Field news and more

ERCE 2016 Oil Price Review

TAG Oil’s friends at ERC Equipoise have kindly allowed us to share their report on the big drivers they currently see in oil markets. This report reviews current oil and gas prices and looks at some of the global macro indicators influencing these trends. In addition, it provides current oil price decks and reviews oil price assumptions presented by other petroleum consultants, analysts and agencies.  A few of the issues they cover include….. Have we bottomed out?  Crude oil prices rallied to a 2016 high in mid-April. Heads of the…

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Women in the oil business

The stats are in: We need more women in the oil and gas industry.   An American Petroleum Institute study released last year showed women make up only 19 percent of the oil industry’s workforce. Of course, we didn’t need a study to tell us the percentage was low, it’s easy to see that the oil and gas industry is male dominated: It actually has one of the lowest percentages of woman than any other field. One barrier that causes women to stay away from the industry is misinformation, such…

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TAG Oil’s summer study program

Over the 2015 / 2016 New Zealand summer, now coming to a close, TAG Oil Ltd. has been home to engineering student Cody Brown, accounting student Sam Pearce, and geology students Henry Nagel and Nathan Murray. During the summer program, students have been fortunate enough to gain experience and insight into the operations that are undertaken at TAG. The students were exposed to projects that directly related to their chosen fields, including regular site visits, a Vause training day, the dreaded weekly boot camp, the Kapuni 3D seismic field trip,…

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The case against focusing on inventories alone

It’s Wednesday in North America, which is typically the day the Department of Energy (DOE) puts out the weekly U.S. inventory numbers. These inventory numbers can be useful for determining how much product is in storage, short term direction in oil prices (West Texas Intermediate in particular), and directionally, where supplies are building or falling. The markets are clearly looking beyond these numbers (and likely the drops in distallate inventory), as last Wednesday, the WTI price spiked almost $1.50/b in less than a minute following the announcement of the DOE’s…

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Liquidity: Does it Matter?

Let’s switch our focus to the market side and talk Liquidity. In the widest, most straightforward way possible, liquidity is a market’s ability to purchase or sell an asset without a causing drastic change in the asset’s price. Investors have varying opinions on the importance of liquidity. Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc. has famously stated: “Only buy something that you’d be perfectly happy to hold if the market shuts down for 10 years.” He believes investors should treat their equity holdings like real estate purchases, focusing…

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Welcome to the world, Lachlan

We are so happy to announce that Shane Hamnett (TAG VP of Operations) and his wife welcomed a beautiful baby boy into the world on May 12th. Lachlan James Hamnett was born in New Zealand weighing 8 lbs 13 oz. Having a baby is a wonderful, exciting, life changing event, and everyone at TAG Oil would like to congratulate Shane and his family, and to wish them all the best on the journey that lies ahead.

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Brent Blend & WTI — what’s the difference?

Because the crude oil market is extremely diverse and relatively stable, it’s easier if sellers and buyers have a standard price to gauge the markets. The two primary benchmarks that determine the pricing of crude oil are Brent and WTI, or West Texas Intermediate. WTI is sold mainly on NYMEX and Brent is sold on ICE Futures Europe. The main factors that decide which benchmark oil will be pegged to are the quality of the oil and the extraction location of the oil being produced. WTI is the main benchmark…

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Hiking to the summit

After several days of intensive strategy and technical meetings at TAG Oil’s head office in Vancouver, CEO Toby Pierce, COO Henrik Lundin, Director Dave Bennett, Geologist David Loretto, and I set out for a day of hiking near Squamish, British Columbia. Stunning Squamish, a scenic 60 km drive due north of Vancouver, is known for its rock climbing, kayaking, mountain biking, kite surfing and more, but it’s the hiking that drew our intrepid crew up. During the challenging hike, I quickly realized that my associates were as determined and competitive…

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The IEA Calls for Market Balance

There have been many discussions around the supply and demand of global oil markets, and a recent report published by the IEA (International Energy Agency) projects a balanced market somewhere in mid-to-late 2016. In the April report, the IEA’s numbers showed signs of increasing global oil demand, while non-OPEC supplies declined, signaling a more balanced future scenario. Granted, this report came out a week before OPEC member countries – and others, who together supply more than half of the world’s oil – met in Doha to discuss a production freeze.…

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Life without oil

Think that oil is only used for gasoline? In reality, gas makes up just 46% of oil usage. So where does the other 54% go? Living without oil would mean living without your smartphone, tires, vitamins, surfboards, roads….. Check out the chart below, thanks to OilFieldPulse, and also take a look at our video.

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