Field news and more

Exploration and production set to rise

According to a new Wood Mackenzie report, upstream oil and gas industry projects are set to double in 2017 compared to 2016. Although still 40% below 2014 pre-crash levels, exploration and production spending is expected to rise by 3%, to $450 billion. The oil slump caused the companies that survived to become more efficient and to cut costs in ways they never have before. Malcolm Dickson, a Wood Mackenzie principal analyst for Upstream Oil and Gas stated, “2017 will demonstrate how efficient the oil and gas industry has become, showing…

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The Energy Commodity Price Turnaround

Energy commodity prices made a turnaround in 2016 and rose more than any other commodity sectors for the year. The Spot Energy Index in the S&P Goldman Sachs Commodity Index (GSCI) rose 48% since the start of 2016; Industrial Metals had the second highest rise at 22%. The Energy Index typically follows major price movements in the crude oil market, as the two major crude benchmarks—West Texas Intermediate (WTI) and Brent—contribute to 69% of the weight in the S&P GSCI Energy Index. The rise of oil prices follows two years…

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See the TAG Opportunity from CEO Toby Pierce

In late October, we were able to capture TAG Oil CEO Toby Pierce sharing the TAG opportunity with shareholders, through the most recent investor presentation. Toby gave an operational update covering the waterflood program, Sidewinder progress and more, and shared more details on the definitive agreement that TAG entered into to expand into Australia’s Surat Basin in 2017. Listening to the TAG’s story and future plans certainly has us excited—what about you? TAG Oil Fall 2016 Investor Presentation from TAG Oil on Vimeo.

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Happy Holidays from TAG!

TAG Oil is contributing to the Red Cross in New Zealand, which is directly supporting thousands of New Zealanders still in need after the devastating earthquakes of mid-November. To learn more or to donate, please see http://bit.ly/NewZealandRedCross

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Reversing Middle East oil dependence

It’s well known that Kuwait and United Arab Emerates (UAE) are two of the most petroleum-rich countries in the world, not to mention in the Middle East. But did you know that since March 2016, the U.S. has been exporting natural gas to a few middle-eastern countries? And that they are, in fact,  growing gradually dependent on US exports? At the current rate of production, Kuwait and UAE actually hold more than 100 years of gas reserves. So why are they in need of imports from the US? The problem…

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The more the merrier when it comes to production cuts

Non-OPEC countries have announced they’re limiting their oil production, following suit with the 1.2 million barrel cuts that OPEC countries announced two weeks ago. Eleven non-OPEC countries have agreed to curb production by 558,000 barrels, and oil prices continue to rise on the good news.  Along with the non-OPEC cut, Saudi Arabia’s energy minister agreed to substantially cut more than the 486,000 Bpd previously announced. This will be the first pact in 15 years between the two groups—together they produce roughly 60 percent of the world’s crude—that have always been…

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What did past OPEC cuts accomplish?

As reported on the TAG Oil blog (and every other stock watch and natural resources outlet), OPEC  announced on November 30 that they’d agreed to cut production in hopes of reviving oil prices after a two-year slump (see our 12/1 post).  But what will the production cut accomplish?  The past is always a good indicator of what might happen in the future…and we happen to have a chart for that. The EIA chart below shows what OPEC production cuts in 2008, 2001 and 1998 did for oil prices in the…

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Next Steps and Video of TAG’s Cardiff 3 Well

As we reported in TAG Oil’s December 6 press release, the initial flow testing on Cardiff 3 well was a success!  The Cardiff field sits below TAG’s producing Cheap field, and the Cardiff 3 well test produced gas and condensate to the surface from the deeper Kapuni formation.  The Kapuni name has deep roots in New Zealand. It is named after the nearby Kapuni Field, which was not only New Zealand’s first major gas discovery, but it is also the second largest onshore gas/condensate field in New Zealand, having produced…

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What costs $292,000 per barrel?

As the price of crude climbs in the wake of the OPEC 2% production cut announcement, we’ll be curious to see just how high the price of oil will go, and how long it will be sustained.  The absolute peak of oil was in June 2008 at $139.05 bbl, which at a glance, seems like an excessive number, but in comparison to other products in the same amount, it’s actually quite reasonable.  Check out the price of a barrel of other household items—the prices may shock you!

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A deal is struck. Long live the deal.

After months of speculation, OPEC has finally reached a production reduction deal.  Members have agreed to cut 1.2 million barrels per day, OPEC’s first production cut in eight years.  The announcement has already had an effect on oil prices, with crude jumping more than 10%. The cut will be distributed between OPEC members beginning in January 2017.  Here is what the cut will look like: As previously suspected, Libya and Nigeria have been exempted from the production deal, and Iran—which is still recovering from sanctions—is allowed to raise output by…

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