oil

StateImpact Oklahoma
1:11 pm
Thu March 26, 2015

Oklahoma Running Out of Room for Oil as U.S. Hoards Crude in Cushing Hub

A tanker truck pulling into a terminal at the oil hub in Cushing, Okla.
Joe Wertz / StateImpact Oklahoma

A booming U.S. oil industry has led to near-record amounts of oil production, which has helped drive down oil prices. The energy industry has responded by storing crude instead of selling it at discount rates. That has created a unique situation in Oklahoma, where a major oil storage hub is on track to fill up — completely.

One-fifth of the country’s commercial crude oil storage capacity is located Cushing, Okla., a small city of about 7,900 in northeastern Oklahoma. On the city’s outskirts, field after field are filled with hulking steel storage tanks.

Pumps, compressors and valves hum and shudder. Tanker trucks pull off the busy road and line up at terminals. Sci-fi chirps echo as welders and workers drag cables inside tanks they’re rushing to build. Cushing has room for 71 million barrels of oil, but it’s not enough.

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Business
2:11 pm
Fri March 20, 2015

Some Anxiety, But No Slowdown For North Dakota Oil Boom Town

A production site in the Bakken oil patch as seen from inside an abandoned farmhouse just outside Watford City, N.D.
David Gilkey NPR

Originally published on Fri March 20, 2015 7:58 pm

Low oil prices are causing a drop in new drilling and exploration in North Dakota, but not as much as you might expect.

Take the boom town of Watford City, over in the northwestern corner of the state and in the heart of the Bakken oil patch. Its population has tripled since 2010, and today, continues to climb.

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Parallels
3:23 pm
Mon March 16, 2015

Excitement Over Mexico's Shale Fizzles As Reality Sets In

A platform owned by Mexico's state-run oil company Pemex is seen off the Bay of Campeche in the Gulf of Mexico. The country has recently opened up its energy sector to foreign investors.
Victor Ruiz Reuters/Landov

Originally published on Mon March 16, 2015 8:01 pm

The prolific shale formation that has made people rich in South Texas doesn't stop at the Rio Grande, as U.S. maps seem to indicate.

"The geology doesn't change when you cross that little 20-foot-deep river," says Brandon Seale, president of San Antonio-based Howard Energy Mexico. "What goes on 10,000 feet under the river is the exact same."

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Business
4:16 am
Tue March 10, 2015

Low Oil Prices Could Stall Explosive Growth In Montana Boom Town

A pump-jack sits atop an oil well near downtown Sidney, Mont. The oil boom has brought thousands of new residents to the town, almost all of whom work in the Bakken oil fields in Montana and North Dakota. Sidney sits at the western edge of the Bakken oil patch, one of the most productive drilling areas in the country.
David Gilkey NPR

Originally published on Tue March 10, 2015 4:52 pm

What happens when the price of oil tanks and suddenly you're faced with a whole lot less money to deal with your town's explosive growth?

If you're 52-year-old Rick Norby, you lose a lot of sleep.

"I haven't slept since I became mayor," he says. "I really ain't kidding you."

When Norby became mayor of Sidney, Mont., oil prices were about $100 a barrel. A year later, they've fallen to roughly half that. Yet oil production has continued to churn right along.

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Economy
3:39 am
Tue March 3, 2015

In Houston, Falling Oil Prices Spark Fears Of Job Cuts Beyond Energy

Originally published on Tue March 3, 2015 12:19 pm

In recent weeks, the price of gasoline has ticked up but regular unleaded still costs about a dollar less than it did a year ago. That's good for consumers, who have more money to spend. But in Houston, one way or another, the paychecks consumers depend on come from the oil business.

The world's three biggest oilfield service firms — Schlumberger, Halliburton and Baker Hughes — have announced a combined 22,000 layoffs in recent months. Those job cuts are worldwide, but many are falling in Houston, where all three companies have headquarters.

