Oceaneering International, Inc. (NYSE: OII) reports record earnings for the third quarter ended September 30, 2014. On revenue of $973.1 million, Oceaneering generated net income of $124.3 million, or $1.16 per share.

For the third quarter of 2013, Oceaneering reported revenue of $853.3 million and net income of $104.4 million, or $0.96 per share. For the second quarter of 2014, Oceaneering reported revenue of $927.4 million and net income of $110.3 million, or $1.02 per share.

Sequentially, quarterly EPS was 14% higher on operating income improvements from all business segments, led by Remotely Operated Vehicles (ROV). Year over year, quarterly EPS increased by 21% on the strength of operating income improvements from Subsea Products and ROV. EPS for the first nine months of 2014 was up 18% over the comparable period in 2013.

M. Kevin McEvoy, President and Chief Executive Officer, stated, "We achieved record EPS for the quarter, demonstrating the high level of demand we experienced for our subsea services and products. Our results were highlighted by all-time high operating income from our ROV and Subsea Products businesses.

"We remain on track to achieve record EPS for 2014. For the fourth quarter, we are projecting EPS of $0.94 to $0.99. Given this outlook and our year-to-date performance, we are narrowing our 2014 EPS guidance range to $3.95 to $4.00 from $3.95 to $4.05.

"Compared to the second quarter of 2014, ROV operating income increased on higher global demand to support drilling and vessel-based projects and an improvement in operating margin. Our ROV days on hire for the quarter increased to a record high of over 25,200 and our operating margin improved to 31% from 28% due largely to a change in geographic operations mix, resulting in a higher average revenue per day-on-hire. During the quarter we put 14 new vehicles into service and retired five. At the end of September, we had 332 vehicles in our fleet, compared to 302 one year ago.

"Subsea Products operating income was higher due to increased demand for tooling and subsea work systems. Products backlog at quarter-end was $768 million, compared to our June 30 backlog of $850 million and $857 million one year ago.

"Subsea Projects operating income increased due to a seasonal uptick in U.S. Gulf of Mexico demand for diving services. Asset Integrity operating income improved due to activity increases in the United Kingdom and Australia, and a $2.5 million gain on the sale of a non-core operation that was part of our AGR FO acquisition in 2011. Advanced Technologies income increased due to higher profitability on vessel maintenance and engineering services for the U.S. Navy.

"During the third quarter, we repurchased 3.0 million shares of our common stock at a cost of $201 million. Year to date, we have repurchased 3.5 million shares at a cost of $237 million. The decision to repurchase our shares reflects our belief that Oceaneering's stock has been undervalued. It also underscores our willingness to return cash to our shareholders and confidence in Oceaneering's financial strength and future business prospects. We have 5.4 million shares remaining under our current Board of Directors share repurchase authorization. Year to date, we have spent $318 million on share repurchases and cash dividends.

"As previously announced, we reached agreement for $800 million of committed bank facilities, consisting of a $500 million five-year revolver and a $300 million three-year delayed-draw term loan, to provide us with increased financial flexibility.

"We are initiating 2015 EPS guidance with a range of $4.10 to $4.50, based on an average of 105.7 million diluted shares. While we are facing widely publicized concerns regarding the future of deepwater activity, our 2015 guidance is based on assumptions that service and product demand to perform life-of-field activities and develop new fields will be higher than in 2014 and global floating rig demand will be about the same.

"Our liquidity and projected cash flow provide us with resources to invest in Oceaneering's growth and return cash to our shareholders, and we intend to continue doing so. We generated EBITDA of $241 million during the quarter and $645 million year to date. For 2014 and 2015, we anticipate generating EBITDA of at least $845 million and $880 million, respectively.

"Compared to 2014, we anticipate all of our business segments will have higher operating income in 2015, notably: ROV on greater service demand to support drilling and vessel-based projects; Subsea Products on the strength of higher demand for tooling and installation and workover control system services; and Subsea Projects on growth in deepwater intervention service activity in the GOM and diving in the GOM and offshore Angola.

"For 2015 and beyond, we believe that the oil and gas industry will continue its investment in deepwater projects. Deepwater remains one of the best frontiers for adding large hydrocarbon reserves with high production flow rates at relatively low finding and development costs. With our existing assets and opportunities to add new assets, we are well positioned to supply a wide range of the services and products required to safely support the deepwater efforts of our customers."

Former RAF aircrew, Colin Griffiths (photo), is joining OPITO International as managing director to lead the roll-out of common safety training standards across the global oil and gas industry.

