Baker Hughes: US Drillers Add Four Rigs This Week With Oil Over $50 Per Barrel

July 24 - October 31, 2013

Reuters (10/14, DiSavino) reported the number of US oil rigs rose again this week, “extending one of its best recoveries with no cuts for 16 straight weeks, with analysts expecting more additions as crude prices hold over $50 a barrel.” Drillers added four oil rigs in the week, bringing the count up to 432, “the most since February, but still below 595 rigs a year ago,” according to Baker Hughes on Friday. Analysts “said prices over $50 were high enough to prompt energy firms to return to the well pad.” The Wall Street Journal (10/14, Stahl, Subscription Publication) reported the US gas rig-count increased 11 to 105 in the past week, while the offshore rig-count held steady at 23, which is down 10 from 2015. Analyst: Permian Basin Could See Increase Of 200 Rigs. KOSA-TV Odessa, TX (10/16, Thatcher) reports oil and gas consultant Morris Burns “said we could be seeing an increase of about 200 rigs right here in the Permian Basin.” Burns explained that many companies will be increasing their drilling budget next year: “We’re not using the oil that we’ve got and that’s why the price went from $100 down to $26 in February and of course its doubled since then.”

GE’s Oil, Gas Business To Merge With Baker Hughes

July 24 - October 31, 2013

The New York Times (10/31, Bray, Subscription Publication) reports General Electric said Monday that it would combine its oil and gas business with Baker Hughes, “looking to increase its scale to battle the effects of a prolonged slump in oil prices that has eaten into results.” GE referred to the new company as the “new” Baker Hughes and it would be “one of the world’s largest providers of equipment, technology and services to the oil and gas industry.” The Wall Street Journal (10/31, Cimilluca, Mattioli, Benoit, Subscription Publication) reports that GE would benefit from such a combination and could benefit from savings and synergies without having to pay for the full acquisition of Baker Hughes. GE estimates the merger will add roughly four cents to its earnings per share in 2018 and eight cents by 2020. After two years of the energy price slump, GE and some competitors are starting to be optimistic. The AP (10/31) reports the new combined company will be “a powerful player in an energy sector buffeted by years of weak prices.” Reuters (10/31, Scheyder, Hirsch) reports says the GE-Baker Hughes deal is “the clearest signal yet that consolidation is picking up in the energy sector as companies face long-term lower oil prices.” GE CEO Jeff Immelt said on a call with investors Monday that “The transaction assumes a slow recovery (in oil prices), really $45 to $60 per barrel through 2019, and this seems reasonable.” The size of the GE-Baker Hughes merger and the timing “amid a recent spate of deals have led advisers and industry analysts to think companies have readjusted to lower oil prices in their strategies and the tide is turning.”

New Manufacturing Company To Make Equipment For Well-Boring At Drilling Sites

July 24 - October 31, 2013

The Houston Chronicle (11/10, Smith) reports two former Halliburton employees have started an energy equipment company called Citadel Casing Solutions that manufactures equipment for well-boring at drilling sites. The company has received millions of dollars to start the manufacturing company, according to a Houston Business Journal report.

Haas Mini Mill-EDU Vertical Milling Machine

July 24 - October 31, 2013

Whether you're starting a new engineering program or upgrading an existing one, the Haas Mini Mill is the ideal learning tool. Now available in a school edition, this machine is bundled with educator and student tools that provide real-world machine shop experience within the classroom. It's the perfect combination of affordability, accessibility, and industry-standard programming. The Haas Mini Mill-EDU comes standard with the same powerful features that manufacturers around the world use every day. Built with the same high-quality components as the standard Mini Mill Available exclusively for schools Featuring the Haas Next Generation Control Made in the USA

U.S. oil drilling rig count recovery extends into 7th month: Baker Hughes

July 24 - October 31, 2013

Reuters (12/2, DiSavino) reported drillers “added three oil rigs in the week to Dec. 2, bringing the total count up to 477, the most since January, but still below the 545 rigs seen a year ago, energy services firm Baker Hughes Inc said on Friday.” Reuters characterized US energy companies as extending their recovery in oil drilling “into a seventh month this week as they follow through on plans to add rigs as crude rose to its highest price in over a year.” The Wall Street Journal (12/2, Steele, Subscription Publication) reported the gas-rig count rose by one to 119 last week while offshore drillers added one to that count, bringing the total to 22.

Brady: House Tax Proposal Establishes America As Magnet For Jobs, Innovation.

July 24 - October 31, 2013

In a guest column, US Rep. Kevin Brady (R-TX) writes for the Houston Chronicle (1/2) that the House GOP tax reform plan will end America’s “outdated tax code” by “border adjusting our taxes like our foreign competitors do.” He says the new plan “helps eliminate all tax incentives for U.S. companies to move their manufacturing, technology and headquarters jobs overseas.” Brady adds, “Coupled with the new lower GOP tax rates on local businesses and ending the double-taxation of U.S. earnings overseas, this establishes America as a 21st Century magnet for new jobs, technology breakthroughs and headquarters.” In a separate article, the Houston Chronicle (1/2, Osborne) reports on Rep. Kevin Brady’s tax overhaul proposal. Intending to grow America’s manufacturing sector, the plan is designed to streamline “an overly complex and burdensome tax system to grow exports and jobs in manufacturing.” According to the article, instead of “taxing the income of companies operating in the United States, as is the case now,” the proposal “would tax only the income that comes from activity within the country’s borders – at a rate of 20 percent, not the current 35 percent.”

Jan 3rd Stock Report

July 24 - October 31, 2013

Stock Prices In Relation To Previous Day’s Adjusted CloseStock Prices In Relation To Previous Day’s Adjusted CloseDJIA 19,762.60 - 0.29%S&P 500 2,238.83 - 0.46%Nasdaq 5,383.12 - 0.90%Gold $1,157.80 + 6.10Silver $16.14 + 0.15COMEX Copper $254.25 + 3.70Platinum Spot $912.21 + 9.11Zinc $2,576.00 + 54.00Tin $21,125.00 + 75.00Natural Gas $3.49 - 0.23Crude Oil $57.15 + 0.33LME 3 Month Aluminum $1,693.00 + 14.00

Houston equity firm’s company makes acquisition

July 24 - October 31, 2013

A global trailer running gear and chassis assembly company that is majority-owned by a Houston private equity firm has acquired two vehicle components manufacturers. Dexter -- part of DexKo Global -- has acquired Ingersoll Axles' assets that build heavy duty axles and suspension systems. The company also has acquired light duty manufacturer Standen. Ingersoll Axles and Standen will be merged into one company and operate as a subsidiary of Dexter. Dexter plans to acquire Ingersoll Axles' manufacturing locations in Ontario, Alberta and Indianapolis. Houston-based The Sterling Group owns a majority of DexKo Global and Dexter.

New Mitsubishi Caterpillar Forklift manufacturing facility to begin construction

July 24 - October 31, 2013

Houston-based Mitsubishi Caterpillar Forklift America Inc. is preparing to build another Houston-area facility. Construction is slated to begin immediately on a 71,000-square-foot manufacturing facility and distribution center on 10 acres in the Conroe Industrial Park, according to a release. The facility is part of a joint venture between MCFA and Hamburg, Germany-based Jungheinrich AG, a material handling equipment company. Financial details were not disclosed, but Ruston, Louisiana-based Origin Bank provided financing for the project. Houston-based Archway Properties is the developer, and St. Louis-based Arco Construction Company Inc. is the builder, per the release. The facility is expected to be complete this year. In recent years, MCFA also moved production of its Cat Lift DP100N - DP160N forklift truck series from Japan to its Houston manufacturing base on West Sam Houston Parkway. Additionally, Houston-based Mitsubishi Heavy Industries America Inc., a wholly owned subsidiary of Tokyo-based Mitsubishi Heavy Industries Ltd., moved its headquarters from New York to Greenway Plaza in 2016. The move added about 40 jobs in Houston and was expected to help the company target industries such as chemical plants. The Houston headquarters oversees MHI operations throughout North America, and MCFA is part of the MHI Group. Mitsubishi Heavy Industries Compressor International Corp., another MHI Group company, opened a 180,000-square-foot manufacturing facility in Pearland about two years ago. MHIA named Kiyoshi Okazoe president in October.

Total Rig Count Increases 12 To 741

July 24 - October 31, 2013

The Wall Street Journal (2/10, Jamerson, Subscription Publication) reports Baker Hughes said that the number of oil rigs drilling in the US increased by 8 last week, bringing the total to 591. The gas rig count increased by 4 to 149, while offshore rigs fell by 1 to 21. Reuters (2/10, DiSavino) reports the data shows the average rate of rig additions over the past four weeks increased to 17, the highest rate since February 2012. Raymond James said in a note that it expects the combined oil and natural gas rig count to be 850 in 2017. Fuel Fix (TX) (2/10) reports the Permian Basin led the increase by adding six more rigs. Texas added a total of seven rigs, while four were added in New Mexico, two in Louisiana, two in West Virginia and one in Pennsylvania. Ohio and Wyoming each lost two rigs.

