NrgEdge Editor

Sharing content and articles for users
Last Updated: December 16, 2021
1 view
Business Trends

Financial results for 47 U.S. exploration and production (E&P) companies show limited growth in capital expenditure during the third quarter of 2021 (3Q21), despite more cash from operations. Oil prices have been generally increasing since 3Q20, reaching seven-year highs in November 2021. Although cash from operations has more than doubled over the past four quarters for these companies, capital expenditure increased by comparatively less (54%) and remained significantly lower than the 2015–19 average. With higher cash flow, publicly traded E&P companies were repurchasing more of their shares of stock, increasing dividends, paying down debt, and increasing their cash balances. Our analysis of public statements from these companies suggests capital expenditure this year will be effectively the same as in 2020.

We base this analysis on the published financial reports of 47 publicly traded U.S. oil companies. As a result, the observations do not necessarily represent the sector as a whole because the analysis does not include private companies that do not publish financial reports. In 3Q21, these 47 publicly traded companies collectively produced 5.3 million barrels per day (b/d) of crude oil and natural gas liquids (NGL) in the United States, or about 32% of all U.S. crude oil and NGL production for the quarter.

The West Texas Intermediate (WTI) crude oil price averaged $70.61 per barrel (b) in 3Q21, an increase of $29.72/b (73%) compared with 3Q20. Higher prices contributed to a year-over-year gain of 130%, or $12.8 billion, in cash from operations. Cash from operations reached $22.7 billion in 3Q21, the most generated by these companies in any quarter since 3Q18. Their liquids production was flat year-over-year at 6.0 million b/d in 3Q21 and declined by 4% from the previous quarter. Compared with pre-pandemic levels, production in 3Q21 was 1.2 million b/d (16%) less than in 1Q20. Over the last four quarters, their capital expenditure increased by 54% to reach $9.3 billion in 3Q21 (Figure 1).

Figure 1. Cash flow statement items for 47 U.S. oil companies

Capital expenditure by these companies began declining at the beginning of 2019 and decreased year-over-year by $3.9 billion (20%) in 1Q20. The significant decline of crude oil prices in 2020 associated with the COVID-19 pandemic accelerated the decline in capital expenditure, which fell to $6.1 billion in 3Q20 and led to cash from operations falling to $3.8 billion in 2Q20, the lowest level for either since at least 2012. Although cash from operations increased by $18.9 billion through 3Q21 compared with its 2020 low, capital expenditure increased by only $3.3 billion. Historically, the ratio of capital expenditure to cash flow has been greater than 100%, reflecting the capital intensive nature of exploration and production as well as the need for outside sources of capital to fund drilling projects. With more growth in cash from operations than in capital expenditure, however, this ratio fell to 41% in 3Q21, the lowest ratio on record since 1995 (Figure 2).

Figure 2. Ratio of capital expenditure to cash flow for 47 U.S. oil companies

In 2020, significant economic disruptions contributed to the most U.S. corporate bankruptcies since 2010, including 69 in the energy sector. In this context, E&P companies focused less on long-term investments in capital expenditure and more on paying down debt, repurchasing shares, and increasing dividends to improve their short-term financial positions and improve shareholder returns. In the first three quarters of 2021, these 47 companies paid off $15 billion in debt, repurchased $1.9 billion in shares, and paid out $6.9 billion in dividends, coming close to matching the $25.3 billion spent on capital expenditure (Figure 3). In 3Q21 alone, these companies reduced debt by $7.9 billion dollars, more than any other quarter in over 10 years, and brought their long-term debt to the lowest level since 2012. Dividends for the first three quarters reached their highest level since 2015, and companies distributed 26% more cash to shareholders than their five-year (2016–2020) average. In addition, these companies increased their cash balances by $11.2 billion, increasing their cash reserves above their five-year average. Increased cash reserves can stabilize business operations in volatile price environments, but they also can serve to prepare for acquisitions or other uses of cash.

Figure 3. Sources and uses of cash for 47 U.S. oil companies

Publicly traded companies often publish future plans for their operations and spending, called company guidance, to help investors analyze company performance. Some, but not all, companies release this information in corporate presentations, press releases, and official filings with the U.S. Securities and Exchange Commission. An analysis of company guidance from 41 currently operating and 21 formerly operating E&P companies shows that actual capital expenditure in the last four years exceeded announced spending by 9% on average (Figure 4). However, actual spending in 2019 and 2020 showed a smaller deviation from guidance numbers, likely due to declining capital expenditure budgets in those years. If actual spending compared with company guidance in 2021 matches the deviation seen in 2020, this year’s capital expenditure will be effectively flat compared with actual spending in 2020. As of December 10, 2021, only two companies in the dataset have provided guidance on capital expenditure in 2022.