Mr. Griffiths will take up his new appointment, based in Dubai, at the end of October 2014, replacing out-going managing director Ian Laing who is retiring after seven years in the role.

Funded by industry, for industry, OPITO has a proven track-record in responding to the global oil and gas industry's training needs. Having successfully designed and monitored safety training standards in the North Sea for many years, OPITO created an international organizational structure to support its global roll-out of safety standards and workforce development. Today around 250,000 people in 40 countries are training to those standards every year, helping improve safety and competency in oil and gas.

Joining OPITO from Talisman Sinopec in Aberdeen, where he was operations superintendent responsible for day-to-day operations of two North Sea assets, Mr Griffiths will lead OPITO International's drive for the adoption of common global safety training standards.

Having trained as an electrical engineer with British Steel, Mr. Griffiths spent eight years front line flying with the RAF where he was responsible for conducting electronic surveillance as a member of the Nimrod crew, which carried out search and rescue and anti-terrorist missions. He entered the oil and gas industry in 1990 as an engineering contractor for Shell, moving into projects and operations before joining Talisman Sinopec in 2012.

Commenting on his new role, Mr. Griffiths said: "The success of the oil and gas industry is on achieving the right balance between optimizing production and ensuring the safety of our people. Safety therefore features in everything we do. Wherever we are in the world, we need to set standards in training and competency before we send people offshore or into other hazardous environments. I am passionate about and totally motivated by getting the safety piece right which is why I am both privileged and excited to be taking up this international role with OPITO – the standard-bearer for our industry."

Mr. Griffiths believes there are significant parallels between the RAF and the oil and gas industry. He said: "The Nimrod was the workhorse of the RAF; it had performed with distinction in every major conflict since 1969 with the assumption that it would always be a safe platform, but in 2006 over Afghanistan we lost an aircraft and its entire crew, not through enemy action but due to a poorly constructed safety case and organizational failings. This was a tragedy for those involved, their families and the RAF. Having known every member of that crew, I am fully aware of the impact it has on everyone, in the same way that those affected by recent offshore fatal incidents, whether it be on-board platforms or helicopters, suffered and continue to suffer.

"Ageing offshore assets and creeping complacency in oil and gas can have catastrophic repercussions. Too often people are focused on the task rather than on the safety which is what causes accidents. OPITO aims to make sure that every oil and gas worker anywhere in the world is totally focused on safety with the right training and competence to carry out the task."

Group chief executive of OPITO, David Doig, said: "OPITO's proven track record internationally is in safe hands with Colin. His passion for the challenges ahead of us as we seek to embed the OPITO standards framework in every oil and gas province around the world, will ensure we continue to effectively engage with employers, government and regulators and deliver high-value long-term change in relation to safety."

Merakes is the first exploration well drilled by Eni in the East Sepinggan Block, which was assigned to the Company in 2012 following an International Bid Round.

Eni has made an important gas finding in the Merakes exploration prospect, in the East Sepinggan Block, where Eni is operator with a 100% stake. The Block is located in the offshore East Kalimantan (Borneo), 170 kilometers south of the Bontang LNG Plant and 35 kilometers from the offshore Jangkrik field, also operated by Eni.

The finding was made through the Merakes 1 well which was drilled at a water depth of 1,372 meters and reached a total depth of 2,640 meters. The well encountered a significant accumulation of gas in the lower Pliocene clastic sequence. Merakes has crossed a hydrocarbon column of 60 meters in high quality sandstones.

Merakes is the first exploration well drilled by Eni in the East Sepinggan Block, which was assigned to the Company in 2012 following an International Bid Round. Merakes finding potential has been preliminary estimated to be 1,3 Trillion cubic feet (Tcf) of gas in place. The finding has further upside that will be assessed with a delineation campaign.

