for the project, which is expected to produce 231 million barrels (MMbbl) of oil resources in its initial phase of development and strike first oil in the next three years.