Figure 4. Capital expenditure for 62 U.S. oil companies

U.S. average regular gasoline and diesel prices decrease

The U.S. average regular gasoline retail price decreased nearly 3 cents to $3.32 per gallon on December 13, $1.16 higher than a year ago. The Gulf Coast price decreased 5 cents to $2.94 per gallon, the Rocky Mountain price decreased nearly 4 cents to $3.43 per gallon, and the Midwest, East Coast, and West Coast prices each decreased more than 2 cents to $3.08 per gallon, $3.28 per gallon and $4.16 per gallon, respectively.

The U.S. average diesel fuel price decreased nearly 3 cents to $3.65 per gallon on December 13, $1.09 higher than a year ago. The Gulf Coast price decreased 3 cents to $3.37 per gallon, the East Coast price decreased nearly 3 cents to $3.63 per gallon, the Midwest and Rocky Mountain prices each decreased more than 2 cents to $3.51 per gallon and $3.76 per gallon, respectively, and the West Coast price decreased nearly 2 cents to $4.40 per gallon.

Propane/propylene inventories decline

U.S. propane/propylene stocks decreased by 2.4 million barrels last week to 70.9 million barrels as of December 10, 2021, 8.1 million barrels (10.2%) less than the five-year (2016-2020) average inventory levels for this same time of year. Gulf Coast, East Coast, Midwest, and Rocky Mountain/West Coast inventories decreased by 1.3 million barrels, 0.5 million barrels, 0.4 million barrels, and 0.1 million barrels, respectively.

Residential heating oil prices increase, propane prices decrease

As of December 13, 2021, residential heating oil prices averaged nearly $3.35 per gallon, almost 3 cents per gallon above last week’s price and $1.01 per gallon higher than last year’s price at this time. Wholesale heating oil prices averaged nearly $2.39 per gallon, 13 cents per gallon above last week’s price and almost 85 cents per gallon above last year’s price.

Residential propane prices averaged nearly $2.70 per gallon, more than 1 cent below last week’s price but almost 80 cents per gallon above last year’s price. Wholesale propane prices averaged nearly $1.20 per gallon, almost 3 cents per gallon above last week’s price and 48 cents per gallon above last year’s price.

financial markets oil petroleum production supply
0 0

Something interesting to share?
Join NrgEdge and create your own NrgBuzz today

Latest NrgBuzz

How Do You Detect Gas Leaks In Your Home?

Everyone should always be mindful of gas safety. Although natural gas and liquid petroleum gas (LPG) don't immediately represent a hazard of poisoning, they present a significant risk of a fire or explosion. It is crucial to keep yourself safe by being aware of the risks and learning how to spot a gas leak.

Natural gas like practically all other energy sources is harmful if not handled properly. You may protect yourself and your loved ones by following a few basic safety precautions (and understanding what to do if you have a gas leak or have been exposed to one). 

Is Using Natural Gas In The Home Safe?

Natural gas is a reliable, safe power source when handled properly. Although burning natural gas emits some greenhouse gases, it is still a more environmentally friendly option than using other fossil fuels. But natural gas is a combustible substance. A natural gas leak in a home could result in a fire, and breathing it in could poison you with natural gas. It is important to use caution when exposed to natural gas, just as with electricity, gasoline, and other potentially hazardous energy sources.

Is There A Gas Leak In Your Home?

If you suspect a gas leak, you should immediately call the National Gas Emergency Service number. Try to open a few windows to allow for airflow before doing so. Immediately leave the premises if you smell gas in a cellar. Our article will explain what to do in your home to assist you to remain safe in the case of a leak so that you are always ready.

Underground pipes used to carry the gas to buildings might cause external gas leaks. If you're outside a building and you smell gas, there probably is a leak, therefore you should call the National Gas Emergency Service.

Appliances that are broken or improperly installed frequently result in gas leaks in homes. Usually, the pipe entering your appliance is where the leak originates. If you've made sure the appliance is turned off, for example, by turning all the knobs on your stove to the off position, then a problem with the hose is probably to blame for your gas leak.

Any appliances you install must be done so by a qualified Gas Safe registered engineer and are given a regular gas safety check or service to assist reduce the danger of a gas leak brought on by a faulty appliance. Make sure to verify their accreditation on the Gas Safe Register website before work begins.

How To Detect Gas Leaks?
  • Look For The Smell Of Sulphur Or Rotten Eggs

Due to the lack of color and smell in most gases, natural gas companies typically add the chemical mercaptan to give it a specific smell. Your home frequently smells like sulphur or rotting eggs when the smell is present. If you spot this specific smell, it could be wiser to investigate the leak's origin or contact a technician.