Claudio Descalzi, Eni's CEO said: "This new success further implements the Company's growth strategy in the Pacific Basin where, in addition to its presence in Indonesia, Australia and China, Eni recently signed new exploration contracts in Vietnam, Myanmar and China. Merakes finding is a significant one as it strengthens our position as operator in Indonesia. Moreover thanks to its proximity to the Jangkrik field, which is currently under development, this new gas finding could supply in the future additional gas volumes to the Bontang LNG plant. This new achievement proves once more the effectiveness of Eni's strategic approach to exploration, which is based on operating with elevated stakes in exploration phase to better valorize exploration success"

Eni has been operating in Indonesia since 2001 and currently has a large portfolio of assets in exploration, production and development which have an increasing importance in contributing to the overall Company's production growth. The company holds working interests in fourteen permits and is operator in ten of them. The exploration activities are located in acreage in the Tarakan and Kutei Basins, offshore Kalimantan, north of Sumatra, West Timor and West Papua. In the Kutei Basin in early 2014 Eni started the development activities of the deep offshore Jangkrik gas field in the Muara Bakau PSC. Eni also holds a participating interest in the development of significant gas reserves located in the Ganal and Rapak PSCs. Production activities are located in the Mahakam River Delta, East Kalimantan through the participated Company VICO Ltd (Eni 50%, BP 50%) operator of the Sanga Sanga PSC that provides an average equity production of 17,000 barrels of oil equivalent per day.

NYC-based PIRA Energy Group believes that cyclical strengthening is currently underway in the global economy with the U.S. in a better position to support global growth. In the U.S., stock excess modestly widens. In Japan, crude runs ease, but crude stocks draw. Specifically, PIRA's analysis of the oil market fundamentals has revealed the following:

World Oil Market Forecast
Cyclical strengthening is currently underway in the global economy with the U.S. in a better position to support global growth. OPEC cannot rebalance oil markets because the surplus is too large. Even with PIRA's assumed substantial OPEC cuts at the upcoming November 27 meeting, supply will be over 1 MMB/D higher than demand in 2015. Oil markets will have to be rebalanced via price. The market will see greater contango but prices in the front of the market will inevitably be anchored by bullish medium term oil supply/demand balances.

U.S. Stock Excess Modestly Widens
This past week's inventory increase was slightly larger than the increase last year in the same week, widening the year-on-year inventory. Crude stocks still remain 2.1 million barrels below last year, middle distillate nearly 1 million barrels below, and gasoline 11.1 million barrels lower. Gasoline stocks are relatively low, but with resupply expected from higher runs and imports, gasoline has recently taken a drubbing. Not surprisingly, the one major product category showing a large surplus to last year's inventory is "other" products, which is mostly NGLs.

Japanese Crude Runs Ease, But Crude Stocks Draw
Crude runs eased, while crude imports declined sufficiently to draw crude stocks moderately. Finished product stocks resumed building with much of it being kerosene. Gasoline demand was modestly higher, and stocks posted a small draw. Gasoil demand was surprisingly weak, but lower yield tempered the stock build. Kerosene demand continued to run at seasonally low levels with higher yield, which boosted the stock build rate to a strong 132 MB/D. Refining margins remain soft with all the major product cracks, except for middle distillates (kero and gasoil) weakening.

The Sensitivity of Shale (and Other) Oil Production to Lower Price
We expect shale oil production to be relatively sensitive to a drop in oil prices, but the response will not occur immediately. A price lower than $80 on an LLS basis will reduce production, both due to the deterioration of the economics of the key shale plays as well as the reduction of cash flows and borrowing capability for the operators. However, the production impact during the first year will emerge slowly, as existing hedges, rig obligations and high-grading of drilling will initially temper the effect of lower prices. In the long-term, these impacts will grow substantially although lower activity levels should also eventually lead to lower costs, partially offsetting the price effect.

U.S. NGL Complex Spirals Lower
December Mont Belvieu propane futures continued to spiral lower, falling 5.4% to $0.86/gal the lowest price since July 2014. Ever increasing stocks and challenging export economics continue to complicate matters for the fuel/feedstock. Midcontinent propane markets were slightly better, only 3.4% lower, widening the Conway premium to 6.5¢/gal – the highest this season. Next week, falling crude prices will continue to drag on NGL prices while closed spot arbitrage economics will hinder exports to Europe and Asia.

U.S. Production Margins Improved After Declining for Eight Straight Weeks
The cash margins for U.S. ethanol manufacture rebounded the week ending October 17 as the market tightened. Ethanol was $1.78 per gallon in Chicago on Friday, up 21.9% from its $1.46 bottom on October 2.

U.S. Ethanol Stocks Fall to Seven-Week Low
U.S. ethanol inventories declined for three consecutive weeks, dropping to a seven-week low 17.9 million barrels. Ethanol production rebounded to 896 MB/D the week ending October 17, up from 885 MB/D during the preceding week.

The information above is part of PIRA Energy Group's weekly Energy Market Recap - which alerts readers to PIRA's current analysis of energy markets around the world as well as the key economic and political factors driving those markets.

