Here’s what you need to know this week in oil and gas:
Total CEO: OPEC needs to extend cuts
Total SA Chief Executive Officer Patrick Pouyanne said OPEC and Russia would need to extend the output cuts if they want to eliminate the global oil glut.
“If they want really to have an impact on the market, which means to have the inventories going down because inventories are quite high, it will have to be extended beyond May,” Pouyanne said Tuesday in a Bloomberg television interview. “I’m convinced that they will do it.”
OPEC implemented about 90 percent of the agreed cuts last month. Goldman Sachs Group Inc. is predicting that the market will shift into supply deficit in the first half.
Fight over pipeline could start in Louisiana
Opposition is growing over a planned extension of the Bayou Bridge pipeline in Louisiana.
Energy Transfer Partners, the same company behind the Dakota Access Pipeline, is planning to extend the pipeline across Southern Louisiana for about 160 miles between Lake Charles and St. James.
Those against the extension are worried the pipeline construction would pollute drinking water and constrict drainage systems during heavy rains. Pipeline supporters, however, say that more infrastructures are needed for the oil and gas industry to provide affordable energy.
ETP said in a statement that it would work with landowners and communities to “build the pipeline in the safest, most environmentally friendly manner possible.”
70 percent of oil, gas companies have been hacked
A new survey from Siemens with the Ponemon Institute revealed that nearly 70 percent of oil and gas organizations were hacked in 2016.
Only 1/3 of participants in the survey said that operational technology and information technology networks were “fully aligned” for cybersecurity. Of attacks, nearly half of them were not detected.
“Oil and gas companies are benefitting from digitalization, but it has significantly increased cyber risks,” the Siemens document says.
Nearly 400 people in the downstream, upstream or midstream sectors of the oil and gas industries were surveyed for the study.
NAPE summit draws more competition, more positivity
Deal makers at NAPE, the nation’s largest conference for buying and selling oil and gas land, saw more competition for land and rights at the annual Houston conference.
Clay Gordon, director of business development for Denver-based Strata Resources, said this year he could have three or four bidders on any given deal. Last year, the company was lucky to nab one.
This year, more companies were looking to lease 3D seismic data, which is used for exploration.
Said Al Porretto, a geologist and consultant from New Orleans:
“It looks like the money is starting to come back into the industry.”
Dakota Access Pipeline sells $2 billion in stakes
Energy Transfer Partners sold $2 billion in stakes in the Dakota Access Pipeline.
The pipeline restarted construction this week after receiving approval from the U.S. Army Corps. of Engineers.
Energy Transfer sold a 36.8 percent stake in the $4 billion pipeline project to affiliates of Enbridge and Marathon Petroleum. Energy Transfer now controls 38.25 percent, and Phillips 66 has a 25 percent stake.