EIA: US Shale Oil Output To Rise In March By 80,000 BPD

July 24 - October 31, 2013

Reuters (2/13) reports the US Energy Information Administration’s drilling productivity report shows that March oil production “is forecast to rise by 79,000 barrels per day to 4.87 million bpd,” which would be the biggest monthly rise since October. In the Permian shale play of West Texas and New Mexico, output “is forecast to rise by more than 70,000 bpd to 2.25 million bpd, in what would be the biggest monthly rise since January 2016.” Meanwhile, Eagle Ford production in Texas “is expected to rise by 14,000 bpd to 1.08 million bpd, the first monthly increase since December 2015, EIA data showed.”

Shale Drilling Up as OPEC Cuts Keep Oil above $50

July 24 - October 31, 2013

Drillers have added 72 rigs since 2017 began, the best start in five years. The expansion is spreading in Texas and Oklahoma, with the Granite Wash play leading the increase. Shale wildcatters pushed ahead on the biggest surge in U.S. oil drilling since 2012 as the explorers take advantage of prices above $50 for more than two months. Rigs targeting crude in the U.S. rose by 6 to 597 this week, the highest total since October 2015, according to Baker Hughes Inc. data reported Friday. Drillers have added 72 rigs since 2017 began, the best start in five years. The expansion is spreading in Texas and Oklahoma, with the Granite Wash play leading the increase this time around. Producers are cashing in on a more stable oil market, with prices swinging between $50 and $55 a barrel as the Organization of Petroleum Exporting Countries and 11 other nations cut back production to help reduce global supplies. Saudi Arabia told OPEC it reduced its oil output by the most in eight years, according to the group’s monthly report released earlier this week. “We’re seeing the rise that we anticipated to take place given the OPEC cuts,” Bloomberg Intelligence analyst Andrew Cosgrove said. “These gains are spreading to other plays, and this is something we’re expecting will continue through the first half given the stability in the price of oil.” Oil producers have brought 281 rigs back to work since drilling bottomed out in May, the biggest gain since producers added 361 rigs over the nine months through June 2012. U.S. crude inventories rose to 518.1 million barrels last week, the highest in weekly data going back to 1982, according to the Energy Information Administration. Drilling Boom Drilling is booming in a few shale plays -- led by the Permian Basin in West Texas and New Mexico and the Scoop and Stack formations in Oklahoma -- as they offer good returns at a $50 oil price. Producers including Diamondback Energy Inc. and Occidental Petroleum Corp. remain focused on the Permian, while Marathon Oil Corp. intends to double down on its assets in Oklahoma. Diamondback climbed to a record close on February 15 after beating earnings estimates, while Occidental looks to sell assets in South Texas so it can continue to expand in the Permian. Marathon plans to double its number of rigs in the Scoop and Stack to 10 this year. The Permian remains the most attractive play for investors this year, according to a Bloomberg Intelligence survey. The Midland and Delaware basins within the Permian helped the oilfield reach a new high of $26 billion in merger and acquisition activity last year. This week other parts of Texas and Oklahoma began to shine, with the Granite Wash Basin adding five rigs and the Barnett Basin adding two. “The Granite Wash is located in the Mid-Continent region, which is seeing a return of private operators,” said Cosgrove. “Given the rise in oil prices, this has become one of the basins that we anticipate will grow.” By Bailey Lipschultz

U.S. drillers add oil rigs for sixth week in a row: Baker Hughes

July 24 - October 31, 2013

U.S. drillers added oil rigs for a sixth consecutive week, extending a nine-month recovery as shale producers ramp up spending to take advantage of a recovery in oil prices. Drillers added five oil rigs in the week to Feb. 24, bringing the total count up to 602, the most rigs since October 2015, energy services firm Baker Hughes Inc said on Friday. During the same week a year ago, there were 400 active oil rigs. Since crude prices first topped $50 a barrel in May after recovering from 13-year lows last February, drillers have added a total of 286 oil rigs in 35 of the past 39 weeks, the biggest recovery in rigs since a global oil glut crushed the market over two years starting in mid 2014. The oil rig count plunged from a record 1,609 in October 2014 to a six-year low of 316 in May as U.S. crude collapsed from over $107 a barrel in June 2014 to near $26 in February 2016. On Friday, U.S. crude futures were up about 1 percent on the week but lower on the day at around $54 a barrel on Friday, amid the market's concerns over whether a surge in U.S. production will dampen efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers to drain a global oil glut. [O/R] Production increases in the United States, predominantly from onshore shale plays, could potentially limit further increases in oil prices during 2017/18. Futures for the balance of 2017 were trading around $54.75 a barrel, while calendar 2018 was fetching less than $54.40. U.S. producers have signaled higher capital spending and further production growth, perhaps beyond what many analysts expect, Citi Research said in an investor note this week. "The global crude stock draws expected would be partially offset by the outperformance of U.S. production, which might upset calculations of core OPEC countries in lifting prices," Citi said. Oil and gas producer Apache Corp said on Thursday it would spend $3.1 billion in 2017, 63.2 percent more than it did last year, joining Exxon Mobil Corp, Chevron Corp and Hess Corp in boosting their capital budgets. The surge in drilling activity can be seen in the oilfield service industry. Investment bank Raymond James, which predicts the rig count could approach 1,000 by the end of 2018, estimated frac sand demand would hit record levels this year at roughly 55 million tons and exceed 80 million tons by next year, 60 percent above 2014 levels, due in large part to producers requiring more sand per well. (Reporting By Jarrett Renshaw; Editing by Marguerita Choy)

Energy Transfer to expand in Mont Belvieu with $385 million project

July 24 - October 31, 2013

Energy Transfer to expand in Mont Belvieu with $385 million project Posted by Jordan Blum Date: February 23, 2017 Dallas-based Energy Transfer Partners said it plans to expand its Lone Star campus east of Houston in Mont Belvieu with the addition of a $385 million fractionator and storage system. Energy Transfer said it’s responding to the increasing production levels coming from the Permian Basin that’s flowing into Houston. Energy Transfer’s planned fractionator would take streams of natural gas liquids that are collected during oil production, and then separate the liquids into individual products like ethane, propane and butane. The expansion also would include a 3 million barrel underground storage cavern. The project represents Energy Transfer’s fifth fractionator under its Lone Star NGL subsidiary. The project is expected to be completed by September 2018. The fractionator would process up to 120,000 barrels a day, increasing Energy Transfer’s overall processing capacity to 540,000 barrels a day at Mont Belvieu. Energy Transfer last year completed its Lone Star Express Pipeline to take natural gas liquids from West Texas more than 500 miles to Mont Belvieu.

ExxonMobil Plans $20 Billion in Manufacturing Investments in Gulf Region

July 24 - October 31, 2013

ExxonMobil will invest $20 billion at 11 new and existing sites in the next 10 years to expand its manufacturing and export capacity along the Gulf of Mexico, the company announced March 6. The expansion program, which ExxonMobil is calling “Growing the Gulf,” will involve chemical, refining, lubricant and liquefied natural gas projects at facilities along the Texas and Louisiana coasts. Investments began in 2013, ExxonMobil said, and are expected to continue through at least 2022. “The United States is a leading producer of oil and natural gas, which is incentivizing U.S. manufacturing to invest and grow,” said Darren Woods, Exxon chairman and CEO, in a speech at the CERAWeek energy conference in Houston. “We are using new, abundant domestic energy supplies to provide products to the world at a competitive advantage resulting from lower costs and abundant raw materials. In this way, an upstream technology breakthrough has led to a downstream manufacturing renaissance.” Woods emphasized that the projects, which he said involves "building a manufacturing powerhouse" along the U.S. Gulf Coast, will help the company increase its exports to “fast growing nations.” “Overseas markets underpin our investment. The supply is here; the demand is there. We want to keep connecting those dots,” said Woods. Woods said the projects could produce more than 45,000 jobs, and that many would be high-skilled jobs paying $100,000 per year. He added that those jobs also would have a multiplier effect, creating further jobs in the surrounding communities. President Donald J. Trump praised the plan. ““This is exactly the kind of investment, economic development and job creation that will help put Americans back to work,” the president said. “Many of the products that will be manufactured here in the United States by American workers will be exported to other countries, improving our balance of trade. This is a true American success story.” Calling it “great news,” NAM President and CEO Jay Timmons said “Manufacturers depend on affordable, accessible energy to power their operations and as a raw material. Without the expanded domestic energy production of recent years, an announcement like today’s wouldn’t be possible. Across the United States, manufacturers are being empowered to expand and grow because of access to affordable energy, and America’s energy industry is boosting manufacturing jobs in the United States. Grow the Economy, Reduce Emissions In his CERAWeek address, Woods stressed that growth in energy resources and the economy need not come at the expense of the environment. “I want to challenge the assumption made by many that a growing economy and a cleaner environment are mutually exclusive, that as we step forward in developing more oil and natural gas, our environment, including our climate, must step back,” said Woods. The ExxonMobil CEO said the company was investing in a variety of technologies that would make “a dream – growing the economy while reducing emissions – a reality.” Woods noted that ExxonMobil has an interest in about one-fourth of the world’s carbon capture and storage capacity. Last year, he said, the company announced a technology partnership to explore whether carbonate fuel cells can be used to economically capture carbon dioxide at scale. “By capturing CO2 in gas-fired power generation before it is emitted, this potential game-changer enables us to envision a future in which hydrocarbon use and de-carbonization go hand-in-hand,” Woods said. Woods said ExxonMobil was also exploring the production of biodiesel from agricultural waste and working with Synthetic Genomics to develop biofuels from algae. “This program draws upon scientists from ExxonMobil and SGI to engineer new strains of algae that could enable production, at scale, of this low-emissions fuel,” he told the CERAWeek audience. In the manufacturing process area, said Woods, the company has developed “a new technology we call ‘cMIST’ that enables us to more efficiently dehydrate natural gas. cMIST reduces the surface footprint for this process by 70%. It also reduces energy use and emissions.” Woods also noted research with Georgia Tech on a new membrane for the process of reverse osmosis that can convert oil and natural gas to higher-value fuels and chemicals. “If we can scale it, this breakthrough could reduce global carbon-dioxide emissions up to 45 million tons, annually,” he said. At the company’s refineries and chemical plants, said Woods, ExxonMobil is deploying “new systems to recover gas that would otherwise be flared; specialized cameras to detect fugitive emissions so that they can be stopped; [and] advanced burners to minimize emissions….” “These applied technologies are good for the environment, and they’re good for business,” Woods said.

