GHP Houston-The Woodlands-Sugar Land Metro Employment Report

July 21, 2017
The Houston-The Woodlands-Sugar Land metro area created 10,700 jobs in June and 56,100 over the previous 12 months, according to data released today by the Texas Workforce Commission. The monthly job gain was on par with the region’s 20-year average of 11,000 jobs added for a June. The 12-month job growth was well above the 20-year average of 48,300 jobs. Houston’s total nonfarm payroll employment now stands at 3,058,900, a new high for the metro.

Full report:

http://www.houston.org/pdf/research/narratives/Employment/Employment_Update.pdf

Signal: America First, imaginary bears, and the invasion of Fiji

Eurasia Group’s Signal Newsletter:

Source: Signal: America First, imaginary bears, and the invasion of Fiji

IMF Sees 2017 Saudi Growth ‘Close to Zero’ on Oil Prices, Cuts – Bloomberg

Saudi Arabia’s economy will stall this year with growth “close to zero” due to lower oil revenue, the International Monetary Fund said.The fund lowered its 2017 growth forecast to 0.1 percent from 0.4 percent, citing OPEC production cuts, uncertainty over oil prices and the structural reforms the country is undertaking to reduce its reliance on crude, it said in a statement on Friday concluding its Article IV consultation. The IMF also lowered its non-oil growth projection to 1.7 percent from 2.1 percent — compared with actual growth of 0.2 percent in 2016.

Source: IMF Sees 2017 Saudi Growth ‘Close to Zero’ on Oil Prices, Cuts – Bloomberg

Mexico Delays Next Oil Auction to Let Huge New Find Sink In – Bloomberg 2 over billion barrel finds announced on same day

Mexico will delay its next offshore oilfield auctions by a month, giving international bidders more time to evaluate recent major crude discoveries that highlight the potential value of the assets.A new billion-barrel find announced last week “confirms that the Mexican side of the Gulf of Mexico is very prolific,” said Juan Carlos Zepeda, Mexico’s chief oil regulator in an interview Friday. “International and national interest is awakening.”July 12 marked perhaps the single most successful day for the Mexico oil industry since the government ended Petroleos Mexicanos’s government-owned production monopoly in 2014. Premier Oil Plc, Sierra Oil & Gas and Talos Energy LLC reported a reservoir with an estimated 1.4 billion to 2 billion barrels of oil in the southern Gulf of Mexico. On the same day, Italian producer Eni Spa said its March find in Mexico’s offshore waters also contains the equivalent of as much as 1 billion barrels, and Mexico successfully auctioned 21 of 24 onshore fields to private companies.

Source: Mexico Delays Next Oil Auction to Let Huge New Find Sink In – Bloomberg

Higher demand is needed to end oil glut – but will it come? – Houston Chronicle

At various points over the past year, hopes have risen that production cuts by OPEC would succeed in draining the world’s oil inventories enough to bring prices into the $55-per-barrel range needed for U.S. producers to really get moving again.Those hopes have been dashed consistently, with prices lingering below $50, and now economists at the Dallas Federal Reserve say that the supply glut is likely to continue far into next year. That’s bad news for Houston’s oil-bound economy, which may not see the strong recovery that some have anticipated.The culprits in all this are U.S. shale drillers. Over the past year or so, they have more than doubled the rig count, bringing so much supply online that the market has yet to tighten enough to force prices up – even as the OPEC-led coalition of oil producers extends output cuts of 1.8 million barrels per day into next year. (Robust oil shipments from Libya and Nigeria aren’t helping, either.)

Source: Higher demand is needed to end oil glut – but will it come? – Houston Chronicle

EIA Drilling Productivity Report Released

https://www.eia.gov/petroleum/drilling/

 

Former $2 billion private equity fund now nearly worthless: WSJ

Wells Fargo (WFC.N) and a number of other lenders are negotiating to take control of a hedge fund previously valued at more than $2 billion that is now worth close to nothing, according to a report from the Wall Street Journal.EnerVest Ltd., a Houston private equity firm that focuses on energy investments, manages the private equity fund that focused on oil investments. The fund will leave clients, including major pensions, endowments and charitable foundations, with at most pennies on the dollar, WSJ reported.The firm raised and started investing money beginning in 2013 when oil was trading at around $90 a barrel and added $1.3 billion of borrowed money to boost its buying power. West Texas Intermediate crude prices closed at $46.54 a barrel on Friday.

Source: Former $2 billion private equity fund now nearly worthless: WSJ

OPEC Quietly Opened the Taps in June

OPEC’s resolve to stick to promised supply cuts stumbled in June, the sixth month in its long-haul gambit to erode a world oil glut and boost prices. Total compliance within OPEC slipped below 100 percent, back to levels seen in February, dragged down by rising production in Angola, Iraq and Saudi Arabia. Meanwhile, a parallel effort by non-OPEC nations including Russia improved.

Source: OPEC Quietly Opened the Taps in June

Mexico Oil Privatization Pays Off With Billion+ – Barrel Find – Bloomberg

A consortium of Premier Oil Plc, Sierra Oil & Gas S de RL de CV and Talos Energy LLC made the discovery in the shallow waters of the southern Gulf of Mexico just two years after winning the exploration license. It’s the first new find by a private company in the country in almost 80 years, according to consultant Wood Mackenzie Ltd., possible only after the government ended the monopoly of state-run Petroleos Mexicanos.The Zama discovery “is the most important achievement so far of Mexico’s energy reform,” Pablo Medina, the senior upstream analyst for Latin America at Wood Mackenzie, said by email. “It is one of the 15 largest shallow-water fields discovered globally in the past 20 years.”

Source: Mexico Oil Privatization Pays Off With Billion-Barrel Find – Bloomberg

Talos reports large Gulf of Mexico discovery | The Oil & Gas Year

Talos Energy announced on Wednesday that it, along with partners Sierra Oil & Gas and Premier Oil, had made a significant discovery offshore Mexico through the Zama-1 wildcat well.Initial tests have indicated that Zama could hold up to 1.4 billion-2 billion barrels of original oil in place. The reservoir is thought to contain mainly light oil, with gravities of 28-30 degrees API, in addition to associated gas.“This is both a historic and significant discovery,” CEO Tim Duncan said in a statement.

Source: Talos reports large Gulf of Mexico discovery | The Oil & Gas Year