-The Obama Administration today granted Shell permission to resume oil exploration off Alaska’s Arctic coast. Via Bloomberg, the Interior Department approved Shell’s plan to drill up to six wells in the Chukchi Sea with two rigs. Shell drilled two test wells in 2012, but halted the work after its drilling rig ran aground. The government set 18 conditions for its approval, including a requirement that Shell obtain all other needed permits to drill and protections for endangered species.
-ExxonMobil began producing bitumen at its $2 billion Cold Lake Nabiye project expansion in northeastern Alberta. The expansion is producing 20,000 barrels per day, with an increase to 40,000 barrels expected this year. ExxonMobil said Nabiye would access 280 million barrels of recoverable resources over its 30-year life span.
-M&A activity in the oil and gas sector fell in the first quarter of this year amid low oil prices, according to a report by PricewaterhouseCoopers (PwC). Total deal activity in the upstream segment dropped 60% and deal volume decreased by 71%. PwC’s Doug Meier said companies have shifted their focus to cost reduction and productivity enhancement and away from M&As. Meier said low oil prices could, however, present opportunities for potential acquirers with strong balance sheets.
-Meanwhile, the Energy Information Administration predicts oil production from the major U.S. shale plays will fall by 86,000 barrels per day between May and June. Natural gas production from those areas is expected to decrease by 112 million cubic feet per day.
-Cameron International Chairman and CEO Jack Moore will retire in October while continuing in his role as chairman. Cameron said President and COO R. Scott Rowe will succeed Moore as CEO. Rowe joined Cameron in 2002 and served as CEO of OneSubsea before being promoted to his current position last September.
