Petroleum and Questtec Solutions

Questtec Solutions provides engineered solutions for the petroleum industry as well as many industries around the world. In this blog series, we share recent headlines from industry news and real examples of our products ‘in action.’

Petroleum News

Ohio’s shale energy industry attracts nearly $78 billion in investment since 2011

Source: World Oil

COLUMBUS, OHIO – Total investment in Ohio’s resource rich shale energy sector has reached $78 billion since tracking began in 2011, according to a Cleveland State University (CSU) study.

Upstream activities, such as drilling or royalties, accounted for more than $3.5 billion of this total. Data indicates that the volume of gas-equivalent shale production in the second half of 2018 was 17.7% higher than in the first half, with total upstream spending in the second half of 2018 exceeding that for the first half by around $173.4 million.

Canadian heavy crude weakens as rail strike halts shipments

Source: World Oil

CALGARY (Bloomberg) – The price of Canadian heavy crude weakened Tuesday as a worker strike at the nation’s largest railway curbed oil shipments, exacerbating a supply glut that’s crippled Canada’s oil industry.

Western Canadian Select crude’s discount to West Texas Intermediate futures widened $2.90 to $18.90 a barrel, the weakest level in a week, data compiled by Bloomberg show.

The strike comes at a difficult time for crude producers, who were set to boost rail shipments of oil after Alberta’s government eased production limits for companies shipping by train. It also coincides with crop harvests, heightening competition for rail space among numerous commodity producers.

“The issue becomes prominent very quickly in terms of oil backing up into storage.”
Mike Walls, analyst at Genscape Inc.

About 3,200 workers at the company walked off the job Tuesday after failing to reach an agreement with the company over issues including working conditions and drug benefits, the Teamsters Canada Rail Conference union said.

Petrofac enters Permian shale market with W&W Energy acquisition

Source: World Oil

LONDON – Petrofac Limited announces it has signed a Sale and Purchase Agreement with the shareholders of W&W Energy Services to acquire an entry-level position in the US onshore Operations and Maintenance market.

W&W offers Maintenance, Repair & Overhaul and Pipeline tie-in services in the Permian basin, the world’s largest producing basin. This bolt-on acquisition is in line with Petrofac’s stated strategy to position Engineering & Production Services (EPS) for growth by diversifying into new markets and geographies.

John Pearson, COO, engineering and production services, said:

“This bolt-on provides a platform to grow EPS using a low-risk reimbursable services model in the US onshore services market. As production volumes, infrastructure support requirements and the activity of major operators rise in the Permian, we are confident that the combination of W&W’s footprint and strong local brand with Petrofac’s Engineering and Modifications capability and global track record can unlock growth.”