On June 26, S&P Global Platts and Argus Media introduced American GulfCoast Select (AGS), a new benchmark for U.S. crude oil which shale pioneer Harold Hamm was a driving force behind.
“It takes the entire industry community to get this done,” Hamm told Oil & Gas Investor Executive Editor-at-Large Leslie Haines and Hart Energy’s Jessica Morales. “It was a first step, but it’s a great first step.”
A catalyst for the new benchmark was April 20 when the price of WTI plunged below zero, Hamm said noting that it “seems like we have to come up to a crisis moment before you can get anything done.”
“From that point, we started looking for alternatives. Certainly, this is a great alternative to that,” he said of AGS.
“It’s needed to happen for a very long time and finally, it’s taken place,“ he continued. “This is a very huge step in a process that could bring about the market for a waterborne barrel for our type of oil, from American. We are the ones who started all of this. We started it with horizontal drilling and created a tremendous renaissance in America for new crude and natural gas to the market.”
Jump to a topic:
- What is American GulfCoast Select? (0:35)
- Importance of transparency in the market (3:53)
- Where will the price of AGS fall? (5:58)
- The group behind AGS (7:29)
- Will AGS be traded in the futures market? (9:21)
- How will this help Continental? (10:10)
- The industry’s path forward (11:50)
Energy firms reopened more offshore crude oil production by Sept. 18 in the U.S.-regulated northern Gulf of Mexico as shut output fell to 21%, or 396,554 barrels per day (bbl/d), the U.S. Bureau of Safety and Environmental Enforcement (BSEE) said.
The oil and gas rig count rose by one to 255 in the week to Sep. 18, energy services firm Baker Hughes Co said in its weekly report.
XTO Energy’s results from a Wolfcamp Shale completion in Loving, Texas, plus an oil and gas discovery announced by BP in the Gulf of Mexico top this week’s drilling activity highlights from around the world.