Smart Vehicles On the Move at SXSW 2017

July 24 - October 31, 2013

For the past 30 years, South By Southwest (SXSW) has attracted people from all over the world to Austin, Texas, to meet, learn and share ideas, and since 1994, SXSW Interactive has focused on cutting-edge technologies and their potential to change and improve the world. At the 2017 SXSW Conference, one of the main themes was how technology is going to reshape the future of transportation and mobility. In particular, there were three key areas that were brought up multiple times. To read more follow the URL lilnk.

Texas oil and gas drilling climbs in March, but well completions slip

July 24 - October 31, 2013

Texas shale producers applied for more than 1,300 oil and gas drilling permits last month with the majority awarded in the Permian basin, the most active U.S. oil patch, according to the state's energy regulator. Despite a near tripling of new well permits, to 1,310 wells compared with 511 during the same month last year, the Texas Railroad Commission data also showed a decline in the number of well completions, the final step before production can begin. "This is a clear indication that drilling activity will increase at a steady pace compared to last year," said Ed Longanecker, president of trade group Texas Independent Producers and Royalty Owners Association. For more, click on URL for full article.

Drilling permits surge, but not all shale wells completed

July 24 - October 31, 2013

Texas issued more than 1,300 drilling permits in March, twice as many as the same month in 2015. Rigs are rising and companies are rushing back to the shale patch, and to the Permian Basin in particular. But at the same time, well completions were lower than they were last year. The result will be a rise in production but also an increase in the number of drilled but uncompleted wells (DUCs), which will leave a level of production sitting on the sidelines.

Exxon Mobil Plans Multi-Billion Dollar Plant Near Texas Gulf

July 24 - October 31, 2013

PORTLAND, Texas (AP) — Exxon Mobil Corp. and a Saudi partner plan to build a multi-billion dollar petrochemical plant near the Texas coast, Texas' governor said Wednesday. The project will be a venture involving Exxon and Saudi Arabia Basic Industries Corp. Exxon officials have said it'll be among the largest ethane steam cracker plants in the world, with an opening scheduled for 2024. The plant will be built in Portland, just north of Corpus Christi, on roughly 1,300 acres (526 hectares). Estimated to cost about $10 billion, the plant will produce components used to make polyester, anti-freeze, plastic bottles and other items. In formally announcing the project, Gov. Greg Abbott said the plant "illustrates that our business climate is exactly what leading and growing companies are seeking when investing in their future." Yousef Abdullah Al-Benyan, CEO of SABIC, added: "We are focused on geographic diversification to supply new markets." Exxon and its Saudi partner also considered another Texas site and two in Louisiana for the project. The project has received state and local tax incentives. The Gregory-Portland Independent School District board voted last month to approve $1.2 billion in tax incentives, and San Patricio County commissioners OK'd a $210 million package. Abbott said Wednesday that more than $6 million was offered in state tax breaks. Officials said the project is expected to create thousands of jobs, an important consideration for leaders in San Patricio County. The Corpus Christer Caller-Times reported the area lost more than 800 jobs in the last three months of 2016 with the closure of a plant and a series of layoffs at a manufacturing company. But the project has also generated criticism. Some residents circulated a petition citing safety and environmental concerns. The plant is set to be built less than 2 miles (3.22 kilometers) from the district high school.

U.S. Shale Roars Back at OPEC

July 24 - October 31, 2013

OPEC may get its members to agree to continue to tamp down oil production, but it will be a Pyrrhic victory. The biggest threat to the 13-member group’s dominance has been U.S. shale. In November 2014, the Organization of Petroleum Exporting Countries decided to keep production levels high in the hope it could maintain market share. But that was a difficult task to begin with, and since then, U.S. shale producers have become even more efficient. Read more at link

US Oil Rig Count Rises For 19th Straight Week

July 24 - October 31, 2013

Baker Hughes BHI, +1.11% on Friday reported that the number of active U.S. rigs drilling for oil climbed by 2 to 722 rigs this week. That marked a 19th weekly rise in a row, but the increase was the smallest weekly rise of the year. The total active U.S. rig count, which includes oil and natural-gas rigs, climbed by 7 to 908, according to Baker Hughes. Oil prices appeared unfazed in the wake of the data. July West Texas Intermediate crude CLN7, -1.00% was up 62 cents, or 1.3%, to $40.52 a barrel on the New York Mercantile Exchange, unchanged from where it traded before the data.

California Fracking Boom Set to Lift U.S. Production to New Record

July 24 - October 31, 2013

The California Division of Conservation has received a 543 percent increase in “Oil & Gas Notices” this year, as a Golden State fracking is set to lift the U.S. to a production record. For the full article, follow the link

Why OPEC Plans Oil Cuts Into 2018: Aramco’s Coming IPO

July 24 - October 31, 2013

VIENNA—Saudi Arabia is pushing the OPEC oil cartel and other big producers gathered here this week to extend crude production cuts for another nine months. The reason: the timing of the blockbuster IPO of Saudi Arabian Oil Co., people familiar with the matter said. For the full article, follow the link

Dallas Fed Survey: Texas Manufacturing “Reaching Levels Not Seen Since April 2014.”

July 24 - October 31, 2013

Texas manufacturing activity picked up pace in May, surging to its highest level in three years as factories used more of their capacity and produced more goods, the Federal Reserve Bank of Dallas said Tuesday. The Texas production index, a key measure of manufacturing activity, increased 7.9 points to 23.3, according to the Dallas Fed’s Texas Manufacturing Outlook Survey. The index, which polled 113 Texas companies between May 16 and 24, reached its the highest level since April 2014. The index measures the amount of goods that companies produce. It was the 11th consecutive month of growth for Texas manufacturers, and more than a third of respondents said they were using more of their capacity, the Dallas Fed said. For the entire story, follow the link

GE Oilfield Giant is Ready to Prosper, If Recovery CooperatesJul 4, 2017 Bloomberg

July 24 - October 31, 2013

General Electric Co.’s new oilfield services behemoth is poised to capitalize on a recovery from the worst crude crash in a generation -- except no one is sure when that will actually happen. The merger of GE’s oil and gas business with Baker Hughes Inc. officially closed Monday, creating a provider of services and equipment that’s second in size only to Schlumberger Ltd. While Lorenzo Simonelli, the GE (IW 500/6) oil executive who will lead the new Baker Hughes, says his company carries built-in advantages over its rivals, the launch comes at a time of growing risks and uncertainty in the oil market at large. Shale explorers have been leading a fresh drilling boom, boosting budgets 10 times faster in the U.S. than the rest of the world. Whether that growth continues, though, is far from certain. After almost six months of growth, the number of rigs targeting oil fell last week and production declined. That hints at growing caution among producers for next year.

Toyota Marks Opening of New US Headquarters in Texas

July 24 - October 31, 2013

The AP (7/6) reports that “Toyota is officially opening its new North American headquarters in Texas.” The AP adds, “The $1 billion project includes a new campus in Plano, outside Dallas,” and the company “plans to move thousands of employees from California and Kentucky and says it will eventually employ up to 4,000 people at the Plano site – including about 1,000 new local hires.” For the full story, follow our link.

