In this week's news, the US Energy Secretary believes the oil market will come into balance within the next year; an Ohio man pleads guilty for his roll in illegal dumping of fracking waste; and the rig count increased by 10 last week to 431
Ernest Moniz, the U.S. energy secretary, says he sees the global oil market coming into balance over the next year as rising demand catches up with a 2-year-old supply glut that lowered prices.
Moniz said, on July 1, that supplies should be adequate after the market comes into balance. He says Saudi Arabia has made it clear that it will maintain spare production capacity if it is needed by the market.
Saudi minister Khalid al-Falih told the Houston Chronicle on June 22 that the oversupply of oil was ending and he expected markets to come into balance this year.
Ohio Man Pleads Guilty For Role in Illegal Dumping of Fracking Waste
A Warren, Ohio, man pleaded guilty July 1 to violating the Clean Water Act by directing an employee at his former job to dump fracking waste into a stormwater system with a link to the Mahoning River.
David Jenkins, a former employee at Hardrock Excavating in Youngstown, is the fifth defendant to be charged as part of a case over the illegal dumping of tens of thousands of gallons of fracking waste in December 2012 and January 2013.
Jenkins says he was aware of a plan by the company’s owner to dump waste housed in tanks without a permit, according to Cleveland.com. Prosecutors say the owner ordered another employee, Michael Guesman, to dump the waste at night, though Guesman consulted with Jenkins on occasions when the owner was not available.
Jenkins faces up to three years in prison and at least a $5,000 fine.
Rig Count Increases by 10
The number of rigs seeking oil and natural gas in the U.S. increased by 10 last week to 431, according to data released by oilfield services company Baker Hughes on July 1.
The number of rigs searching for oil increased by 11 to 341, while natural gas rigs decreased by one to 89. One rig was listed as miscellaneous. Last year 862 rigs were active.
Texas and Oklahoma each added four rigs, while Colorado went up by two and Louisiana by one. Alaska and New Mexico declined by one rig each.