Texas Energy News Recap

Getty Images

Getty Images

There was a lot of talk last week, some good and some bad, about how Texas energy is engaging with both Mexico and Iran. Another highly discussed topic was how deepwater was not getting a great reception from some major energy entities and how the Eagle Ford shale was not shaping up to anticipated levels. In this article, we will discuss what you can expect to be discussed during this week regarding Texas energy.

Related: Mexico changes energy reform policy; US drillers cleared to bid

Houston-based Genesis Energy LP (NYSE: GEL) has struck a deal with Enterprise Products Partners LP (NYSE: EPD) to the tune of $1.5 billion in cash that will set in motion it’s acquisition of the company. The deal, which is set to close in the third quarter of its fiscal year, will give Genesis ownership interest of Enterprise’s Gulf of Mexico assets, which include the following:

1.    Nine natural gas pipeline systems
2.    Six offshore platforms
3.    Nine crude oil pipeline systems

It seems that Mexico is getting in its own way when it comes to energy reforms. The country’s offerings were not successful in attracting energy key players to the 14 oil and natural gas exploration sites that were being presented in the Bay of Campeche. In fact, only Sierra Oil & Gas along with Talos Energy LLC and Premier Oil PLC were the only consortium to win a bid.


Nominate someone today!

Nominate someone today!


The Middle East won in a big way after a two-year negotiation finally reached a historic turning point. An agreement was announced that would allow the United States to possibly lift economic sanctions on Iran. This plan was forged in order to keep the Iranian government and its military forces from having the capability of building any type of nuclear weapon. This monumental announcement caused a frenzy concerning how it would impact the market of Iranian oil. Analysts from Bloomberg have already gone on record stating that in the fourth quarter the price of oil could increase to $62. Who might be the big winners from this announcement? Experts from Chilton Capital Management stated that Halliburton (NYSE: HAL) and Schlumberger Ltd (NYSE: SLB) stand to bring in big profits from the deal.

Related: Oil slips in anticipation of Iran deal; IEA data pressures

There are still others that were affected from the announcement regarding the Iranian oil market. In fact, the nuclear deal that was struck with the Middle East negatively affected West Texas Intermediate crude oil prices almost immediately. Prices stammered to slightly above $50 at the beginning of this week. These prices caused the Eagle Ford Shale rigs to fall below the 100 mark. This is a five-year low for these Texas drilling rigs.

In other deepwater news from the Gulf of Mexico, ConocoPhilips (NYSE: COP) publicly announced its intention to reduce spending on its deepwater exploration prospects. The Houston energy company did not give specific numbers regarding the amount of spending that would be reduced at this time. In addition to the cut in spending the company also announced that it intends to terminate its contract with Ensco PLC (NYSE: ESV) who they were collaborating with on their DS-9 drilling ship.

Contributors: Luis Cruz & Shon Mattox


FeaturedInsidersWebLarge

Be the first to comment on "Texas Energy News Recap"

Leave a comment

Your email address will not be published.


*