Women are Oil Industry’s Great ‘Untapped Reserve’ Says Study

July 24 - October 31, 2013

Women are "chronically" under-represented in the oil and gas industry and the sector is losing out by failing to draw on their skills, a study said on July 12. Women account for just 22% of workers in the oil and gas sector, said the joint study by the World Petroleum Council and Boston Consulting Group entitled "Untapped Reserves: Promoting Gender Balance in Oil and Gas." To read more, visit our link in resources.

EIA: US Crude Stockpiles Fall The Most In Nearly A Year

July 24 - October 31, 2013

NEW YORK, Aug 16 (Reuters) - U.S. crude oil inventories fell for the seventh consecutive week in their largest drawdown in nearly a year while exports and production continued to rise, the Energy Information Administration said on Wednesday. Crude inventories fell 8.95 million barrels in the week to Aug. 11, nearly three times analysts' expectations for a decrease of 3.1 million barrels and the largest draw in since the week to Sept. 2. At 466.5 million barrels, crude stockpiles were at their lowest since January 2016. Including emergency reserves, crude stocks were at 1.15 billion barrels, the lowest levels since October 2015, according to EIA data. To read full article, follow the link provided

TEXAS Oil and gas workforce grew again in June — Federal Reserve

July 24 - October 31, 2013

New data from the Federal Reserve Bank of Dallas shows that the oil and gas industry added 4,300 jobs in June, compared to May. Many of those new jobs were in oilfield services, a sign that rising drilling activity was lifting employment. Follow the link provided to read more

NEW EMAIL FOR ACCOUNTING DEPARTMENT

July 24 - October 31, 2013

We now have a new email for our accounting group here at Champions Machine Tool Sales, Inc. If there are questions or concerns regarding billing, payments, or account status, please feel free feel to contact us at accounting@championscnc.com now. Someone from the accounting department will respond to your request quickly without the hassle of leaving voicemail and waiting on a return call.

DowDuPont Announces Plans For New Ethylene, Plastics Plants On Texas Gulf Coast

July 24 - October 31, 2013

The newly merged DowDuPont said Thursday it's opening its new ethylene and plastics plants in Freeport, making the nation's largest chemical giant the first to start up a major ethylene complex along the Texas Gulf Coast. The complex is the crown jewel of the old Dow Chemical's recent $6 billion expansion along the Gulf Coast. The chemical company will go back to being just Dow once DowDuPont splinters out into three separate companies in a year or so. To read the full story, click on the link to visit.

Manufacturing Entrepreneurs: Tales of Taking the Leap

July 24 - October 31, 2013

What does it take to found a manufacturing company in the United States? Try disruptive ideas, tenacity and a desire to make it in America for a start. “I know from very hard won experience that start-ups are enormously difficult and risky and chances are you’re not going to succeed,” says Kevin Czinger, the CEO of Divergent 3D, a company developing new technology for the automotive industry. “You’re always playing against the odds.” Czinger’s “hard won experience” is based on co-founding CODA Automotive in 2009 to sell a new electric car. The company was only able to sell about 100 cars before it was forced to seek bankruptcy protection in 2013. For Full article, click on the provided link.

Bloomberg: US Chemicals Industry “Rocketing Back.”

July 24 - October 31, 2013

Bloomberg News (11/3, Kaskey) reported that after enduring years of under-investment, the US chemical industry is revitalized. “Today,” Bloomberg wrote, “Dow, Exxon Mobil Corp., and Chevron Phillips Chemical Co. are putting the finishing touches on multibillion-dollar factories along the Texas Gulf Coast,” and each are “part of $185 billion in proposed and recently completed investments.” The article quoted Vertical Research Partners Chemical Industry Analyst Kevin McCarthy saying, “The US is punching above its weight at the moment “in the chemical sector. An IHS Markit report is cited saying that “a torrent of cheap US natural gas has made the country among the most profitable places to produce chemicals, beating out the Middle East in attracting projects. US exports of polyethylene plastic to Asia will rise more than fivefold by 2020.” Bloomberg added, “Almost 20 factories are being built or expanded to convert gas liquids such as ethane and propane into ethylene, the most used petrochemical and the main ingredient in polyethylene plastic,” with the largest “an $11 billion complex being built near Lake Charles, La., by South Africa’s Sasol Ltd.

U.S. shale producers promise both higher output and returns

July 24 - October 31, 2013

Reuters (11/3, Scheyder) reported, “US shale producers are telling investors impatient for better returns that they can keep boosting oil output aggressively and do so while still making money for shareholders.” Investors have “pushed top US shale companies to focus on returns, rather than higher output, a move that threatened to slow the breakneck growth in supply sparked by the shale revolution in the world’s top oil consumer.” Reuters added that “at least seven of the largest US shale companies, including Noble Energy Inc and Devon Energy Corp , forecast 10 percent or better production gains this quarter in the Permian Basin of West Texas and New Mexico, the largest US oilfield.” Todd Heltman of Neuberger Berman, a shale investor, said “I’d like to think the industry is changing for the better. Investors are more focused on return metrics.”

Oil Recovery Drives Texas Firms To Hire 30,000 Workers In Past Year

July 24 - October 31, 2013

The Houston Chronicle (11/6, Eaton) reports, “Texas oil companies have hired more than 30,000 workers over the past year, a sharp turnaround after they laid off a third of the industry’s statewide workforce during the oil bust.” The number of oil and gas workers in the state “reached more than 222,000 in September, up 16 percent from about 192,000 in the same month last year, the lowest point since the Great Recession in 2009.” The article quotes a statement by Ingham’s Texas Petro Index, “a measure of activity in the business of pumping oil from the earth,” saying, “Crude oil prices in Texas have been the essence of stability for more than a year. Demand is beginning to show signs of recovery.”

U.S. drillers add the most oil rigs in a week since June: Baker Hughes

July 24 - October 31, 2013

Reuters (11/10, DiSavino) reported that “US energy companies added the most oil drilling rigs in week since June as crude prices traded up to their highest levels since the summer of 2015,” as the energy services firm Baker Hughes said drillers brought 9 oil rigs on line during the week of November 10, “bringing the total count up to 738.” The overall rig count “is still much higher than a year ago when only 452 rigs were active.” The Houston Chronicle (11/10, Eaton) reported that the total US rig count, counting oil and gas, “climbed to 907 across the United States, with oil rigs accounting for the entire increase.” The Wall Street Journal (11/10, Al-Muslim, Subscription Publication) also reported.

U.S. oil production surged in September as Texas rebounded from Harvey

July 24 - October 31, 2013

The nation's oil production climbed nearly 300,000 barrels a day in September, reaching the highest level since its most recent peak in April 2015, the Energy Department said Thursday.
Energy companies pumped 9.48 million barrels of oil a day in September, up 3.2 percent compared to the 9.19 million barrels a day produced in August.

US Manufacturing Stays Strong in November

July 24 - October 31, 2013

The manufacturing sector continued to grow at an above-average rate in November, as the impact of back-to-back hurricanes over the summer recedes, according to an industry survey released on Dec. 1.

Output spiked and employment remains strong to produce "a really strong report" on the sector, the Institute for Supply Management (ISM) said.
To read more, click on the link provided.

US Fuels the World as Shale Boom Powers Record Oil Exports

July 24 - October 31, 2013

(Bloomberg) -- The world’s largest oil consumer exported more hydrocarbons than ever before in 2017 and shows no signs of slowing down.

You name it -- crude oil, gasoline, diesel, propane and even liquefied natural gas -- all were shipped abroad at a record pace. While the surge comes many years after the shale boom started, it can be traced straight back to the growth of horizontal drilling and fracking. U.S. exports are poised to expand even further, as the fear of peak oil supply has all but vanished just as a new demand threat emerges in the form of electric vehicles.

To read more, visit our link provided for the full article at Rigzone.com

US Manufacturers Are Really Optimistic Says NAM

July 24 - October 31, 2013

Manufacturers’ optimism has risen to unprecedented heights amid the legislative progress made on tax reform, according to the results of the Manufactures' Outlook Survey for the fourth quarter of 2017.

The study, conducted by The National Association of Manufacturers (NAM), found that 94.6% of respondents say they are positive about their own company’s outlook.

To read more, visit our link to read full article.

Manufacturers React to Congressional Passage of the Tax Bill

July 24 - October 31, 2013

Manufacturers will save about $261 billion over the next decade thanks to the new Tax Cuts and Jobs Act. On paper, that should lead to new investments — in equipment, in workforce and beyond.
Steve Staub was headed west on Interstate 70 on Wednesday afternoon, back to his factory in Dayton after a meeting in Columbus with the Ohio Manufacturers’ Association, when he turned on the radio and heard the news that Congress had passed the Tax Cuts and Jobs Bill. Around that same time, over in Washington, D.C., President Donald Trump walked from the Oval Office to the White House lawn Wednesday to share his comments on his first major legislation.

“I campaigned on the fact that we’re not going to lose our companies anymore,” Trump said. “We are going to see at least $4 trillion come back into this country.”