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Business
3:50 am
Tue February 24, 2015

Analysts Fear A Prolonged Drop In Oil Prices Will Hurt Oklahoma's Banks

Drilling rigs dot the landscape near Calumet, Okla., in April 2013. Oklahoma's economy blossomed during the domestic fracking boom, but as the price of crude oil drops, that could change.
Sue Ogrocki AP

Originally published on Tue February 24, 2015 2:39 pm

In Oklahoma, a state that largely rode out the recession on a gusher of new-found oil, things may be about to change.

Now it costs more to produce most of Oklahoma's oil than it's worth on the world market. That's triggering a sharp economic reversal, one that some say has the makings of a prolonged downturn.

"Over the last five years, the stars really aligned," says Roy Williams, president of the Greater Oklahoma City Chamber of Commerce. "The community's investment in itself just blossomed, the energy industry blossomed."

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StateImpact Oklahoma
6:15 am
Thu February 19, 2015

As Cities Consider Tougher Drilling Rules, Oklahoma Lawmakers Eye Limits on ‘Local Control’

Protestors outside a public meeting in Oklahoma City about an oil company's proposal to drill near Lake Hefner held signs and chanted "Stop fracking now" and "No more drilling."
Joe Wertz / StateImpact Oklahoma

When New York Gov. Andrew Cuomo announced a statewide ban on fracking in 2014, Oklahoma Rep. Casey Murdock took notice. After voters in the city of Denton, Texas — just 40 miles south of the Oklahoma state line — approved a fracking ban in the Nov. 4 election, the Republican representative from Felt took action.

“There is your anti-oil group,” the freshman lawmaker says. “We have activists outside the state that have come in and they’re pushing in these college cities.”

Murdock’s measure, House Bill 1395, is one of at least eight “local control” bills under consideration by the 2015 Legislature. The bills differ in the details, but they all limit, in some way, the power municipalities have to regulate oil and gas drilling or related activities, like fracking.

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Economy
3:34 am
Mon February 9, 2015

Oil Price Dip, Global Slowdown Create Crosscurrents For U.S.

Oil pumpjacks are seen in McKenzie County in western North Dakota. Cuts in production and energy company payrolls will cost the U.S. economy up to $150 billion, economist David Kotok of Cumberland Advisors projects.
Matthew Brown AP

Originally published on Mon February 9, 2015 8:48 am

Continued job growth has boosted prospects for the U.S. economy, but it continues to face some tricky crosswinds. The big drop in oil prices and a stronger dollar both help the economy and hurt it. Add to that the recent slowdown in global growth.

Lots of economists have suggested the big drop in oil prices is a gift to consumers that will propel the economy. David Kotok of Cumberland Advisors is one of them. He argues that cheaper oil will ultimately be a positive.

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Business
5:48 pm
Thu February 5, 2015

Planning Through Oil Booms Helps Small Producers Weather The Busts

Tracy Perryman is production manager for his family's small oil company in Luling, Texas. B.J.P. Inc. owns 116 wells that, combined, produce about 100 barrels a day.
John Burnett NPR

Originally published on Fri February 6, 2015 10:55 am

Hard times have hit the oil fields. A barrel of West Texas Intermediate crude has dropped from a high of over $100 to less than $50. But Tracy Perryman, a small oilman in Luling, Texas, has learned how to survive the lean times.

Oil companies that take on a lot of debt sometimes don't survive the downturns. But veterans of oil busts have learned how to plan for the inevitable price plunges.

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US News
6:28 pm
Tue February 3, 2015

Looking For Even Cheaper Gas? Go Generic At An Indie Station

Traffic moves along Route 21 in downtown Newark, N.J., where a gas station lists the price for regular unleaded gasoline at $1.72.
Julio Cortez AP

Originally published on Tue February 10, 2015 2:44 pm

By now, the surprise of cheap gas has probably worn off.

But drivers on the hunt for the very best prices have noticed a new trend: Small, independent gas stations are often the first to cut prices when the price of crude oil falls. This has a lot to do with how gas is bought, sold and moved from pipeline to pump.

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