Yes! Yet another Morning Surge is coming your way. Today we’re serving up a lot of updates on developing stories that we’ve been covering for the past few weeks. OPEC cuts, India’s national oil company, and Boulder County’s moratorium on oil and gas drilling all have new chapters to add to their story.
Let’s see what’s happening!
India’s ONGC Set To Take Over HPCL To Become Energy Giant
In recent weeks India’s plans to create their very own state-run oil and gas company has been well-documented. The company, now called Oil and Natural Gas Corporation, is about to take control of Hindustan Petroleum Corporation as part of this plan.
Their desire is to rival top oil companies like Shell and Exxon-Mobil.
“It is a very big decision. A Cabinet note will soon be moved. The government of India will transfer its majority shareholding (of 51.11% in HPCL) to ONGC, which will then become the holding company of HPCL,” said one of the government officials.
Economic Times reports that this vertical integration will boost the exploration business, and when prices drop, the distribution segment will conversely benefit.
Oil and Gas Organizations Join Colorado’s Lawsuit Against Boulder County
The legal battle between Boulder County and Colorado’s Attorney General Cynthia Coffman over their moratorium on oil and gas development has also been a hot topic in the industry.
The Colorado Oil and Gas Association along with the American Petroleum Institute have now been granted joint motion to intervene in challenging the legality of this moratorium.
Times-Call reports these two organizations filed a complaint, saying they have “members who own mineral leasehold interests within Boulder County. These members seek to be engaged in the exploration, production, and development of oil and natural gas in Boulder County.”
“These members have been prevented from developing their mineral leasehold interests in Boulder County by the continuous moratorium,” the complaint continued.
Boulder County commissioners were not surprised that industry organizations got involved.
Oil Closes At $54 a Barrel as US Supplies Continue To Climb
OPEC has purposely cut production for the past few weeks, but a drastic increase in U.S. production is starting to overshadow that. Rigzone reports that OPEC is working diligently to make sure production cuts are met, achieving more than 90 percent compliance with the group and the eleven other countries in the deal.
However, U.S. production is starting to worry those watching the industry. Some think OPEC’s efforts won’t make much of a difference.
“The market has a lot of length, which is due to exuberance regarding OPEC,” director of research with IAF Advisors in Houston, Kyle Cooper, said.
“It remains to be seen if the cuts will have an impact on inventories.”
Here’s to hoping we sort this all out around the world.
That’s it for me today, but I’ll be back tomorrow, I promise! To tide you over, Doug Krintzman is coming your way with another edition of The Nightly later today. Any developing oil and gas headlines that break throughout the day will be there. See you tomorrow!