Click on the link to read the entre article.

All That New Shale Oil May Not Be Enough as Big Discoveries Drop

July 24 - October 31, 2013

Three years after causing an oil-price crash, the shale boom may not be enough to meet rising global demand because the industry has cut back so sharply on higher-risk mega-projects.
Discoveries of new reserves this year were the fewest on record and replaced just 11% of what was produced, according to a Dec. 21 report by consultant Rystad Energy. While shale wells are creating a glut now, without more investment in bigger, conventional supply, the world may see output deficits as soon as 2019, according to Canadian producer Suncor Energy Inc.

“Tight rock is not going to solve the global supply-demand issue,” said Adam Waterous, chief executive officer at the Calgary-based Waterous Energy Fund, which invests as much as C$400 million (US$265 million). “It's going to take a long time for those mega-projects to come back on.”

Hydraulic-fracturing technology made it possible to squeeze crude from tight-rock formations and turned the U.S. into the world’s top producer. But it also sent the global benchmark for oil tumbling from $115 a barrel in 2014 to less than $55 in October. That’s eroded the incentive for companies to invest billions of dollars on new reserves that take years to develop but can produce for decades.

Oil prices would need to climb to $80 and remain at that level for two years to justify the costly deep-water projects off the coasts of West Africa or Brazil, Waterous said. And even then, it could take a decade before crude from those investments would arrive on the market, he said. Prices topped $66 this week.

Click on the link for the full story

US Oil Production Increases With Fewer Workers, Rigs.

July 24 - October 31, 2013

U.S. oil production surged to a 46-year record in October.

The Energy Department said the nation's output of crude oil jumped 1.8 percent to 9.64 million barrels a day. Morgan Stanley said shale drillers pumped at the fastest rate in nearly three years.

And they did it with half the rigs they had in the boom times. In Texas, production has surged even though companies have only replaced a third of the workers they cut in the oil downturn.

The Energy Department expects U.S. oil production to reach a new all-time record next year. But there's still no reason yet for the rigs and jobs that were discarded in the bust to come back.

"We are supplying the needs of the market with way fewer jobs," said Karr Ingham, an Amarillo-based economist who studies the Texas oil industry.

HoustonChronicle.com: Oil climbs above $60 as recovery accelerates

Ingham estimates Texas had around 300,000 upstream oil and gas jobs in December 2014, when the size of that workforce hit its most recent peak. That fell to 192,000 in late 2016. Since then, drillers have brought some 31,000 jobs back.

"What would it take to get us back to 300,000 jobs? A sea change in the global demand picture," Ingham said, meaning global oil demand would have to rise high enough to bring oil prices up to at least $80 a barrel, or a higher price that would stimulate investments and hiring. "Is there any reason to expect that? I don't think so."

Oil producers have boosted U.S. output by about 1.1 million barrels a day since the nation's production hit its annual low in 2016 of 8.5 million barrels a day. But in the Texas oil and gas workforce, "we've only added back a third of what was lost."

Congratulations Kevin Harvick on win #100

July 24 - October 31, 2013

Event: Las Vegas 400 (Round 3 of 36) Series: Monster Energy NASCAR Cup Series Location: Las Vegas Motor Speedway (1.5-mile oval) Format: 267 laps, broken into three stages (80 laps/80 laps/107 laps) Start/Finish: 2nd/1st (Running, completed 267 of 267 laps) Point Standing: 1st (135 points, three ahead of second place)

Race Winner: Kevin Harvick of Stewart-Haas Racing (Ford) Stage 1 Winner: Kevin Harvick of Stewart-Haas Racing (Ford) Stage 2 Winner: Kevin Harvick of Stewart-Haas Racing (Ford)

Stage 1 Recap (Laps 1-80):

Kevin Harvick started second and finished first, collecting 10 bonus points and a playoff point. The No. 4 Jimmy John’s Ford quickly jumped to the lead on just the second lap of the race. He maintained the top spot until making a trip to pit road for a scheduled stop on lap 38 for four tires and fuel. Harvick raced back to the lead on lap 50 and maintained the top spot through to the conclusion of Stage 1. At the end of Stage 1, Harvick made a stop, where the team changed four tires and added fuel. Stage 2 Recap (Laps 81-160):

Started first and finished first, collecting 10 bonus points and another playoff point. The 2014 Cup Series champion picked up where he left off at the end of Stage 1 by jumping out to a large lead. The “Freaky Fast” driver maintained the top spot until making a green-flag pit stop on lap 121 to get four tires and fuel. As green-flag stops cycled through, Harvick was back out front on lap 125, cruising to the win in Stage 2. The Jimmy John’s driver stopped during the caution for four tires and fuel. He returned to the track in fourth to start the final stage. Final Stage Recap (Laps 161-267):

Started fourth and finished first, collecting five playoff points. Harvick restarted the race in fourth place and quickly noted that the car handled on the tight side while in traffic. To address the issue, the team used a scheduled pit stop on lap 178 to make wedge and air pressure adjustments, change four tires and add fuel. With the adjustments Harvick was able to make his way to second place before a caution came out on lap 183. Noting the importance of track position, the team elected to stay out during the caution. Green-flag racing resumed on lap 195, and Harvick quickly jumped to the top spot. Harvick made one last trip to pit road for a scheduled stop on lap 225, where the team simply changed four tires and added fuel. Within a couple of laps Harvick was back out front and remained there to pick up his second consecutive Cup Series win of 2018. Notes:

Harvick’s win in the Las Vegas 400 was the 100th of his career in NASCAR’s top-three series. He has 39 Cup Series wins, 47 Xfinity wins and 14 Truck Series wins. He is only the fourth driver in NASCAR history to accomplish the feat, joining Richard Petty (200 wins), Kyle Busch (184) and David Pearson (106 wins). This was Harvick’s second NASCAR Cup Series win of 2018, his second at Las Vegas and the 39th of his career. It was his 16th NASCAR Cup Series victory since joining SHR in 2014. Harvick’s victory in the Las Vegas 400 marked the 45th overall win for Stewart-Haas Racing (SHR). It was the organization’s 41st points-paying Monster Energy NASCAR Cup Series win and its third at Las Vegas. Tony Stewart won at Las Vegas on March 11, 2012, and Harvick won on March 8, 2015. This was SHR’s fifth NASCAR Cup Series victory with Ford. The team won its first race with Ford when Kurt Busch captured the 2017 Daytona 500. Harvick’s margin of victory over second-place Kyle Busch was 2.906 seconds. This was Harvick’s second win/fifth top-five/seventh top-10 finish in 18 career NASCAR Cup Series starts at Las Vegas. He finished first in Stage 1 to earn 10 bonus points and one playoff point. He finished first in Stage 2 to earn an additional 10 bonus points and another playoff point. Harvick led five times for a total of 214 laps to bring his laps-led total at Las Vegas to 438. There were four caution periods for a total of 29 laps. Nine of the 37 drivers in the Las Vegas 400 finished on the lead lap. Kevin Harvick, driver of the No. 4 Jimmy John’s Ford Fusion for Stewart-Haas Racing:

“We have definitely had three good racecars with the Xfinity Car and the Cup car, and we had a good racecar at Daytona but got caught up in a wreck. As you look at the last two weeks and our 1.5-mile program in general, it has been really good since I started here at SHR. They put a lot of effort into everything we do from every standpoint to get these cars going like they are. I have to thank all of our partners – Jimmy John’s, Busch, Ford, Mobil 1, Outback, Hunt Brothers, Morton Buildings, Textron Off Road, Liftmaster. Big thanks to everyone from Stewart-Haas Racing, Gene (Haas) and Tony (Stewart) – it is fun to have them here when we win. Everybody who helps put this thing on the racetrack – we couldn’t do it without them. And the fans for coming out to the racetrack today. We really appreciate you all coming out. It is always fun for me to win on the West Coast, and I didn’t have a lot of luck here until I came to SHR. It is great to win on the West Coast for me.”

Oil Gains Most in Two Weeks as Storage in Key Hub Seen Shrinking

July 24 - October 31, 2013

(Bloomberg) -- Crude rose the most in two weeks as stockpiles at the largest U.S. storage hub are seen draining further.

Futures gained 2.2 percent Monday after data-provider Genscape Inc. was said to report that inventories dropped in Cushing, Oklahoma, according to two people with knowledge of the report. Tanks there are already at the lowest level since 2014, following 10 straight weeks of decline. Signals that the American economy is booming are also supporting crude prices.

Draws at Cushing will continue, said Bob Yawger, director of futures at Mizuho Securities USA Inc. in New York, as long as near-term futures contracts trade higher than later ones, a market structure known as backwardation that discourages storage. “Why would anybody want to auto-lose money by storing crude oil?” Yawger said.

U.S. service industries expanded in February near the fastest pace in at least a decade, signaling the economy is on track for steady growth this quarter, according to a survey from the Institute for Supply Management on Monday.