HB Rentals, a Superior Energy Services company specializing in onsite accommodation services, has announced the official opening of its new service location in Ciudad del Carmen, Mexico.

The new location supports HB's full range of service offerings that include accommodation modules and operating essentials such as water, sewage, power, lighting and communications systems. The addition of this facility allows the company to respond more quickly to the needs of its Mexico-based clients while reducing project expenses by eliminating importation and transportation costs.

A key client, Paragon Offshore, which historically works with HB out of Houston, will now receive local support and enhanced service at its Ciudad del Carmen operations.

HB Rentals has been active in Mexico's offshore rentals market for 15 years and has accommodated 1,000 personnel on board (POB) at various times, displaying its ability to support market needs. Its accommodation fleet in Mexico provides beds, galleys, diners, laundries, offices, recreation rooms and offshore service modules to various offshore projects.

"The offshore Mexico market represents a significant growth opportunity for HB Rentals as activity is expected to increase due to recent legislation," said Deidre Toups, president, HB Rentals. "HB has a ground floor position for this expansion with its strong client base of construction, drilling and vessel companies.

"By offering more rapid response rates for module delivery and onsite services, our Mexico-based customers will be less affected by non-productive downtime in their remote operating locations," said Toups. "HB Rentals is committed to providing the highest standards of quality and service to the energy industry, and the addition of the Ciudad del Carmen facility is no exception."

• A high quality oil net pay of over 150 meters thick has been discovered.

• The well, named León, is located 352 kilometers offshore the Louisiana coast in ultra-deep waters in the United States' Gulf of Mexico.

• With a total depth of 9,684 meters, it is one of the deepest wells operated by Repsol, which has a 60% stake in this license.

• The Gulf of Mexico is amongst the world's most profitable and promising deep water plays. Repsol holds 119 blocks in the area.

• The United States already represents around 10% of the group's total production.

• In 2009 Repsol made one the most important discoveries in this region, Buckskin, 50 km from León, which is in the final stages of evaluation prior to its development.

• With the León discovery Repsol continues to strengthen its position in the United States, which is one of the company's key strategic areas.

Repsol has made a new discovery of high quality oil in the United States' Gulf of Mexico. The find was made 352 kilometers from the Louisiana coast in an ultra-deep water well named León, located in the Keathley Canyon 642 block.

Repsol is the operator of the discovering consortium. The well found more than 150 meters of net oil pay within a column of over 400 meters. The well was drilled in water 1,865 meters deep, and reached a total depth of 9,684 meters, making it one of the deepest wells operated by the company.

The company has a long experience in deep-water well drilling and is internationally recognized for its technological capacity with cutting-edge projects in hydrocarbon exploration and production such as the Kaleidoscope and Sherlock projects.

Repsol has a 60% participation in the license, with Colombia's Ecopetrol holding the remaining 40%.

The US Gulf of Mexico is amongst the world's most profitable and promising deep water plays. Repsol holds 119 blocks in this prolific area together with a share in the Shenzi field, which boasts 16 wells in production connected to two platforms.

In 2009, Repsol had already made one of its most important discoveries in this region. The Buckskin well, 50 kilometers from León, was, like the León discovery, one of the deepest wells operated by the company. The resource potential being carried out by the current operator will lead to a development plan for this and other fields in the near future.

Repsol in the United States

With the León discovery Repsol continues to strengthen its position in the United States, which is one of the company's key strategic regions.

Repsol has mining rights in the country over blocks located in the Gulf of Mexico (Green Canyon, Alaminos Canyon, Atwater Valley, Garden Banks, Keathley Canyon, Mississippi Canyon and Walker Ridge) and Alaska. Additionally, the company is developing unconventional resources in the Mississippian Lime play.

With the addition of new production during 2014, the United States already represents almost 10% of the company's total hydrocarbons output. Repsol has its second largest corporate headquarters in Houston and employs more than 600 people in the United States.

VAALCO Energy, Inc. (NYSE: EGY) has announced that the Company has entered into the Subsequent Exploration Phase ("SEP") on Block 5 offshore Angola together with its working interest partner, Sonangol P&P, as provided for in the Production Sharing Agreement signed in 2006 with the Republic of Angola.

The SEP extends the exploration license for an additional three year period such that the new expiry date for exploration activities is November 30, 2017. The SEP requires the Company and its partner to acquire a 3D seismic program covering six hundred square kilometers and to drill two additional exploration wells. The seismic obligation has been satisfied with a seismic program already completed covering 1,058 square kilometers over the outboard portion of the block.

