North Dakota, Alaska lead rig count growth as Texas dips
Jordan Blum, Houston Chronicle, October 26, 2018
Both North Dakota and Alaska tacked on multiple drilling rigs last week to account for a small hike in the nation’s rig count. The number of active drilling rigs nationwide only grew by one overall, but the increases in Alaska and North Dakota helped offset declines in Texas and Louisiana. Texas lost three active rigs last week, but that comes one week after Texas gained eight rigs, according to weekly data collected by Baker Hughes, a GE company. There are now 1,068 active rigs across the country with more than half of them operating in Texas.
Our Take: It’s been a long time since Alaska has added to the rig count. Feels GREAT!
Trump’s sanctions on Iran tested by oil-thirsty China, India
Timothy Gardner, Humeyra Pamuk, Henning Gloystein, Reuters, October 28, 2018
Shortly after U.S. President Donald Trump announced in May he would reimpose sanctions on Iran, the State Department began telling countries around the world the clock was ticking for them to cut oil purchases from the Islamic Republic to zero. The strategy is meant to cripple Iran’s oil-dependent economy and force Tehran to quash not only its nuclear ambitions, but this time, its ballistic missile program and its influence in Syria. With just days to go before renewed sanctions take effect Nov. 5, the reality is setting in: three of Iran’s top five customers – India, China, and Turkey – are resisting Washington’s call to end purchases outright, arguing there are not sufficient supplies worldwide to replace them, according to sources familiar with the matter.
The first quarter of LNG Limited’s fiscal year was dominated by our focused efforts to sign long-term contracts for Magnolia LNG. While trade issues with the Chinese market impact our discussions, our negotiations with customers in other parts of the world remain strong. Earlier this year, we stated our target to make a final investment decision by the end of the 2018 calendar year. We made that statement prior to the trade tensions that have manifested over the past months, which have caused headwinds for LNG transactions. We remain hopeful in our ability to bring a final investment decision for Magnolia LNG to the Board of Directors in the first part of 2019. There are varying opinions on how and when the trade issues with China will be resolved. Considering that, our communications with potential Chinese off takers remain robust with the intent to complete agreements if trade tensions abate before Magnolia is fully sold out.