In case you missed them, here are the top five stories from Bakken.com for the week of August 29th through September 4th. Enjoy!
5. Nearly half of hotel rooms in North Dakota oil capital sit empty
WILLISTON, N.D. – Nearly half of the hotel rooms in the epicenter of North Dakota’s energy boom have been sitting empty this year, yet another sign that plunging oil prices have cooled the economy of the second-largest crude producing U.S. state.
Producers, oilfield service providers and other energy companies across the state’s western oil patch have cut employee hours, canceled projects and laid off staff, all hoping to weather the low-price storm.
When prices started to slide last fall, producers in North Dakota kept up production levels hoping for a rebound. But since January, that has changed as oil prices kept falling. To read the full article, click here.
4. OPEC magazine op-ed that fueled oil rally baffles insiders
LONDON – An OPEC publication written by the exporter group’s public relations team helped oil prices jump and prompted speculation over a possible shift in output policy – to the bafflement of some OPEC insiders.
The commentary on Monday in the OPEC Bulletin, a magazine issued by OPEC’s Vienna headquarters, said downward pressure on prices due to higher production “remains a cause for concern” and OPEC “stands ready to talk to all other producers”.
While the 799-word article helped add another 8 percent to oil’s three-day surge, by Tuesday it seemed clear there was no sign of a significant shift in OPEC policy or any indication of a fresh push to shore up markets, analysts and OPEC insiders said. To read the full article, click here.
3. You think the stock market is crazy? Look at oil prices
NEW YORK — Commodity markets are renowned for their booms and busts but the last four days in the crude oil market have even experienced traders wide-eyed.
The price of oil plunged 8 percent on Tuesday, following a three-day ascent of 27 percent, the biggest such jump in 25 years.
“It’s wild!” said Phil Flynn, energy analyst at the Price Futures Group. “Buckle up.” To read the full article, click here.
2. OPEC is producing at a loss, Ecuador admits
Member nations with the Organization of Petroleum Exporting Countries (OPEC) are feeling the financial stress created by low oil prices and many, such as Equador, are now pumping oil at a loss.
As reported by FuelFix, earlier this week Ecuador President Rafael Correa said that while production costs average about $39 per barrel, the country is fetching as little as $30 per barrel for its crude. The statement, which some might heed as a warning, comes after several OPEC members, including Algeria and Libya, called for an emergency meeting to address the drop in oil prices. In a speech, Correa said, “We are going through a very difficult year economically because the price of oil collapsed.” To read the full article, click here.
1. ND oil well blowout spews more than 23,000 gallons of crude
BISMARCK, N.D. — The state Health Department says a well blowout spewed more than 23,000 gallons of oil and 4,600 gallons of briny wastewater in Dunn County.
Environmental scientist Bill Suess says the blowout occurred Saturday morning at a well owned by XTO Energy Inc., about 18 miles southeast of Watford City. Suess says the company reported the spill to health officials on Sunday. To read the full article, click here.