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Energy report

May 11th, 2017 under Top Stories

By NICK WINCHESTER

nick@bigbendnow.com

TEXAS —Despite the price of oil dropping to its lowest since November, the number of rigs exploring for oil and natural gas in the U.S. is now 877, up seven on last week’s count, according to Houston-based oilfield services company Baker Hughes. Six of these came from the Lone Star State, which now has a rig count of 443.

An application for the fifth wildcat well in Jeff Davis County was filed to The Texas Railroad Commission yesterday, May 10. Cody Energy LLC, whose third well in the county, 22.2 miles northeast of Fort Davis, was given the green light by the Railroad Commission May 2, filed the latest application.

Oklahoma City-based energy company Devon Energy Corporation filed the first wildcat well application in Jeff Davis County, which was approved in February.

Average retail gasoline prices in Texas have fallen 3.6 cents per gallon in the past week, averaging $2.18/g yesterday, according to GasBuddy’s daily survey of 13,114 gas outlets in Texas. This compares with the national average that has fallen 3.7 cents per gallon in the last week to $2.34/g, according to gasoline price website GasBuddy.com.

Including the change in gas prices in Texas during the past week, prices yesterday were 18.8 cents per gallon higher than the same day one year ago and are 2.6 cents per gallon lower than a month ago. The national average has decreased 5.6 cents per gallon during the last month and stands 12.5 cents per gallon higher than this day one year ago.

“Gasoline prices in much of the country are eroding at a time of year when such a downward fall is anything but par for the course,” said Patrick DeHaan, senior petroleum analyst for GasBuddy.com. “Prices now lay on the fringe of falling under the same point as last year as this year’s usual spring rally has been the weakest in recent memory. Factors playing a role: weak demand and strong production, which continue to weigh on OPEC’s output cut last November designed to cause prices to rise.

“The recent drop in crude oil is posing a much more serious threat and OPEC must soon decide how much market share it will sacrifice to keep oil prices higher- clearly the last cut just isn’t enough. But while oil remains in focus, U.S. refiners have concluded maintenance season and may soon sputter due to inventories that are bulging with weak gasoline demand the story thus far in 2017, leaving gasoline prices in a weak state- perfect for motorists planning summer road trips.”

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