  • Be Alert For Any Hissing Or Whistling Sounds

If you hear a whizzing or whistling sound close to your gas line, you may be experiencing a serious gas leak. If the noise is coming from the area where your air conditioner is, it can be coming from a refrigerant line, a faulty valve, or a damaged compressor.

  • Implement A Gas Leak Detector

The best approach to determine whether you have a gas leak is to buy a gas leak detector. You have a variety of gas leak detection options. Sensors and leak detectors come in a wide variety. When shopping online, it's important to buy a detector that can detect several different gases. To keep you and your family safe at home, explore different options for gas leak detectors and sensors.

  • Check The Stove Or The Burner Top.

When a stovetop burner is lit, the flame is often blue. The existence of a gas that is removing oxygen from the atmosphere could be indicated by orange or red flames emerging from your stove burner.

  • Conduct The Soapy Water Test

A spoonful of soap and a glass of water combined to create a concentrated solution. Spray the soap-and-water solution on the area that is thought to be leaking, then look for bubbles to form. It suggests the area is experiencing a gas leak.

September, 24 2022
How To Fill A Portable Helium Tank

Having a helium tank can be helpful if you often arrange or plan big parties. A portable helium tank may be easily filled, which is a blessing. You can bring it to a shop to refill it or order online from a gas service provider store that offers helium gas tank services. 

Refill Your Portable Helium Tank

Some portable helium tanks cannot be filled again. A single-use tank that is being attempted to be refilled has the potential of bursting, inflicting harm on everyone around. If you have a refillable tank, the first thing to do is call nearby businesses to determine whether they provide refill services. The store where you bought the first tank might be able to provide you with a refill. There are other places you can acquire a portable helium tank refill if the store is closed or if you have relocated.

Find local gas and welding shops, party supply stores, and balloon shops by conducting a web search. If these businesses provide helium tank refilling, they frequently list the service on their website. Call nearby businesses to verify that they can fill the tank and to learn what hours they are open to performing the service. Additionally, this provides a chance to contrast helium pricing.

Once you've located a spot, bring the tank there to be refilled. Make sure to take the tank's balloon inflator attachment off before transporting the tank, replacing it with the steel cap. As you are driving, check to make sure the tank is stable and won't fall or roll.

Refillable Helium Tank vs. Disposable Helium Tank

A reusable helium tank may be less expensive than a refillable one. However, if you host gatherings frequently, a refillable cylinder can be a more economical choice. Refillable tanks are an excellent solution for a single event and are available for rental at several party supply retailers.

If you decide to use a disposable tank, keep in mind that you cannot just throw it away. Be sure to properly dump the tank when you've finished using it. Check with your recycling company to determine if doorstep service is an option. Alternately, look up steel recycling businesses in your neighborhood. When disposing of an inflated portable helium tank, make sure to follow all federal, state, and municipal laws.

Considerations Before Using A Portable Helium Tank

It may take some time to receive a refill, and not all stores are open on weekends and holidays. Thus, before an event, make sure you have enough helium to satisfy your needs. Approximately 0.15 cubic feet of helium should be used for each little 7-inch balloon. The amount of helium needed to fill an 18-inch foil balloon is roughly 0.44 cubic feet, whereas an 11-inch balloon requires roughly 0.5 cubic feet.

It's crucial to use and store your portable helium tank carefully if you plan to buy one. Children should not be let near uninflated balloons or tanks because both are potentially dangerous. Helium can hurt you if it is sprayed into your mouth or face because of the pressure. Use helium outside or in a room with good ventilation. Don't drop or damage the cylinder in any way.

Make sure the space is dry when you store the canister because moisture can cause helium tanks to corrode. Temperatures in the storage area shouldn't get above 120 degrees Fahrenheit.

September, 21 2022
Layout and Maintenance of Wood Pellet Machine Mould

As the core component, style of the wood pellet mill for sale has a great influence on improving the result and high quality of wood pellet production, lowering power consumption, and also minimizing manufacturing expenses.

At the same time, the timber pellet maker mold and mildew are likewise one of the most conveniently used parts. Consequently, it is very crucial for wood pellets producers to understand the layout and application of ring die, and also to make the appropriate selection, rational usage, and also reliable upkeep of ring die.

The following is a quick evaluation of the style, option, use, and also upkeep of the ring die for a referral.