The U.S. benchmark crude has traded mostly above $61 in past weeks as the Organization of Petroleum Exporting Countries works to cut output as part of their supply agreement. The International Energy Agency said that closer to 2023, global markets will start to tighten and warned that more investment is needed to meet growth in consumption and to make up for production lost to natural declines.

Crude inventories in Cushing decreased 600,000 barrels last week, according to a forecast compiled by Bloomberg.

“The trend in global inventories shows that the market is fundamentally under-supplied and that emphatically remains the case,” Pavel Molchanov, an energy research analyst at Raymond James in Houston, said by telephone. The drawdown in inventories should continue through to near the end of this year, he said.

West Texas Intermediate for April delivery advanced $1.32 to settle at $62.57 a barrel on the New York Mercantile Exchange. Total volume traded Monday was about 18 percent below the 100-day average.

Brent for May settlement rose $1.17 to end the session at $65.54 a barrel on the London-based ICE Futures Europe Exchange. The global benchmark traded at a $3.15 premium to May WTI.

Yet, concern that U.S. crude output, already at a record, will continue to climb has capped any significant rallies. The nation will dominate global oil markets for years to come, satisfying 80 percent of global demand growth to 2020, the IEA also said in its report on Monday.

And according to consultants Wood Mackenzie Ltd., U.S. crude exports will jump to near 4 million barrels a day by the mid-2020s, rivaling shipments from Iraq and Canada.

In the U.S., “this spike in exports over the past several months now has definitely impacted the efforts of OPEC and non-OPEC to raise prices,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund.

Other oil-market news:

Libya’s Sharara oil field, the country’s biggest, is said to begin pumping after the reopening of a pipeline to the Zawiya refinery. Gasoline futures climbed 1.8 percent to settle at $1.9349 a gallon on Monday. CERAWeek by IHS Markit, the largest gathering of energy executives and officials in the Americas, began on Monday, with OPEC Secretary-General Mohammad Barkindo scheduled to dine with shale executives in Houston. U.S. crude stockpiles rose 2.5 million barrels, according to the median estimate of analysts surveyed by Bloomberg.

Oil Explorers Lift Rig Count to 800 for First Time Since 2015

July 24 - October 31, 2013

U.S. oil explorers raised the rig count to 800 for the first time in almost three years amid booming domestic and overseas demand for crude and petroleum-based fuels.

Drillers have been accelerating exploration in an almost-unbroken streak since the beginning of November, vaulting American crude output to a record of more than 10 million barrels a day. The unrelenting pace of expansion signals even bigger production jumps yet to come, even as concerns about excess supplies recently weighed on oil prices.

From Recycled Magnets to Polymers, New Materials Take off in San Marcos, Texas

July 24 - October 31, 2013

A tour of manufacturing in and around Texas State University highlights product innovation born from research During a visit to San Marcos, Texas, last month, I visited four diverse manufacturers, both in size and product type. Three of the four are developing products using new materials—examples of the spillover of technology research related to the Materials Science, Engineering and Commercialization (MSEC) program at Texas State University.

Here is a look at where we visited, who we talked with and the exciting mix of technology and manufacturing we saw, from recycled rare earth magnets to polymers for Formula One race cars. For more of the article, use the link provided.

Reshoring Is on the Rise: What It Means for the Trade Debate

July 24 - October 31, 2013

The 2017 data is in, and job announcements are up substantially for U.S. manufacturing. Reshoring and foreign job announcements (FDI) surged in 2017 to over 170,000 U.S. manufacturing jobs. This is strong evidence that work can and will be successfully brought back—and is especially relevant in a time of intense debate over tariffs and the trade deficit.

To read the full article, click on the provided link.

US Cutting Tool Consumption Up 6% in Q1

July 24 - October 31, 2013

Manufacturing activity paced cutting-tool consumption to $207.08 million during March, up 8.8% for the month. The ongoing expansion of the industrial economy paced another month of growth in U.S. manufacturing’s cutting-tool consumption, up 8.8% from February to $207.08 million during March. That total represents a 3.5% rise over the year-ago (March 2017) total, and brings the 2018 year-to-date total for cutting-tool consumption to $581.02 million, up 6.0% versus the January-March 2017 total.

The figures are supplied by the U.S. Cutting Tool Institute and AMT – the Assn. for Manufacturing Technology in their monthly Cutting Tool Market Report. The CTMR is based on the figures reported by participating companies, and represent the majority of the U.S. market for cutting tools. “The March cutting tool numbers continue to tell a story of strength and growth for our industry, however there are potential negative clouds forming on the horizon,” commented said Steve Stokey, EVP/owner of Allied Machine and Engineering, and AMT chairman. He noted

specifically the prospect of tariffs on steel imports introducing market uncertainty as manufacturers’ purchasing agents seek to line up new suppliers.

“Shortages will cause disruptions and could impact growth as we move forward,” according to Stokey. Nevertheless, sales of cutting tools are an indicator of current manufacturing activity, as those products represent “a primary consumable in the manufacturing process,” according to the CTMR authors. The strength of the March report demonstrates that growth in manufacturing activity over the past year.

“The cutting-tool industry continues to show strong growth in 2018. However, the industry is challenged with increasing raw material costs, record low unemployment and insecure international trade, because of changing global trade policies,” stated Brad Lawton, Chairman of AMT’s Cutting Tool Product Group.

US Seen Cutting Oil Imports to Lowest Since Eisenhower

July 24 - October 31, 2013

The U.S. will cut its reliance on foreign oil to the lowest in more than 60 years as domestic crude output surges to record levels.

The Energy Information Administration sees net imports of crude and petroleum products dropping to 1.5 million barrels a day in 2019, the lowest level since Dwight Eisenhower was president.

The agency also raised its U.S. production outlook for both this year and next.

The forecast come as prices near $70 a barrel have encouraged drillers to turn the taps higher. Crude production in the U.S. is already at a record-high and the oil rig count hovers at levels last seen in March 2015.

Next year, crude production is seen averaging 11.86 million barrels a day, up from a prior forecast of 11.44 million a day, according to the EIA’s Short-Term Energy Outlook released on May 8.

Domestic output will average 10.72 million a day this year, still above the 1970 record of 9.6 million a day and raised from a 10.69 million a day forecast in an April report.

The U.S. government also reiterated that crude production will still top 11 million barrels a day in October.

The EIA decreased its forecasts for both global production and demand growth this year. Output is seen at 100.45 million barrels a day, down from 100.47 million previously, with demand growth at 100.28 million, compared with 100.31 million estimated previously.

The EIA also boosted its price forecasts for both WTI and Brent for this year and next. WTI futures have risen by 14% this year.

By Jessica Summers

OSHA Issues Direct Final Rule Clarifying Beryllium Standard

July 24 - October 31, 2013

OSHA's direct final rule (DFR) for its beryillum standard will become effective on July 4, 2018, according to the agency.

The DFR clarifies aspects of the standard for general industry as it applies to processes, operations, or areas where workers may be exposed to materials containing less than 0.1% beryllium by weight.

The rule also clarifies the definitions of Beryllium Work Area, emergency, dermal contact and beryllium contamination. It also explains provisions for disposal and recycling, and provisions that OSHA intends to apply only where skin can be exposed to materials containing at least 0.1% beryllium by weight.

Unless the agency receives significant adverse comments by June 4, the DFR will move forward in July.

XTO Energy Closes Headquarters; Relocates Hundreds to Houston

July 24 - October 31, 2013

XTO Energy, Inc., a subsidiary of ExxonMobil Corp., is closing its corporate headquarters in Fort Worth, Texas, which will affect a total of 1,200 employees, according to a letter sent to the Texas Workforce Commission (TWC).

The U.S. oil and natural gas producer plans to relocate its business activities to other company locations, primarily Houston, beginning June 1 and ending June 30, the letter states.

Of the 1,200 affected employees, 950 are management, professional or technical (MPT) positions and 250 are non-MPT positions.

“Satisfactorily-performing” MPT employees who relocate will be provided relocation benefits.

Seventy-five percent of the non-MPT employees have been reassigned to local positions with the company or will self-relocate to Houston, according to an XTO Energy emailed statement to Rigzone.

“Approximately 65 employees have either not been offered positions in Fort Worth or have chosen not to self-relocate to Houston and will be separated from the company effective June 30, 2018,” the email states.

Those 65 employees will receive a severance allowance.

“We recognize this decision impacts people’s lives, and it was only made with careful consideration to those people and our business,” XTO Energy said.

LyondellBasell bets on new technology, better plastics

July 24 - October 31, 2013

Houston Chronicle report, LyondellBasell is betting millions of dollars that new technology will give it an edge in the burgeoning market for polyethylene, the ubiquitous plastic that has fueled a construction and export boom along the U.S. Gulf Coast.

The Houston petrochemicals manufacturer has built a substantial portion of its $725 million plant in La Porte, a cutting-edge facility with technology designed to produce high-density polyethylene that’s stronger and more durable than its standard commodity counterpart. The plant is expected to begin operations next year to meet growing demand in emerging overseas markets.

