First oil
Just when we thought a period of stability was underway, oil prices have once again turned on a dime. Oil prices hit a six-month low, on news that U.S. crude supplies were surging, and that the U.S. was softening its stance on Iranian oil exports. Secretary of State Mike Pompeo confirmed the latter on Nov. 2, announcing that eight countries would be granted “temporary waivers,” so that they could continue to import Iranian crude after sanctions were re-imposed by the U.S. on Nov. 5. Although Pompeo did not reveal the list, word leaked out that India, Japan, South Korea and probably China were among the eight nations.
Brent crude price lost 17% from an early-October high of $86/bbl, while WTI dropped by a similar rate, from over $76/bbl in early October to under $63 on Nov. 2. In addition to softened sanctions, U.S. output played a role in price decline, jumping 3.8%, from 10.93 MMbopd in July to 11.35 MMbopd in August. Also, U.S. output exceeded Russia’s August production of 11.2 MMbopd, making the U.S. the world’s leading producer.
Monthly oil production reached a record high in several states, particularly Texas at 4.6 MMbpd, and North Dakota at 1.3 MMbpd. Other states with record-high output were New Mexico, Oklahoma, Colorado and West Virginia, as well as the federal Gulf of Mexico (1.9 MMbopd). So, no telling where this oil price roller coaster goes next.
OEC looks for another MOLU sponsor. Some of you, our dedicated readers, particularly those in Houston, are well-aware of the fine work done by the Oilfield Energy Center (OEC). For instance, there is the world-renowned Ocean Star Offshore Drilling Rig & Museum, housed partially on a retired jackup in the harbor at Galveston, Texas.
Then there is the outreach program to elementary, middle school and high school students, which encompasses teacher training. And the very successful Mobile Oilfield Learning Unit (MOLU) is a $1.2-million traveling exhibit, transported via truck and trailer, that features six self-contained learning stations with curriculum-based, hands-on activities about energy, and the technologies and sciences involved with oil and gas. It is geared to grades 5 through 8.
The first unit, MOLU I, was constructed and began duty in 2008. Its six sponsors include Devon Energy, Dominion Energy, ExxonMobil, Halliburton Co., Marathon Oil and Schlumberger. MOLU I is based in Houston, and has been to Colorado, California, Oklahoma, the southeastern U.S., the Rio Grande Valley, and Washington D.C. A second unit, MOLU II, was constructed and began duty in 2014. Its sponsors include Chevron, ConocoPhillips, Marathon Oil, NOV, Schlumberger and Shell. MOLU II is based in Louisiana, and in 2015 went as far as South Carolina and Florida.
A third unit, MOLU III, was constructed earlier this year and shipped to its new home in Pennsylvania just recently. Its sponsors include Cabot Oil and Gas, Schlumberger, Shell, Southwestern Energy and Williams Companies. MOLU III will travel soon to Virginia, New York, Ohio, Pennsylvania and West Virginia.
However, MOLU III is still in need of a sixth sponsor, to be fully funded. So, we at World Oil appeal to you, our readers, to please see if your company would be interested in being that sixth sponsor—it is obviously a very worthwhile program. For more information on being a sponsor, please contact OEC Executive Director Sandra Mourton at smourton@oceanstaroec.com and +1 (713) 840-1753.
Electoral votes and oil output. As this issue went to the printer, the U.S. mid-term elections had not taken place, so we will review those results in the December issue. But in the meantime, here is a factoid to consider: The states that voted for President Donald Trump represent 85% (9.66 MMbpd) of all U.S. oil production, while those that supported Hillary Clinton account for just 15% (1.69 MMbpd). 