By entering the SEP, the Company is now required to drill a total of four exploration wells during the exploration extension period. The four well obligation includes the two well commitment under the primary exploration period that carries over to the SEP period. A ten million dollar assessment (five million dollars net to VAALCO) applies to each of the four commitment exploration wells, if any, that remain undrilled at the end of the exploration period in 2017.

As previously announced, the Company has contracted for the Transocean "Celtic Sea" semi-submersible rig to drill the first exploration well, the post-salt, Kindele-1 well. The Kindele well is targeting the Mucanzo sand (Pinda group) with a planned total depth of 2,250 meters in a water depth of 101 meters. Gross unrisked recoverable resources are estimated to be between 20-49 million barrels. The rig is currently estimated to be on location in mid-December 2014.
The decision to enter the SEP was made in part to remove uncertainty that the primary term of the exploration license would be extended by the Republic of Angola before the November 30, 2014 expiration date.

Steve Guidry, Chairman and CEO, commented, "We believe entering into the SEP is a sound strategy for the Company. Although the SEP comes with additional commitments, we believe this is a coveted block with potential in the deep syn-rift and sag play. The SEP allows VAALCO and its partner to properly assess the results of the current seismic reprocessing that is being merged with previously licensed seismic data through pre-stack depth migration. This will help us determine the best opportunities in the pre-salt horizons. The action we took to enter into the SEP removes the uncertainty of an exploration license extension and allows us to focus on our exploration activities on the block."

New Sea Axe design: a 40-metre Fast Crew Supplier

Naviera Integral of Mexico is the launching customer of Damen's new Sea Axe Fast Crew Supply vessel, the FCS 4008. President of Naviera Integral, Juan Pablo Vega is pictured at the official signing ceremony for the two Damen FCS 4008 vessels at the Offshore Energy Exhibition in Amsterdam.

A leading company in offshore transport and supply services with a fleet of 35 vessels, Naviera Integral has already been a customer of Damen since the late nineties, operating more than 20 Damen vessels. The Mexican company was also a pioneer of the Damen flagship Axe Bow vessel, the 5009.

Mr Vega explains: "We choose to invest in Damen vessels because of their quality and this is combined with a very good delivery time, plus Damen provides excellent after sales services and offers creative solutions for financing."

100 passengers
Damen and Naviera Integral have worked very closely on developing the new FCS 4008, which is mainly focused on passenger transport rather than a combination of passengers and cargo. "Naviera Integral is having an increasing focus on passenger transportation and this new 42m vessel has capacity for 100 people."

Naviera Integral's vast experience of operating the Sea Axe 5009 in the Gulf of Mexico has been taken on board with the design of the new FCS 4008, with any suggestions for improvements incorporated in the new FCS type. The vessel combines a steel hull with an aluminium superstructure, which allows the vessel to combine strength with speed.

"Damen Sea Axe vessels have excellent seakeeping characteristics and our client PEMEX sees the benefits of this. The vessels are much more comfortable for the crew and they arrive in better shape to carry out their work. The FCS 4008 is also very fuel efficient, consuming at least 10% less than conventional vessels, which is an important consideration," Mr Vega says.

Naviera Integral's two new vessels are due for delivery in 2016. Mr Vega adds: "We see many opportunities in the Gulf of Mexico given the energy reform, therefore we see these investments as preparing for the future. And we look forward to working with Damen."

Bibby Offshore's Houston-based division, Bibby Subsea, has announced the investment in a custom-built office and key appointment as a result of continued growth in the region.

The new premises, due for completion in November 2014, consist of a 6,300 sq. ft. office space and 2,000 sq. ft. warehouse and workshop area, which will allow for further team expansion. A recruitment drive is planned to increase the number of Bibby Subsea staff in the region by more than 70, both onshore and offshore, throughout 2015.

Since its inception in August 2013, Bibby Subsea has experienced significant client demand for its service offering, which continues to increase across North America. The new purpose-built facility, located in the Houston Energy Corridor, is set to strengthen the business's presence and enhance its on-the-ground support for clients in the region.

Andrew Duncan, President and Managing Director of Bibby Subsea, said: "The new office is located in the heart of the Energy Corridor, a hub for oil and gas operations in Houston, providing an ideal position to deliver our wide range of subsea capabilities to the North American market."