The technology, dubbed “Hyperzone,” involves two chemical reactors to process ethylene, a natural gas-derived base material for plastic resins designed for use in pipes, bottles, bags, packaging and a range of other applications. The company says the reactors are designed in a way to allow it to tailor chemical properties to meet customer specifications.

LyondellBasell recently installed the largest of the reactors, a 12-story behemoth custom-made in South Korea and shipped about 11,000 miles to Houston. The company built a new heavy-haul road just to transport the 503-ton reactor to the construction site.

Jim Sheehan, a petrochemicals analyst with SunTrust Robinson Humphrey, said the technology improves processing efficiency and the durability of the finished product. The higher quality of the plastic means LyondellBasell can charge premium prices, he added, giving it some degree of insulation from fluctuations in polyethylene prices.

“It’s differentiated in the market because of its strength,” he said. LyondellBasell says the plastics made with Hyperzone technology are lighter weight and more resistant to cracks. The process is designed to produce stronger, safer pipes and to reduce the amount of material needed to manufacture household products and packaging.

For the entire article, click on the URL link

While offshore wind gets developed, Texas will likely stay onshore

July 24 - October 31, 2013

One of the world’s largest power companies is planning to pump $1 billion into new wind projects in Texas, confirming the state’s place as the nation’s largest producer of wind-driven energy.

The Spanish utility Iberdrola says the money will finance new wind farms with a combined generating capacity of 700 megawatts — enough to power some 140,000 Texas homes on a hot summer day. Those projects are part of the 33,000 megawatts of new wind resources that are under consideration or development in the state, according to the Electric Reliability Council of Texas, which manages about 90 percent of the state’s power grid.

Iberdrola’s new Texas projects will add to the 725 megawatts of wind power the company already operates in Texas through its American subsidiaries, Avangrid, Inc. of Orange, Connecticut and Avangrid Renewables of Portland, Oregon. Iberdrola’s largest wind farm, the 606-megawatt South Texas Coast Wind Farm, is located in Kenedy County, about 80 miles north of Brownsville.

Avangrid Renewables is developing the 286-megawatt Karankawa wind farm in Bee and San Patricio counties, which are just inland from Port Aransas and Aransas Pass north of Corpus Christi. Two other wind farms under development by Avangrid, the 200-megawatt Karankawa 2 in San Patricio County and 500-megawatt Comanche Run Wind farm in between Lubbock and Amarillo are listed in the state’s power generation development queue. “I think you are already doing things very well (in Texas),” Iberdrola’s CEO Ignacio Galán said while visiting San Antonio this week. “You are using all of the natural resources. This state has oil, gas, wind and sun.”

Iberdrola is a global energy company with a stock market value of $47 billion in 2017. In the first quarter of 2018 the company reported that it had over 13 million electricity customers worldwide and more than 48,000 megawatts of generation installed in 12 countries including the United Kingdom, the United States, Mexico and Brazil. About 60 percent of its power is generated from renewable sources, including wind, solar and hydroelectricity. In the United States the company operates some 6,400 megawatts of wind energy, enough to power some 1.3 million Texas homes.

Galán was in San Antonio Monday as part of a business delegation that met with Spain’s King Felipe VI and Queen Letizia. The royal couple were visiting San Antonio as part of the city’s celebrations related to the 300th anniversary of Spain’s founding of a colonial mission and presidio where the city is now.

Galán said that his company sees opportunities in offshore wind projects, which account for 544 megawatts or 3.3 percent of Iberdrola’s global wind fleet. The company operates about 15,533 megawatts of onshore wind.

The Spanish company is part of joint venture to develop developing a massive 800 megawatt offshore wind project 14 miles south of Martha’s Vineyard island in Massachusetts. Work on the Vineyard Wind project, a 50-50 partnership between Avangrid Renewables and Danish investment firm Copenhagen Infrastructure Partners, is expected to begin next year.

In Texas, however, offshore wind farms are likely a long way off, largely because of the strength of its onshore wind sector, which is concentrated on the plains of West Texas. Galán said there are still plenty of onshore resources in Texas that can be developed at much lower costs than offshore projects. An offshore wind farm can cost can cost nearly triple that of a onshore project, according to the International Energy Agency.

Anthony Logan of of the energy consultancy Wood Mackenzie said the United States has lagged Europe in the development of offshore windfarms in large part because it’s so much cheaper to build onshore, where equipment is more readily available and easier to transport. It’s also easier to recruit workers.

Developing offshore wind resources still relies on European expertise and equipment, Logan said, but companies willing to take on U.S. offshore projects now could have an advantage as that segment of the industry grows.

“We’re in an interim period where we’re still pretty reliant on European technology and European vessels and that gives Avangrid really strong step up in the overall U.S. offshore market,” Logan said. “They’re getting the first hand experience with large-scale U.S. offshore additions. That’s a very complicated market, it’s very different from onshore.”

In Texas, wind is gaining an increasing share of ERCOT’s market, producing 17.4 percent of power in 2017, up from 15.1 percent in 2016. Natural gas plants generated about 38.8 percent of ERCOT’ power last year, while coal and nuclear made up 32.2 percent and 10.8 percent respectively. Solar was less than 1 percent.

Only about 12.5 percent of the state’s wind resources are located in coastal counties, but a combination of factors may push more wind energy development toward the Texas Gulf Coast, said Joshua Rhodes, a research associate at the University of Texas at Austin’s Energy Institute

He said that large industrial, petrochemical and liquefied natural gas plants being built in Freeport and Corpus Christi will require large amounts of electricity, power that could be provided by coastal wind projects. Rhodes says West Texas wind is also facing transmission constraints and as more projects try to send power east to the state’s population centers.

That means that coastal projects closer to those population centers may gain advantages over West Texas wind.

San Antonio Opens Career-Themed High Schools.

July 24 - October 31, 2013

SAN ANTONIO, Texas — CAST Tech, San Antonio’s newest public high school, looks like an outpost of Google. Young people huddle over tablets, fiber optic cables run along the ceilings and a cybersecurity lab occupies the basement.

The school, located in the heart of San Antonio’s slowly revitalizing downtown, is just a stone’s throw from some of the city’s big employers. The financial firm USAA has offices five blocks away, and Frost Bank and tech incubator Geekdom are nearby, too. This makes it easy for business executives to pop by — and they do. In its first academic year, the school entertained dozens of local business leaders as guest speakers and, nearly every week, students welcomed tech employees who serve as mentors.

All of this is by design. CAST Tech, which opened in fall 2017 with 175 freshmen, is the first of three career-themed public high schools currently planned for San Antonio. The schools are the brainchild of Charles Butt, a big donor to local education causes and chairman of H-E-B, the region’s largest grocery store chain. After having trouble finding skilled employees for his corporate headquarters, Butt brought together San Antonio school superintendents, business leaders and workforce experts to explore school models that could give students the academic foundation and skills required for jobs in fast-growing, well-paying local industries. Their answer was CAST (which stands for Centers for Applied Science and Technology). The schools are intended to prepare students from across the San Antonio metro area for careers in tech and business, health care and advanced manufacturing. They rely on industry “partners” — 10 so far at CAST Tech — to guarantee students internships and mentorships and to help keep the curriculum current. Students take a mix of core academics and classes such as entrepreneurship and graphic design; in addition, they can earn up to 30 college credits through dual enrollment programs with local colleges.

Modeled in part on California’s High Tech High charter network, business-backed programs in Georgia and South Carolina and STEM programs in Massachusetts, the school are part of a growing push to more closely match the skills students gather in high school with workforce needs. While some educators worry about turning schools into vehicles for job readiness, efforts to integrate technical training and academic education continue to gain traction. A recent White House proposal to merge the education and labor departments into a new Cabinet-level agency, the Department of Education and the Workforce, underscores the popularity of this view in Washington.

In San Antonio, the CAST schools are also one prong of a larger effort by a local school district to promote integration in one of the most economically segregated cities in the country. The San Antonio Independent School District, which will operate two of the CAST schools, is one of 19 school districts in the county and among its poorest. Mohammed Choudhury, who joined the district last year as its chief innovation officer, wants to ensure that these and other specialized schools in his district avoid some of the common pitfalls of school choice.

“Usually when districts launch specialized initiatives around school choice, and resources are put into the school in an urban environment, they end up exacerbating segregation that already exists,” he said. But while CAST Tech encourages applications from across the metro area, it eschews the admissions exams used by magnet schools, and, unlike most charters, is run by the school district. Plus, Choudhury solicits applications from the city’s poorest pockets, and carefully tinkers with the mix of students from low- and middle-income families.

For more of the story, click the provided link...

America is now the world’s largest oil producer

July 24 - October 31, 2013

Move over Russia and Saudi Arabia. America has reclaimed its throne atop the oil world.

