According to Baker Hughes, the U.S. rig count has increased by 10 this week, with Texas gaining four of the total overall increase. The price of oil is inching back up , playing games with that $50 per barrel mark. Oil currently sits at $48.99, and Brent crude is $50.35. The anxiety associated with the British vote to leave the European Union appears to be short-lived, and things on Wall Street seem to have stabilized for the time being.
Not only has the price of oil been a cause for concern in recent months, but overproduction is a factor in the equation. However, this week U.S. Secretary of Energy Ernest Moniz said demand for oil is catching up to the two-year supply glut that has plagued the oil industry. Even the Saudi oil minister Khalid al-Falih told the Houston Chronicle in his first interview since he took the position the oversupply of oil was coming to an end, agreeing with Moniz’s assumptions that the oil markets would come into better balance over the next year. Which means that oil prices should continue to slowly rise. OilPrice.com’s Matt Smith also pointed to data showing that production seems to have tapered in Saudi Arabia, noting that waterborne exports from the south of the country fell below 3 million barrels per day for the first time in several months.
Here are 5 more stories that Texas readers found most engaging this week. Enjoy a safe and happy Fourth of July!
5. TransCanada, the company that proposed the Keystone XL pipeline, isn’t going to fade into our memories just because the Obama administration rejected the project. In fact, it might cost the U.S. $15 billion.
4. While not technically energy related, EMG’s editorial staff found this story intriguing. The tie-in is the technology used in analysis of the tunnel, scanning technology called electrical resistivity tomography, which you might know well, since it’s used in oil exploration. Texas readers found this story particularly intriguing.
3. Everyone knows that when you go to California, gas prices are the highest in the nation. But why? California attorney general Kamala Harris, who wants to know, too. Harris issued subpoenas to refiners like Chevron Corp., Exxon Mobil Corp., Valero Energy Corp. and Tesoro Corp. We’ll have to watch this story to see if there’s really good reason. Our Facebook readers were particularly engaged in this topic. Unfortunately, lots of those comments were very heated, and we had to hide them from our audience, but the gist of the conversation showed that California’s high gasoline price is an issue beyond California borders.
2. Jobs in the industry are always a hot topic. This story, from the June 29 quarterly report released by the Dallas Fed, addresses shale jobs in the state.
- The most read story this week by our Texas readers, including EagleFordTexas.com, PermianShale.com, and Haynesville.com, was controversial and shocking. While it was posted last week, the story gained traction as more information about Chris Faulkner was revealed. A story we shared on Facebook on the same topic generated over thousands views and shares. The story included here is the updated version, with more details than the original post last week.