Robert Richmond has been appointed as Vessel Operations/Project Manager to help facilitate this growth, bringing to the business 33 years' experience within the marine and subsea industries. For the last six years Robert has been working for a major international subsea company based in Houston, where laterally he was Subsea Operations Director. With a career that has seen him work across the world, Robert will help manage and develop Bibby Subsea's operational capability.

Mr Duncan continued: "The opening of a new office and Rob's appointment are exciting new developments, allowing for future growth and team expansion. Following a number of successful contract wins in the region, we are expanding rapidly and have outgrown our current Houston facility.

"Increasing our operations demonstrates a commitment to the region and enables the team to continue to offer our clients a high quality service on each project" concluded Mr Duncan.

Robert Richmond, New Vessel Operations/Project Manager at Bibby Subsea, said: "I am delighted to join the team at an exciting time of international growth and expansion. Bibby Subsea's reputation as an innovative, leader within the subsea market was a real draw and I am looking forward to helping drive its international growth forward in my new role."

Bibby Subsea aims to deliver a diverse range of subsea construction projects for operators worldwide. Services include project management and engineering, innovative remotely operated vehicle support vessels (ROVSV) and survey capabilities, diverless intervention, advanced remote systems and tooling packages, in-house survey and data processing, subsea construction support services, and inspection, repair and maintenance (IRM).

Bibby Subsea and Bibby Offshore has grown from 10 employees in 2003 to now employing more than 1,450 people onshore and offshore worldwide, with offices in Aberdeen, Liverpool, Newcastle, Singapore, Trinidad, Houston, and Norway. The company has an international fleet of seven subsea support vessels and 17 ROVs, and will continue to add to its fleet to meet demand.

Bibby Subsea aims to further establish itself within the US energy market by showcasing its services and capabilities at the Deepwater Operations Conference and Exhibition from the 4-6 November, stand 307, at the Moody Gardens Hotel & Convention Center, Galveston, Texas USA.

Hess Corporation (NYSE:HES) announced on Wednesday that together with its project co-owners it will proceed with the development of Stampede, an oil and gas project operated by Hess in the deepwater Gulf of Mexico.

Discovered in 2005, the Stampede Field is located approximately 115 miles south of Fourchon, La., in the Gulf of Mexico (Green Canyon Blocks 468, 511 and 512). The field is located in approximately 3,500 feet of water, with a reservoir depth of 30,000 feet. The plan initially calls for six subsea production wells and four water injection wells from two subsea drill centers tied back to a Tension Leg Platform (TLP). A two-rig drilling program is planned with the first rig commencing operations in the fourth quarter of 2015. First production is expected in 2018.

Gross topsides processing capacity for the project is approximately 80,000 barrels of oil per day and 100,000 barrels of water injection capacity per day. Total estimated recoverable resources for Stampede are estimated in the range of 300–350 million barrels of oil equivalent. The development is estimated to cost approximately $6 billion.

Hess has a 25% working interest and is operator. Union Oil Company of California, a Chevron subsidiary, Statoil and Nexen Petroleum Offshore U.S.A. Inc. each have a 25% working interest.

Hess Corporation is a leading global independent energy company engaged in the exploration

Platts – U.S. oil prices would have to fall another 20% or so before one of the leading American shale oil producers, Continental Resources, would cut back significantly on its operations, the company's CEO said Sunday on Platts Energy Week.

"We're hurt, but we're not to the point we're shutting down," Harold Hamm said. "And we're not getting close to that, yet, within a pretty good measurable amount, you know, $15 or $20. And certainly that's the case in the Bakken."

West Texas Intermediate (WTI) crude oil for December delivery fell 90 cents last week, to close at $81.01 per barrel (/b) Friday.

Hamm, whose company is the second-largest producer in the Bakken, said he was optimistic that the oil price decline would reverse soon.

"I've thought that we ought to be in the $90 range for sure," he said. "And I think the price will quickly come back to that."

Rising demand in China, primarily for transportation, would remain a key driver of world oil prices, he added.

Hamm said he preferred not to talk about the point at which oil prices would cause sharp declines in U.S. drilling activity.

"I don't like to go there, talking about where would you stop," he said. "That gets to be putting more fear into the market, if you will, and panic. And that's certainly not anything we should be talking about."

Nevertheless, such speculation has been prevalent among analysts following the oil price decline. For example, Standard & Poor's Rating Services last week said a reduction in U.S. shale drilling is likely if WTI prices fall below $80/b. S&P, like Platts, is part of McGraw Hill Financial.

Still, Hamm acknowledged that Continental Resources and other companies have begun to scale back some activities in response to the price decline.

