Alaska tax will stop ConocoPhillips work: Update 2

: Crude oil, Natural gas
20/10/29

Updates with Lower 48 production, full-year 2020 data.

ConocoPhillips warned it will indefinitely stop drilling on Alaska's North Slope if voters approve a new tax on production at the polls next week.

Passage of Ballot Initiative 1 would mean the independent producer would not resume normal production of its Alpine, Prudhoe and Kuparuk fields in 2021 "or beyond that," chief operating officer Matthew Fox said during a third quarter earnings call with analysts.

"We're getting down with a wire here, and we really feel we have to be clear with Alaska voters," Fox said.

Ballot Initiative 1, also called the North Slope Oil Production Tax Initiative, would tax fields with a lifetime output of at least 400mn barrels of crude and at least 40,000 b/d in the preceding calendar year. The oil sector has mobilized against the measure.

ConocoPhillips is the largest oil and gas producer in Alaska. Together, the three fields on the North Slope generated 218,000 b/d oil equivalent (boe/d) last year, or about 25pc of the company's worldwide crude production.

The company said it would adopt a cautious outlook for global oil demand in 2021.

"We're not going to rush headlong into trying to grow production," chief financial officer Bill Bullock said. "It doesn't make any sense to us. We'll see how things play out here over the next several months, and then we'll make adjustments."

Last week ConocoPhillips said it would purchase Concho Resources for nearly $10bn, a deal it hopes to close by the first quarter of 2021.

"As we all know, the year has been historically volatile for our industry," said chief executive Ryan Lance. "Now that we're back to more normal business, we're focused on continued strong execution of our programs and progressing our announced transaction with Concho Resources."

Fourth quarter production is expected to reach 1.13mn-1.17mn boe/d, leading to a full year average production of 1.12mn-1.13mn boe/d. Operating plan capital for 2020 is expected to be $4.3bn.

3Q results

Third quarter production excluding Libya was 1.07mn boe/d, but would have been 1.16mn boe/d if not for curtailments put in place in response to global crude demand drops earlier in the year amid the Covid-19 crisis.

Production in the Lower 48 states averaged 309,000 boe/d, including 167,000 boe/d from Texas' Eagle Ford shale, 75,000 boe/d from the Bakken and 67,000 boe/d from the Permian.

The company's total average realized price was $30.94 boe/d, about 34pc lower than the $47.07 boe/d it realized in the third quarter of 2019.

ConocoPhillips said it spent $1.1bn on capital expenditures and investments for the quarter and generated $870mn in cash from operating activities.

The company reported a $500mn loss for the quarter compared to a profit of $3.1bn during the same period in 2019.

By Thomas Lee

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25/04/23

India, Saudi Arabia to establish two Indian refineries

Mumbai, 23 April (Argus) — India and Saudi Arabia will collaborate on establishing two refineries and petrochemical projects in India, according to an Indian government release today. Indian prime minister Narendra Modi met Saudi prime minister Mohammed bin Salman in Jeddah on 22 April, as part of the India–Saudi Arabia Strategic Partnership Council. Saudi Arabia in 2019 had pledged to invest $100bn in India in multiple areas including energy, petrochemicals, infrastructure, technology, fintech, digital infrastructure, telecommunications, pharmaceuticals, manufacturing and health. The government did not disclose further details, but industry sources said that one of the two refineries might be Indian state-run BPCL's planned refinery in Andhra Pradesh , which Saudi Arabia's state-controlled Saudi Aramco may join as an investor. The other one might be a refinery in Gujarat, under a partnership with Indian upstream firm ONGC and Aramco. But plans for a 1.2mn b/d refinery in Ratnagiri in collaboration with IOC and Adnoc have mostly been ruled out, because of logistical issues relating to the size of the refinery and land acquisition hurdles, among others. Saudi Arabia is the third-largest crude supplier to India, making up 15pc or 712,000 b/d of India's total imports in January-March, data from oil analytics firm Vortexa show. Saudi Arabia's share in the Indian market has declined, after Russia became India's biggest supplier following its war with Ukraine. Modi's trip to the Middle East comes close on the heels of US vice president JD Vance's visit to India on 21 April. The visit included negotiations for an India-US bilateral trade agreement and efforts towards enhancing co-operation in energy, defence, strategic technologies and other areas. JD Vance in India Vance said on 22 April at his speech in Jaipur that India will benefit from US energy exports and said the US wants to help India explore its own considerable natural resources, including its offshore natural gas reserves and critical mineral supplies. US president Donald Trump has pushed India to step up its purchases of US crude and LNG. Crude imports from the US doubled on the month to 289,000 b/d in March, of which 65,000 b/d was Canadian Cold Lake crude, according to trade analytics firm Kpler. The visits come at a time when geopolitical and trade uncertainty has risen, because of Trump's volatile tariff policies. By Roshni Devi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Cyclone, outages cut Australia’s Woodside output in 1Q

25/04/23

Cyclone, outages cut Australia’s Woodside output in 1Q

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FERC commissioner Phillips resigns from agency

25/04/22

FERC commissioner Phillips resigns from agency

Washington, 22 April (Argus) — Democratic commissioner Willie Phillips has resigned from the US Federal Energy Regulatory Commission (FERC) after serving more than three years at an agency responsible for permitting natural gas infrastructure and regulating wholesale power markets. Phillips' departure will clear the way for President Donald Trump to nominate a replacement at FERC, who once confirmed by the US Senate would provide Republicans a 3-2 majority for the first time since 2021. Phillips, whose term was not set to expire until June 2026, had a reputation for negotiating bipartisan deals on contentious orders involving pipelines and power market issues in the two years he served as FERC's chairman under former president Joe Biden. Phillips has yet to release a statement explaining his abrupt resignation. But Trump has already fired Democratic commissioners and board members at other agencies that, like FERC, are structured as independent from the White House. Two of the fired Democrats, who were serving at the US Federal Trade Commission, have filed a lawsuit that argues their removal was unlawful under a 1935 decision by the US Supreme Court. The White House did not respond to a question on whether it had pressured Phillips to resign. FERC chairman Mark Christie, a Republican, offered praise for Phillips as a "dedicated and selfless public servant" who sought to "find common ground and get things done to serve the public interest". Christie for months has been downplaying the threats to FERC's independence caused by Trump's executive order that asserts sweeping control over FERC's agenda. Energy companies have come to depend on FERC in serving as independent arbiter in disputes over pipeline tariffs and electricity markets, without the consideration of political preferences of the White House. Former FERC chairman Neil Chatterjee, a Republican who served in Trump's first term, said in a social media post it was "disappointing" to see Phillips pushed out after he "played it straight" in his work at the agency. As chairman, Phillips was able to authorize a "massive LNG project" — the 28mn t/yr CP2 project — at a time when Biden had sought to pause LNG licensing, Chatterjee said. Separately, Paul Atkins was sworn in as the chairman of the US Securities and Exchange Commission (SEC) on 21 April, after the US Senate voted 52-44 earlier this month in favor of his confirmation. Atkins was previously the chief executive of financial consulting firm Patomak Global Partners and served as an SEC commissioner from 2002-08. Republicans will now have a 3-1 majority at the SEC. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Halliburton working to mitigate tariff impact: Update

25/04/22

Halliburton working to mitigate tariff impact: Update

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Tariff ‘shock’ prompts IMF to cut growth outlook

25/04/22

Tariff ‘shock’ prompts IMF to cut growth outlook

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