For the first time since 1973, the United States is the world's largest producer of crude oil, according to preliminary estimates published on Wednesday by the Energy Department. The feat demonstrates how the US shale oil boom has reshaped the global energy landscape. American oil output has more than doubled over the past decade.

"It's an historic milestone and a reminder: Never bet against the US oil industry," said Bob McNally, president of Rapidan Energy Group, a consulting firm.

Texas is the epicenter of the shale boom. Production in the Permian Basin of West Texas has grown so much that in February the United States vaulted above Saudi Arabia for the first time in more than two decades, according to the US Energy Information Administration.

US output kept climbing in June and August, reaching nearly 11 million barrels per day. That nudged the United States ahead of Russia for the first time since February 1999, the EIA estimates.

The United States isn't expected to cede its crown any time soon. The EIA expects US oil production to stay ahead of Russia and Saudi Arabia through 2019.

To read more, click on the provided link in the right column.

Offshore Texas Oil Export Facility Proposed

July 24 - October 31, 2013

Oil-gas Optimism Reigns, Study Finds

July 24 - October 31, 2013

Offshore Engineer reports  February 18, 2019

From https://goo.gl/mgegau

Educating for the Future — HCC’s Manufacturing Center of Excellence

July 24 - October 31, 2013

Oil Prices Up On Trade Optimism

July 24 - October 31, 2013

[caption id="attachment_963" align="aligncenter" width="300"] Oilprice.com[/caption]

Oil prices are set to end the week up for the second week running, with both trade sentiment and production cuts adding bullishness to oil markets.

Friday, February 22, 2019

Oil is set to close out another week of gains, this time juiced by optimism over the U.S.-China trade negotiations. But the gains are also coming because OPEC+ is taking supply off of the market. “Saudi Arabia is delivering on the cuts it pledged, and I have no doubt they’ll deliver on pledges to do more,” said Bjarne Schieldrop, Oslo-based chief commodities analyst at SEB AB. “It was a production boost from OPEC and an equity sell-off that pushed oil down during the fourth quarter, and now as both of those elements are in reverse prices are going up.”

Don’t Mess with the Tax Write-Off for New Equipment

July 24 - October 31, 2013

Industry Week 

https://goo.gl/5YZKNz

Preventive Maintenance Program Available

July 24 - October 31, 2013

Your local Haas Factory Outlet now has 3 options to choose from:

Basic Inspection for a general overview
Level 2 PM more detailed inspection
Level 3 PM in depth inspection and oil/filter replacement

Schedule your preventive maintenance today so your machine will be up and running when you most need it!

PreventiveMaintenanceBrochureRev86

Lonestar Resources Enters Eagle Ford JV

July 24 - October 31, 2013

Wood to Design Chevron’s Anchor Offshore Platform

July 24 - October 31, 2013

http://bit.ly/2TgAF84

Engineering company Wood has secured a multimillion-dollar engineering design project for Chevron’s Anchor deepwater development in the Gulf of Mexico.

The scope of the project included the preliminary, front end engineering and design (Pre-FEED), FEED and now entails the detailed design of Anchor, a wet tree development that will employ a semi-submersible floating production unit (semi-FPU). 

"This marks the industry’s first deepwater high-pressure development to achieve a final investment decision," Wood said Thursday.

The project will be led by Wood’s engineering teams in Houston, Texas, with the contract awarded under an existing 10-year master services agreement (MSA) with Chevron.

"Under the scope of work, Wood is delivering a unique, fully integrated design for the topsides and subsea system, incorporating risers, production flowlines, export pipelines, and flow assurance analysis," Wood said.

The Anchor discovery is in Block 807 of the Green Canyon Protraction Area, located approximately 225 km off the coast of Louisiana in more than 1,500 m of water. With an operating pressure of 20,000 psi, it’s one of the first ultrahigh-pressure projects in the world. 

The semi-FPU will have a production capacity of 75,000 b/d of oil and 28 MMcf/d of gas, with the potential for future expansion.

Oil Output Cuts Could Boost Price to $60 a Barrel, Lukoil Says

July 24 - October 31, 2013

OPEC's proposal to cut oil production by up to 1 million barrels a day would be enough to balance the oil market and lift prices to $60 a barrel, Leonid Fedun, vice-president of Russian oil producer Lukoil, told Reuters. 

The comments from Fedun, who was talking on the sidelines of the company's presentation of its low-carbon energy strategy, suggest Russia may be willing to agree to OPEC's proposals for more output cuts in light of the coronavirus outbreak. 

The Organization of the Petroleum Exporting Countries and its partners, a group known as OPEC+, will meet in Vienna on March 5-6 to discuss additional steps to support the oil market as the spread of the coronavirus risks hurting demand. 

OPEC initially called for a cut of 600,000 barrels per day (bpd) to prop up prices, in addition to existing cuts of 1.7 million bpd which are expected to be extended when [they] expire at the end of this month. 

It has since proposed deeper cuts of 1 million bpd though Russia has yet to agree to any new cuts. "Conoravirus ... is a short-lived factor which is affecting oil prices ... There will be an OPEC (and non-OPEC) meeting, compensatory measures will be taken which will take the excess oil off the market and the oil price will rebound," Fedun said.

"In my view, (a joint) cut of between 600,000 bpd to 1 million bpd is enough to balance the market hit by 'black swans' such as coronavirus. This is enough for oil to rebound to $60 per barrel," he told Reuters. 

Russia is the world's second-biggest oil exporter after Saudi Arabia. Lukoil is also Russia's second-biggest oil producer, pumping nearly 1.8 million bpd, which is on a par with OPEC member Nigeria. 

Most of its oil comes from Russia but it also has operations in a number of ex-Soviet countries, as well as in Iraq, Africa and some other places. Brent crude futures have slumped from January's peak of $71.75 to a low for 2020 of $48.40 on Monday on concerns the virus outbreak will hit global demand for oil. 

MIDDLE EAST TIES

Partnership with OPEC is essential for Russia's budget and for its ties with Middle East leaders because Moscow plays an important role in a number of conflicts in the region. Russian President Vladimir Putin met oil companies, including Lukoil, on Sunday. He indicated that he favored joint action with OPEC but stressed that the current oil price level was acceptable to Moscow, signaling that Russia's contribution to further output cuts may be limited. 

Fedun, who is also Lukoil's second-biggest shareholder, told reporters on Monday that he expected Russia to cut its oil output by about 200,000-300,000 bpd. "We are ready to cut (our oil production) as much as we are told to. Better to sell less oil but at a higher price," Fedun said. 

He also said on Monday that OPEC+ could cut output by even more than 1 million bpd but his comments to Reuters suggest he believes the existing proposals should suffice. 

While playing down any long-term risks to global markets from the coronavirus outbreak, Fedun said it was a carbon emissions reduction agenda that was set to drastically change the global oil industry, including Lukoil. Major western oil firms have all set carbon reduction goals of varying degrees, including reaching a net zero-carbon level by 2050. 

"Lukoil is starting to develop its own climate strategy - we will be aiming to reach carbon neutrality by 2050 along with the rest of Europe," Fedun said, adding that his firm was looking to expand further into solar and wind energy along with hydropower. Fedun also reiterated that Lukoil aims to allocate all free cash flow to dividends, while also taking spending on share buyback programs into consideration. 

(Reporting by Vladimir Soldatkin; Additional reporting by Olesya Astakhova; Writing by Katya Golubkova; Editing by Louise Heavens, Susan Fenton and David Clarke)

OE DIGITAL Article Link

Phillips Haas Maintenance & Repair Training – What is it?

July 24 - October 31, 2013

SERVICE YOUR HAAS MACHINES LIKE A PRO! Take control of your downtime and lower repair costs by learning to fix your CNCs on your own. Interested?

Please complete our inquiry form on our site and a Phillips representative will be in touch to answer any questions. https://www.phillipscorp.com/phillips...

“I wouldn’t keep sending so many of my service techs if I didn’t think it was a great investment.” Michael Goode, GE

“The class immediately paid for itself after one repair.” Jeff Smith, Roush Yates

COURSE DESCRIPTION

Learn a systems approach to efficient troubleshooting and repair of Haas CNC equipment from classic controls to Next Gen. Understand mechanical systems, electrical systems, and various assemblies. Practice and refine skills used in common repairs. Topics include Machine Specifications & diagnostics, vector drive troubleshooting, axis motor replacement, tool changer & release pistons, spindle & belt replacements. Students are required to pass a hands-on assessment at the end of the course. Successful trainees get a certificate of completion and a free service key that unlocks parameters on any Next Gen control Haas.

Preventive Maintenance Program

July 24 - October 31, 2013

Your local Haas Factory Outlet now has 4 options from which to choose!
•Level 1 PM Inspection- General overview
•Level 2 PM Inspection- More detailed inspection
•Level 3 PM Inspection- Comprehensive inspection
•Level 4 PM Inspection- Comprehensive inspection with oil/filter replacement, vibration analyzer and ball bar plots.

Click here to view the full brochure with details of each level of PM.