"Certainly, we've had a serious reduction in price, losing some $20/b over these last few weeks," he said. "So, that's a pretty good pull-back. And certainly, people will probably start adjusting right there on projects that they can push back or don't have to do for a while. And our company has done the same thing, and others have."

But Hamm said the impacts vary depending on the locations of the wells, the financial needs of individual companies and other factors. The Bakken shale, he added, "probably lends itself to lower prices" more than other shale reserves.

Other Program Highlights

Also Sunday, Brigham McCown, a former head of the U.S. Pipeline and Hazardous Materials Safety Administration, shared some of the infrastructure challenges facing the U.S. oil and natural gas sector.

During another segment, Murray Energy CEO Robert Murray discussed his efforts to help Republicans re-take the U.S. Senate this November amid sentiment that the Obama administration and Democrats in Congress are contributing to the decline of coal.

In "Market Spotlight," Andrew Moore, managing editor of Platts Coal Trader, gave an overview of the myriad factors shaping the U.S. coal market.

Platts Energy Week airs at 8 a.m. U.S. Eastern time Sunday mornings on WU.S.A9 in greater Washington, D.C., and in Houston on KUHT, a PBS affiliate, as well as on other PBS stations in cities throughout the U.S., including Anchorage, Billings, Houston, Juneau, Las Vegas, Minneapolis, San Francisco, Raleigh and Wichita. For online viewing, the program is accessible at www.plattstv.com.

Willard Marine, Inc. (WMI), a leading manufacturer of composite and aluminum boats for more than 50 years, has been selected through a competitive solicitation process to supply a demonstration model of a new, advanced combatant craft for the U.S. Navy under an SBIR contract modification awarded to Structural Composites, Inc.

Under the contract, WMI will design, construct and test a fleet-ready version of an advanced combatant craft incorporating foam/fiberglass extrusion technology developed by Structural Composites. The boat will be based on WMI's standard U.S. Navy MK 3 RIB with a lightweight Steyr diesel engine and sterndrive propulsion.

The new, framed construction technique will eliminate the need for a traditional foam-core and fiberglass sandwich hull, resulting in a substantial reduction in overall boat weight with no sacrifice in strength and durability. The deck frames will not be connected directly to the hull beams, providing improved shock mitigation when operating in rough seas. The boat will also feature Structural Composites' new Co-Cure resin and coating technology that has superior cracking resistance for demanding naval applications.

Ulrich Gottschling, president and CEO of WMI, said, "Willard Marine has built the most durable military RIBs for the U.S. Navy for more than 20 years, and we are committed to leading improvements through more innovative products, designs and production techniques. By partnering with Structural Composites on this advanced construction method, Willard Marine will potentially improve payload capacities while improving crew comfort, which are critical factors for our customers."

Scott Lewit, president of Structural Composites, said, "This contract modification from the U.S. Navy allows us to integrate our newest composite advances into the recently selected lightweight engine technology from Steyr. The combined benefits of reduced structural and engine weight offer great synergistic benefits."

Aqueos Corporation, a premier subsea services provider for the offshore oil and gas sectors of the Gulf of Mexico and the Pacific West Coast, receives a prestigious award from national publication, EHS Today

This nationally recognized honor awards Aqueos Corporation for being one of "America's Safest Companies". Aqueos was selected for this designation from over three hundred nominated companies from all over the United States, and is the only company in the diving industry to have ever earned this accreditation. Aqueos President and CEO, Ted Roche, states "Since our inception, we have focused our efforts towards being the safest company in our industry."

Roche further commented, "It is an honor that Aqueos is the only company in the diving industry to have ever received this award. This recognition validates the commitment of our employees towards zero-incidents and to continuous improvement."

Aqueos Corporation, with offices in Broussard, LA and Ventura, CA, provides marine construction and specialty subsea services including a complete range of commercial diving, remotely operated vehicles (ROV) and vessel-related services primarily to the offshore oil and gas markets.

Chevron Corporation (NYSE: CVX) has announced a new oil discovery at the Guadalupe prospect in the deepwater U.S. Gulf of Mexico. The Keathley Canyon Block 10 Well No. 1 encountered significant oil pay in the Lower Tertiary Wilcox Sands. The well is located approximately 180 miles off the Louisiana coast in 3,992 feet of water and was drilled to a depth of 30,173 feet.

