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• Natural Gas Prices Could Double Next Year
  Unprofitable drilling, a global recession and dwindling access to capital could lead to a decline in...
  Unprofitable drilling, a global recession and dwindling access to capital could lead to a decline in U.S. natural gas production this year and next. The declines could finally set the stage for an increase in prices in 2021, according to two reports.
  
  The predicted natural surplus is large enough at this point that the U.S. is set to enter the winter of 2020-2021 with record levels of inventories, which will prevent a rally in prices. The drop in gas output from the Permian will arrive too late for 2020 prices.
  
  But that sets the stage for a tighter market next year, as gas output continues to slide even as demand rebounds.
  
  Bank of America sees 2021 pricing at just $2.45/MMBtu – up substantially from this year, but notably short of the $3.25-$3.50 that Goldman sees.
  
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• Aker BP Eyes Layoffs Amid Oil Price Crash, Coronavirus
  Norway’s independent oil firm Aker BP will lay off some employees...

  Norway’s independent oil firm Aker BP will lay off some employees and contractors after deciding to postpone some projects and exploration wells due to the oil price crash and coronavirus-related disruptions.

  
  

  “We announced today that there will be a reduction in the numbers of employees and contractors due to reduced activities. We’ve already announced that some projects be postponed and exploration wells deferred,” company spokesman Ole Johan Faret said.

  
  

  Aker BP, 30% owned by BP, said it would cut its planned 2020 capital spending by 20% but kept its production guidance unchanged.

  
  

  The company had more than 1,700 employees and about 600 contractor workers at the end of 2019.

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• DOE has withdrawn a solicitation to purchase oil for the Strategic Petroleum Reserve
  The U.S. Department of Energy...
  
  

  
  
  The U.S. Department of Energy has withdrawn a solicitation for the purchase of 30 million barrels of oil for the Strategic Petroleum Reserve (SPR), citing a lack of certainty around congressional funding.
  
  Officials from the DOE did not respond to a request for comment on March 25 but released an amendment to its solicitation saying that the request to buy oil was withdrawn.
  
  “Should funding become secure for the planned purchases, the department will reissue the solicitation,” the department’s notice said.
  
  

  
  
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• Oil plunges after Saudi Arabia, Russia talks stall
  Oil prices tumbled Friday after Saudi Arabia said it hasn't recently held talks with Russia to end a price war that began earlier this month.
  
  Brent crude oil, the international benchmark, plunged $1.41 to $24.93 a barrel while West Texas Intermediate crude oil, the U.S. benchmark, slid a $1.09 to $21.51.
  
  The two countries have had no “discussion of a joint agreement to balance oil markets,” the Saudi Energy Ministry said in a statement.
  
  Crude oil prices crashed into a bear market this year after Russia refused to join Saudi Arabia and other OPEC members in cutting production to trim a supply glut due to demand destruction from the COVID-19 pandemic.
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• Whiting uses $650 million loan to stay afloat in Colorado
  Denver-based Whiting Petroleum Corporation confirmed it has dipped into its...
  Denver-based Whiting Petroleum Corporation confirmed it has dipped into its credit facility to the tune of $650 million to stay afloat amidst the drastic downturn in oil prices complicated by the coronavirus pandemic.
  
  The company announced over the weekend it took “proactive steps to ensure it has sufficient liquidity to fund ongoing operations.” The announcement stated that the $650 million drawn from the company’s credit facility provides “more than enough liquidity to continue its daily business and satisfy obligations to its employees  and vendors with minimal interruption as it considers all alternatives to maximize the value of the company.”
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