The U.S. oil flooding Europe impacted the prices in April of 2018. The Organization of the Petroleum Exporting Countries tried to balance the market. U.S. oil producers and others were negatively affected by the low prices. The companies laid off many employees to make up for the loss of profit. Fieldwood and other drillers went bankrupt. However, there are currently signs of an improving market.
Countries like Saudi Arabia and Russia have had a monopoly on oil production. Some of the oil producing countries are not friendly to the U.S. and others are politically unstable. These countries are a part of OPEC.
Engineers have developed hydraulic fracturing, as well as technologies to lower the cost and well failure rates. In 2014, oil-producing nations had to cut their oil prices in half to compete with countries that used new technologies. In 2018, oil prices have risen to $80 dollars barrel. In August, the U.S. crude dropped to a seven week low.
The U.S. crude has decreased by 14 million barrels. Some experts think a lower oil price is good for the economy because consumers and businesses save money. Others believe a higher price is better for the economy, since it will help the global markets.
A lot of technology companies that specialize in innovative extraction go out of business when oil prices fall. Airlines experience declines in international flights. They sometimes have to raise their prices to make up for the increased oil prices. Domestic oil production in West Texas has seen cost parity with oil-rich nations. In 2017, Texas oil producers saw a three percent increase in their payrolls. Extraction technology advancements will lead to more international flights and the creation of more jobs. The U.S. is predicted to dominate the economy and the global oil market.
Talos Energy is a domestic oil producer. It is focused on offshore oil exploration and production in the Gulf of Mexico. The company has more than 33,000 square miles of proprietary extraction data and its team of experts has worked in the region for decades. Talos supports local organizations and charities.
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Talos Energy is an oil company located in Texas. The company expanded its assets after merging with Stone energy. Duncan, the CEO of the multi-billion globally recognized company, signed the deal to acquire the business venture during the Hurricane Harvey disaster that struck his hometown of Kingwood, Texas located in the north of the Houston. The agreement of owning the stake was struck at his parent’s dining room. The acquisition led to the emergence of Talos Energy.
Despite the advantages that came with the merging of the two conglomerates, there was also a possibility of unforeseen circumstances that trailed Talos Energy as well. Merging with Stone Energy Company listed Talos Energy as a public limited company automatically without going through the long process that converts a private entity into a public body.
Some of the risks were the possibility of a spillover leading to the loss of millions of money. The company Chief Executive Officer who was brought up in different cultures. Growing up in Egypt, Florida, and Texas, he is a New Yorker in lifestyle. The crisis played a huge role in ensuring that the deal was finalized as planned. Therefore, crisis formed the right opportunity for the merger. Currently, the biggest asset owned by Talos Energy is known as the Phoenix field (previously referred to as Typhoon field), about 170 miles south of New Orleans. The platform of half a dozen oil wells were drilled by Chevron. Unfortunately, the platform was destroyed by Hurricane Rita in 2005.
Therefore, the typhoon platform was taken up by Talos energy, and currently, it produces about 16,000 barrels each day and loads the oil into a specially designed ship for transportation. The ship is referred to as the Helix Producer. The forecast shows more discoveries of additional reservoirs 3,000 feet deeper than the old wells. The most important assets that were inherited by Talos from Stone energy was the Pompano Platform the was bought from BP for a whopping 200 million dollars together with other assets for drilling. The existing platform makes it easier for the business organization to expand faster.
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