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Released May 01, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Net U.S. production was up nearly 7% from fourth-quarter levels due to increased drilling inland and production offshore, Hess Corporation (NYSE:HES) (New York, New York) said Wednesday.
Hess is one of the more active players in the Bakken shale formation in North Dakota, accounting for about 12% of the upstream activity in the state. The company said its net production in the Bakken averaged 195,000 barrels of oil equivalent per day (Boe/d) during the fourth quarter, compared with 190,000 Boe/d sequentially.
Oil and gas regulators in North Dakota said recently they were fretting over the price of oil, with operators looking to break even at between $50 and $60 per barrel. West Texas Intermediate (WTI), the U.S. benchmark for the price of oil, was trading at around $59.50 early Wednesday, and Bakken crude typically trades at a discount to that benchmark.
Meanwhile, pressure variances in the basin mean it's starting to become gassier, limiting the expectations for some major producers. Nevertheless, Hess said it plans to keep four rigs active in the Bakken this year, with production in the range of 210,000 Boe/d to 215,000 Boe/d expected during the second quarter.
Elsewhere, Hess reported that its net production from the Gulf of Mexico, renamed by the Trump administration the Gulf of America, increased from 31,000 Boe/d during the fourth quarter to 41,000 Boe/d over the three-month period ending March 31. The company attributed the increase to the start of production from the Pickeral well, which is tied back to the Tubular Bells production facility.
Hess is working at Tubular Bells alongside Houston-based supermajor Chevron Corporation (NYSE:CVX) (Houston, Texas), which is slated to take over the company with a close expected during the first half of this year. Chevron said it would cut its workforce by as much as 20%, or around 9,000, adding the move was necessary to stay competitive in the global market.
Outside of North America, Hess is working to help Guyana start from zero as an emerging crude oil exporter, though production faltered from 190,000 Boe/d to 183,000 Boe/d at the offshore Stabroek block.
But its largest development to date, Yellowtail, is on pace for first production by the third quarter, with an estimated rate of 250,000 Boe/d. Production there will utilize the floating production storage and offloading vessel One Guyana, which arrived offshore in early April. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.
Hess said 14 cargoes laden with crude oil left Guyanese shores during the first quarter, one less than during the fourth quarter. During the second quarter, Hess is expecting 15 cargoes of crude oil to be sold from Guyana.
Chevron is slated to release its first quarter earnings report on May 2. Hess reported net income of $434 million, compared with $997 million during the fourth quarter. Apart from lower commodity prices, Hess said its operating costs where about $2 per barrel of oil equivalent higher due to increased maintenance activity in North Dakota.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Hess is one of the more active players in the Bakken shale formation in North Dakota, accounting for about 12% of the upstream activity in the state. The company said its net production in the Bakken averaged 195,000 barrels of oil equivalent per day (Boe/d) during the fourth quarter, compared with 190,000 Boe/d sequentially.
Oil and gas regulators in North Dakota said recently they were fretting over the price of oil, with operators looking to break even at between $50 and $60 per barrel. West Texas Intermediate (WTI), the U.S. benchmark for the price of oil, was trading at around $59.50 early Wednesday, and Bakken crude typically trades at a discount to that benchmark.
Meanwhile, pressure variances in the basin mean it's starting to become gassier, limiting the expectations for some major producers. Nevertheless, Hess said it plans to keep four rigs active in the Bakken this year, with production in the range of 210,000 Boe/d to 215,000 Boe/d expected during the second quarter.
Elsewhere, Hess reported that its net production from the Gulf of Mexico, renamed by the Trump administration the Gulf of America, increased from 31,000 Boe/d during the fourth quarter to 41,000 Boe/d over the three-month period ending March 31. The company attributed the increase to the start of production from the Pickeral well, which is tied back to the Tubular Bells production facility.
Hess is working at Tubular Bells alongside Houston-based supermajor Chevron Corporation (NYSE:CVX) (Houston, Texas), which is slated to take over the company with a close expected during the first half of this year. Chevron said it would cut its workforce by as much as 20%, or around 9,000, adding the move was necessary to stay competitive in the global market.
Outside of North America, Hess is working to help Guyana start from zero as an emerging crude oil exporter, though production faltered from 190,000 Boe/d to 183,000 Boe/d at the offshore Stabroek block.
But its largest development to date, Yellowtail, is on pace for first production by the third quarter, with an estimated rate of 250,000 Boe/d. Production there will utilize the floating production storage and offloading vessel One Guyana, which arrived offshore in early April. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.
Hess said 14 cargoes laden with crude oil left Guyanese shores during the first quarter, one less than during the fourth quarter. During the second quarter, Hess is expecting 15 cargoes of crude oil to be sold from Guyana.
Chevron is slated to release its first quarter earnings report on May 2. Hess reported net income of $434 million, compared with $997 million during the fourth quarter. Apart from lower commodity prices, Hess said its operating costs where about $2 per barrel of oil equivalent higher due to increased maintenance activity in North Dakota.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