"The discovery further demonstrates Chevron's exploration capabilities," said George Kirkland, vice chairman and executive vice president, Upstream, Chevron Corporation. "Guadalupe builds on our already strong position in the deepwater U.S. Gulf of Mexico, a core focus area where we expect significant production growth over the next two years."

The Guadalupe well was drilled by Transocean's Discoverer India deepwater drillship.

"The Guadalupe discovery adds momentum to our growing business in North America," said Jay Johnson, senior vice president, Upstream, Chevron Corporation. "Our deepwater exploration and appraisal program continues to unlock important resources in the Gulf of Mexico."

"Chevron subsidiaries are among the top producers and leaseholders in the Gulf of Mexico, averaging net daily production of 143,000 barrels of crude oil, 347 million cubic feet of natural gas, and 15,000 barrels of natural gas liquids during 2013," said Jeff Shellebarger, president, Chevron North America Exploration and Production Company. "The company expects additional Gulf of Mexico production from the Tubular Bells and Jack/St. Malo projects by the end of the year."

Chevron subsidiary Chevron U.S.A., Inc. began drilling the Guadalupe well in June 2014. More tests are being conducted on the discovery well and additional appraisal wells will be needed to determine the extent of the resource.

Chevron U.S.A., Inc., with a 42.5 percent working interest in the prospect, is the operator of the Guadalupe discovery well. Guadalupe co-owners are BP Exploration & Production, Inc. (42.5 percent) and Venari Resources LLC (15 percent).

States and International Oil Companies (IOCs) are banking on the Arctic as a major source of future oil and gas production, but the high costs and risks involved with operations in the area mean that an attractive fiscal regime is essential if developments are to be commercially viable, says an analyst with research and consulting firm GlobalData.

Will Scargill, GlobalData's Upstream Fiscal Analyst, states that Norway's high tax burden poses a challenge to commerciality when compared with Russian, Canadian and US Arctic fiscal regimes, although the country has already made significant progress in Arctic oil and gas development.

Scargill says: "In contrast to Russia, which introduced tax incentives for offshore Arctic developments earlier this year, Norway does not provide special incentives for its oil and gas industry. Norwegian fiscal terms were made even less appealing in May 2013, when the Labour-led government reduced the capital expenditure uplift, allowed over four years, from 30% to 22%.

"This change had a particularly detrimental impact on the potential economics of projects requiring high capital outlay, and the effects are especially visible in the marginal commerciality of Statoil's proposed Johan Castberg project in the Barents Sea. Although the right-wing coalition, which came into power in September 2013, indicated that it may introduce measures to mitigate the effect of the change, no incentives were announced in the recent budget."

According to Scargill, Johan Castberg's economics suggest that without such measures, new developments are unlikely to be commercially viable further north in the Barents Sea, where costs are expected to be higher.

On the other hand, the Canadian and US Arctic regimes would likely enable a project with Johan Castberg's cost profile to generate a fair return on investment.

However, as Scargill continues: "IOCs considering Arctic operations must balance the attractiveness of fiscal regimes with other obstacles.
"Despite the potential for promising economics in Alaska and Canada's offshore regions, these areas are subject to stringent environmental regulations, which could frustrate operators' plans."

Express Energy Services ("Express" or the "Company"), a North American oilfield services company, has announced that funds managed by affiliates of Apollo Global Management, LLC (NYSE: APO) (together with its consolidated subsidiaries, "Apollo") and participating management have agreed to acquire the Company from its existing shareholders. Terms of the transaction were not disclosed.

Express, founded in 2000, is a premier provider of products and services to the petroleum and energy industries. Offering oilfield services in every major hydrocarbon basin in the United States, Express assists its customers with six service lines, including casing and tubular running and completion and production services, and a workforce of approximately 1,700 employees in more than 30 locations.

"Apollo is one of the largest and most successful private equity firms in the world and possesses the type of deep energy expertise that we believe will enhance the value of Express Energy Services," said Darron Anderson, chief executive officer, Express Energy Services. "We are proud Apollo has chosen Express as a platform for oilfield services and are thrilled to partner with them to further develop and grow our business. We expect this transaction will provide considerable strategic benefits to our underlying business along with our customers and employees."

"We look forward to our new partnership with Express Energy Services and its outstanding management team and employees. We have been extremely impressed with the Company's culture of excellence, track record of operational success and strong commitment to training, safety and service quality," said Michael Jupiter, partner, Apollo Global Management. "We believe we are well positioned to help Express achieve its long-term growth strategies for its existing and future service line offerings."

Express will continue to be headquartered in Houston, Texas.