1. Hurricane Energy announces discovery of largest undeveloped oil field in the UK.
Hurricane Energy’s stock soared 6% on news that the firm has located “The largest undeveloped discovery on the U.K. Continental Shelf", according to Hurricane Chief Executive Robert Trice. However, there will be a significant investment required to start producing oil. Initial estimates are in the neighborhood of $400 million, and after Hurricane raises the funds, they plan to start producing oil from the field in 2019. This is great news for the UK and North Sea oil industry. Like many in the oil industry they have struggled over the past few years due to the collapse in oil prices.
2. Mexico locks in their oil prices for the next year.
Mexico is the world’s 11th-largest oil producer and has created the world’s largest commodities hedging program. Last year they spent $1 billion buying put options to secure prices for its oil exports, and this year they are setting aside nearly $1 billion more to guarantee oil revenue at $42 a barrel.
Mexican Deputy Finance Minister Vanessa Rubio announced their plans late last week and confirmed their plans to protect their exports and stabilize their currency. Mexico has taken an aggressive approach on many fronts to strengthen its peso after it plummeted to record lows last year and early this year.
3. The Baker Hughes US oil rig count increased again last week for the 10th consecutive week.
Over the last year, OPEC countries and Russia have tried their best to keep oil prices high by mutually agreeing to cut production and supply; however, America’s energy industry and free markets have stifled these efforts. US rig count are up to 809 operating rigs, a 20 rig increase from the previous week, and an incredible 345 rig increase in the past 12 months.