1, Decision of ring pass away diameter as well as ring pass away efficient pressing size specifications

a, The size and also efficient width of the ring die is the main specifications of the wood pellet device die

According to the global timber pellet equipment parameters and also concern series to figure out the ring die size collection, RICHI mainly has the complying with the collection of timber pellet machines:

MZLH320 Wood Pellet Machine

MZLH350 Wood Pellet Making Machine

MZLH420 Wood Pellet Mill

MZLH520 Wood Pellet Maker

MZLH768 Wood Pellet Press

MZLH858 Wood Pelletizer

According to the proportion of equal practical pushing location as well as an equal power, determine the reliable size of the ring passes away.

b, Decision on the rotational speed of the press roller of the wood pellet device

The rotational speed of the journalism roller is associated with the geometric parameters of the timber pellet equipment itself. According to the information detection of the technical criteria of the global pellet equipment, for the ring pass away pellet equipment with 2 pressing rollers, the direct rate at the internal diameter of the ring die is 6-12m/ s better. This is additionally the distinction between the rate of the sawdust pellet machine as well as the feed pellet machine.

The rate of the roller of the timber pellet equipment directly affects the thickness of the material in the pelletizing chamber and also the time for the material to travel through the die opening, which in turn impacts the outcome of the pellet device as well as the top quality of the pellets. If the line speed is too high, under the exact same output, the ring die produces much fewer bits per change, and also the product in the granulation area is little and also unevenly dispersed, which might cause product mistakes, alternate granulation, loose fragments with different lengths, and a large amount of powder. Can't even powder. A lower ring dies line rate can create pellets as well as can produce better pellets, yet the throughput is relatively low.

c, Determination of the size of journalism roller

Ring Die of Pelletizing Equipment

The standard pelletizing principle for pellet formation is received in the figure listed below. The timber pellets can get rid of the resistance of the material going through the aperture of the ring die through the shared extrusion force between the ring pass away as well as the pressing roller, so as to attain the function of granulation.

Pelletizing Concept

Under the same ring dies, the larger the size of the stress roller, the greater the range of triangular extrusion developed between the ring die and the stress roller, which is more conducive to the extrusion result.

In theory, talking, the diameter of the pressure roller of a solitary roller can be the largest, as well as the extrusion time, and also extrusion impact must be the most effective. However, in the procedure of the wood pellet mill, one of the most force in between the pressing roller and the ring die is transferred between the major shaft, the bearing, and the empty shaft, so the mechanical framework of the single-roller granulator is coarse, so it can just be used on a little experimental granulator. It is tough to be utilized in large-scale pellet mills, and also the double-roller sawdust pellet mill has actually come to be the most pre-owned version in the pellet.

2. Ring pass away product and warmth therapy

wood pellet machine ring die

wood pellet machine ring die

Wood pellet maker molds are normally made from carbon steel, alloy steel as well as stainless-steel through forging, reduction, exploration, warmth therapy, and various other processes. The product utilized in the ring pass away and also each handling procedure have a straight influence on its service life, granulation high quality as well as the outcome.

Carbon Steel-- Heat Treated Firmness HRC45-50. The wear resistance and deterioration resistance are reasonably poor and are essentially gotten rid of.

Alloy Steel-- Warmth treated with a firmness above HRC50. The thorough mechanical buildings are high, as well as the usage rate is the highest possible.

Stainless steel-- Great hardness and also toughness, total quenching, as well as good wear, and also rust resistance. But its high price has actually dragged down general use.

3. Ring pass away hole structure, compression proportion

 ring die hole

ring die opening

Typical timber pellet maker molds have straight holes, decompression holes, outer conical openings and also inner conical holes. The major criteria are:

Die opening size, ring pass away density, ring die efficient density, decompression opening size, pass away opening facility range, wall surface thickness between die openings, ring pass away diameter, and ring pass away reliable width.

The compression ratio is the ratio of the effective thickness of the ring passing away to the diameter of the die hole. It is an indicator of the extrusion toughness of wood pellets. The greater the compression ratio, the more powerful the extruded particles. Therefore, the die hole of the ring die is determined according to the different raw materials of wood.

4. Usage and also maintenance of wood pellet maker mold

Right adjustment of the working gap in between the ring pass away and journalism roller is vital to the use of the ring die. Usually talking, the void in between the ring die as well as the pressing roller is between 0.1-0.3 mm.

When the space is too huge, the machine will certainly be obstructed as a result of not enough extrusion force. If the space is also small, it is very easy to damage the ring die and the pressing roller. For the operator, it is needed to have useful operation experience and be able to masterfully pick and change the gap of the ring die roll. The adjustment work needs to be grasped with a long-term granulator production technique.

View more content:

September, 19 2022