Page 11 - NorthAmOil Week 11 2022
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NorthAmOil                           PROJECTS & COMPANIES                                        NorthAmOil


       Petroecuador’s oil trading manager says




       US buyers are eyeing Ecuadorean crude




        ECUADOR-US       A representative of Ecuador’s national oil com-  crude oil by extending an existing three-year
                         pany (NOC) Petroecuador told Bloomberg on  contract that is scheduled to expire in Decem-
                         March 16 that the US government’s decision to  ber 2023. The Shell arm has indicated that it is
                         ban imports of Russian crude had generated  willing to pay a higher price, provided that it can
                         new interest in Ecuadorean feedstock among US  take delivery at the terminus of the Heavy Crude
                         refiners and traders.                Pipeline (OCP) system, which is capable of han-
                           Pablo Noboa, Petroecuador’s oil trading man-  dling larger tankers, he added.
                         ager, reported that refiners Valero Energy and   Meanwhile, he stated, Marathon is hoping
                         Marathon Petroleum, as well as Shell Western  to start buying Ecuadorean heavy sour crude
                         Supply and Trading, a trading unit of Shell (UK),  as early as June of this year and wants to pur-
       Certain US refiners   had all been seeking to buy crude from Ecuador.  chase 11-22 cargoes over a period of about 11
       and traders have been   Teams from the NOC have been holding meet-  months. Petrojam, the state-owned oil company
       seeking to buy crude   ings in Louisiana this week with representatives  of Jamaica, is seeking a similar deal for 11 car-
       from Ecuador.     of these and other companies, he said in an inter-  goes, he said.
                         view with Bloomberg.                   Bloomberg sought to confirm Noboa’s state-
                           He described these firms’ outreach to Petro-  ments but was unable to obtain comments from
                         ecuador as a direct response to the removal  Shell, Marathon or Valero. Petrojam’s general
                         of Russian supplies from the US market. “US  manager Winston Watson said in a recent state-
                         refiners and traders are eager to sign mid- and  ment, though, that his company was in discus-
                         long-term supply contracts after Russia invaded  sions with Nigerian National Petroleum Corp.
                         Ukraine,” he told the news agency. “When oil in  (NNPC) on a supply deal for 4mn barrels per year
                         the global market is scarce, it makes sense to try  (nearly 11,000 barrel per day, or bpd) of oil. The
                         to secure a steady supply.”          company is also “currently in dialogue with Petro-
                           According to Noboa, Shell Western Supply  ecuador and Ecopetrol in Colombia to establish
                         and Trading aims to purchase more Ecuadorean  term supply agreements,” Watson added.™

                                               ENERGY TRANSITION

       Range, US Well Services agree



       to electric fleet extension





        APPALACHIAN      US Well Services (USWS), a provider of hydrau-  supplied natural gas, including field gas sourced
        BASIN            lic fracturing services, said on March 14 that it  directly from the wellhead.
                         had finalised a deal with Appalachian producer   Electric fracking technology is becom-
                         Range Resources to extend an existing elec-  ing increasingly popular as operators seek to
                         tric fleet contract that is due to expire this year.  decrease emissions while still generating oper-
                         Under the terms of the extended contract, USWS  ational efficiencies. USWS says its technology
                         will provide a new Nyx Clean Fleet to support  offers customer fuel cost savings compared to
                         Range’s Appalachian completion programme  conventional diesel fleets. Rapidly rising diesel
                         until the end of 2024 after the current contract  prices are also driving increased demand for
                         expires in November 2022.            electric frack technology. Indeed, USWS said in
                           The deal is the third contract between the  its announcement that diesel prices and efforts to
                         two companies. USWS initially began provid-  reduce greenhouse gas (GHG) emissions were of
                         ing Range with well completions services in  increasing concern to its customers.
                         mid-2019.                              By last autumn, the number of fracking fleets
                           “US Well Services is proud to continue our  that were electric or running on a combination
                         relationship with Range Resources,” stated  of diesel and natural gas in the US had risen to
                         USWS’ president and CEO, Joel Broussard.  over 100. This represents almost half of the coun-
                         “Range is not only a best-in-class E&P operator  try’s working fleets and a three-fold increase
                         in the Marcellus, but also a strong partner for  compared with 2019.
                         USWS,” Broussard added.                Analysts have projected that electric fracking
                           USWS uses a fully electric, mobile well-stim-  or dual fracking fleets will comprise close to 60%
                         ulation system that  is powered  by locally  of active fleets by next year.™

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