HEADLINES: Update On Oil Rig Explosion; Analyzing NYC's Lawsuit

We begin with an update on the oil rig explosion in Eastern Oklahoma. According to reports, the Pittsburg County Sheriff said the bodies of five workers have been recovered. The accident happened on Jan. 22 at a Red Mountain Energy well that was being drilled by Houston-based Patterson-UTI Energy, which has promised a full investigation. We at Hart Energy want to offer our condolences to the families of the workers.

Three of the biggest service companies held earnings calls over the past week. Among the highlights, Schlumberger announced it has decided to exit the land and marine seismic acquisition business. Schlumberger CEO Paal Kibsgaard said “given our history and market position this has not been an easy decision to make but following a careful evaluation of the current market trends, our customers buying habits, and our current and projected financial returns, it is the unfortunate and inevitable outcome.”

Halliburton reported a bigger than expected fourth-quarter profit, as higher oil prices pushed U.S. production to record levels. The company was upbeat about the health of the U.S. oil industry given the rise in oil prices and increased drilling. CEO Jeff Miller said, “I am excited about 2018, the supply and demand dynamic is correcting and commodity prices are improving, supporting activity around the globe.”

Baker Hughes, a GE company, said it still plans on investing in R&D efforts going forward.

In A&D news, Vanguard Natural Resources and Samson Oil and Gas are divesting in the Williston, while Canyon Creek Energy is acquiring drilling locations in the Arkoma Stack.

And finally, Hart Energy’s Senior Editor Joe Markman spoke to Houston Energy Litigator John Zavitsanos about New York City’s lawsuit against five major oil companies over climate change. Zavitsanos said the lawsuit can’t be taken lightly but pointed out several factors that could make it difficult to get through the courts. Saying, “I think it’s probably 70% political, 30% hail mary.” 9 cities have filed suits, with the San Francisco suburb, Richmond being the latest.

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Jessica Morales

Jessica Morales is the video reporter for Hart Energy. She contributes to the Digital News Group's interviewing and video production. 

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