In this week's news update, the rig count drops below 700, and the first cargo shipment of exported crude oil is bound for Europe
The first cargo shipment of U.S. crude oil to be exported to a country other than Mexico or Canada left Corpus Christi, Texas, on Thursday, December 31, bound for Italy. ConocoPhillips and NuStar Energy supplied the light Eagle Ford Shale crude, which will be sold to Swiss trading corporation Vitol.
Vitol is also purchasing a second shipment, expected to ship out of Houston this week.
Rig count drops below 700
For the first time since 1999, the U.S. rig count dipped below 700 the last week of 2015. According to the report released Dec. 31 by Baker Hughes, the oil rig count dropped by two while the number of rigs seeking natural gas remained unchanged, putting the total count at 698.
A year ago, 1,811 rigs were active.
California and North Dakota each declined by two, and Ohio, Oklahoma and West Virginia dropped one rig apiece. Louisiana and Texas gained two rigs. Pennsylvania was up one. Alaska, Arkansas, Colorado, Kansas, New Mexico, Utah and Wyoming were unchanged.
Canadian Oil Sands investors urged to refuse takover
Canadian Oil Sands is again urging stockholders to reject the takeover bid proposed by Suncor Energy. The company sent a letter to its shareholders last week saying it can weather the low crude oil prices.
Suncor took its offer directly the Canadian Oil Sands shareholders on Oct. 5 after attempts at a friendly takeover were rejected by Canadian Oil Sands earlier in the year. The deadline for the investors’ decision on whether to accept a hostile takeover is Jan. 8.
Dakota Access seeking condemnation for pipeline
Dakota Access LLC pipeline has filed condemnation suits against 140 individuals, banks and a coal mine in order to gain easements through North Dakota.
Most of the suits were filed in December against landowners. Landowners are reportedly feeling “pipeline fatigue” from numerous projects in the area and are holding out for better terms before they agree to the easement request. Reclamation is the main issue.
Energy Transfer Partners plans to build the 1,200-mile pipeline starting in Stanley, North Dakota, and ending in Illinois. The company claims the pipeline will accommodate transportation of more than 1.1 million barrels daily.
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