1. Libya to resume oil production.
Until last week, Libya was holding back up to 160,000 barrels per day (bpd) of supply, but now disputes have been resolved and production will resume. Going forward Libya's National Oil Corporation (NOC) and German oil and gas company Wintershall have an arrangement that will allow the German company to tap into oil reserves in Eastern Libya. This should add nearly 200,000 bpd to the market almost immediately, but they are targeting to get up to 1 million bpd by the end of July. This new agreement is another blow to OPEC’s efforts to decrease supply.
2. Oil and gas IPO’s dip with oil prices.
When oil meandered over $50 a barrel, oil and gas initial public offerings (IPO’s) started picking up as well. Unfortunately, the resurgence didn’t last long. Now that oil is back under $50 a barrel, most Energy companies looking to go public are putting plans on hold as they wait for the market to recover. Energy stocks typically account for nearly one-tenth of all IPO’s, but as long as oil is under $50 a barrel you shouldn’t expect to see much activity.
3. EQT Corp to acquire Rice Energy for $6.7B.
Pittsburgh-based EQT Corp. announced today that it has reached a deal to acquire fellow Pennsylvania shales gas company Rice Energy. EQT will pay in cash and stock worth nearly $6.7 billion, and this acquisition will increase EQT’s footprint in Pennsylvania, Ohio and West Virginia to approximately 1.5 million acres. Regarding the acquisition, EQT CEO Steve Schlotterbeck said, "This transaction brings together two of the top Marcellus and Utica producers to form a natural gas operating position that will be unmatched in the industry." The deal is expected to be finalized later this year.