North America dropped 35 rigs week on week, according to Baker Hughes’ latest North America rotary rig count, which was released on March 14. Although the total U.S. rig count remained unchanged week on week, Canada’s total rig count dropped by 35 during the same period, taking the total North America rig count down to 791, comprising 592 rigs from the U.S. and 199 from Canada, the count outlined. Of the total U.S. rig count of 592, 576 rigs are categorized as land rigs, 14 are categorized as offshore rigs, and two are categorized as inland water rigs. The total U.S. rig count is made up of 487 oil rigs, 100 gas rigs, and five miscellaneous rigs, according to the count, which revealed that the U.S. total comprises 530 horizontal rigs, 50 directional rigs, and 12 vertical rigs. Week on week, the U.S. land rig count, offshore rig count, and inland water rig count remained unchanged, the count highlighted. The U.S. gas rig count decreased by one, its oil rig count increased by one, and its miscellaneous rig count remained unchanged, week on week, the count showed. Baker Hughes’ count revealed that the U.S. horizontal rig count decreased by one week on week, while the country’s directional rig count increased by one and its vertical rig count remained unchanged during the period. A major state variances subcategory included in the rig count showed that, week on week, New Mexico dropped three rigs and Oklahoma added two rigs. A major basin variances subcategory included in Baker Hughes’ rig count showed that the Permian basin dropped three rigs, the Eagle Ford basin dropped one rig, the Granite Wash basin added two rigs, and the Williston basin added one rig, week on week. Canada’s total rig count of 199 is made up of

Goldman Sachs Group Inc. cut its oil price forecasts, as tariffs reduce the outlook for US growth while OPEC and its allies boost output. The move follows a drop in crude prices from this year’s high in January on plentiful supply, a weak demand outlook from top importer China and an escalating international trade war.  “While the $10 a barrel sellof since mid-January is larger than the change in our base case fundamentals, we reduce by $5 our December 2025 forecast for Brent to $71,” Goldman analysts including Daan Struyven said in the note dated Sunday. “The medium-term risks to our forecast remain to the downside given potential further tariff escalation and potentially longer OPEC+ production increases.” Some of the world’s biggest oil traders have turned increasingly bearish, with the likes of Vitol Group and Gunvor Group forecasting oversupply. The International Energy Agency said last week that demand is being eroded by the escalating trade war and the pledge by the Organization of Petroleum Exporting Countries and its allies to increase shipments, forecasting a surplus of 600,000 barrels this year — or about 0.6% of daily global consumption. However, Goldman Sachs said it expects prices to recover “modestly” in the coming months as US economic growth remains resilient for now, and Washington’s sanctions regime is showing no immediate signs of easing. Other geopolitical risks remain, including the latest US order to attack sites in Yemen controlled by the Houthis as they continue menacing Red Sea shipping. Oil demand will rise 900,000 barrels a day in January, 18% less than a previous forecast, Goldman said. Brent will trade in a range of $65 to $80 a barrel, and average $68 next year, the bank said. WHAT DO YOU THINK? Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments

Murphy Oil Corporation has signed an agreement to acquire the BW Pioneer floating production storage and offloading vessel (FPSO). The company said in a media release that it has agreed to pay $125 million to BW Offshore for the unit, with an initial payment of $100 million due upon delivery by the end of the first quarter of 2025. The remaining balance is payable once specific contractual obligations are fulfilled, anticipated by the end of the second quarter of 2025. Murphy also said the FPSO BW Pioneer will stay where it is, aiding operations at the Cascade field (Walker Ridge 206 and 250) and the Chinook field (Walker Ridge 469 and 425) in the Gulf of Mexico. BW Offshore will keep offering operations and maintenance services through a new five-year reimbursable contract. “I am pleased to announce this value-creating transaction with BW Offshore, a top FPSO operator with a strong safety culture, and I look forward to continuing our partnership. By acquiring the FPSO and restructuring our contract, we will achieve a material reduction in operating costs of nearly $60 million annually with a payback of about two years independent of oil price, while enhancing returns for future infield development and exploration and increasing net proved developed reserves by approximately 8 million barrels of oil equivalent”, Eric M. Hambly, President and Chief Executive Officer of Murphy Oil, said. “It is also important to note that the purchase price was included in our 2025 capital expenditure guidance range of $1,135 million to $1,285 million. “Further, the FPSO is located in the prolific Wilcox trend, allowing for operated and non-operated exploration prospects to tie back to a cost-advantaged facility”. BW Pioneer, the first FPSO approved in the Gulf of Mexico, has been in service since 2009. It has a storage capacity of

UK fusion technology developer Tokamak Energy plans to expand its global partnerships as it commercialises nuclear fusion based power generation. In an exclusive interview with Energy Voice, Tokamak Energy chief executive Warrick Matthews stressed the need to “get the right partnerships on board”. Matthews, who joined the company in 2022 from Rolls-Royce where he was chief procurement officer for the civil aerospace division, said such partnerships will be instrumental in the growth of the business and commercialising its core technology. Tokamak Energy has already partnered with a raft of companies as part of its work on a UK government-backed programme to develop nuclear fusion at scale. Its partners on the Spherical Tokamak for Energy Production (STEP) programme include Italian energy supplier Eni, nuclear manufacturer Westinghouse, and engineering companies AtkinsRéalis and Momentum. Matthews said it could expand its partnership with Eni in the future in connection with its role as an energy supplier. “We’re partnering to bring value to the STEP programme in the UK,” Matthews said of the partnership with Eni. “It’s a public-private partnership, so it’s actually looking to industry players to come together in consortia and be a large part of developing the technology; but also, building the supply chain so you can roll out these devices in the future. That’s where we’ll be working together strongly.” “And we’re looking at more broadly at wider partnerships, but for the future,” he added. “Eni is a partner, so we would work together.” Going global Matthews indicated that Tokamak and the Italian energy supplier could partner on a possible rollout of fusion technology in Europe. “Eni is very proactively investing in fusion and developing technology. It wants to operate fusion plants in the future and it doesn’t want to operate a black box. They want to be an expert.” Tokamak Energy is also

Energy and home services company NRG Energy Inc. has invested $2.5 million in Equilibrium Energy, an energy technology platform that leverages AI to enhance energy portfolio optimization capabilities. “With this investment, NRG aims to gain market intelligence and explore solutions to address grid volatility created by load growth, intermittent renewable generation, and extreme weather events”, NRG said in a media release. “We are always looking to support innovative technologies that strengthen the energy landscape”, Robert J. Gaudette, Executive Vice President, and President of NRG Business and Wholesale Operations at NRG, said. “Equilibrium’s AI-driven platform offers a differentiated approach to managing volatility and balancing risk, and we are excited to invest in their vision and collaborate with their team”. The funding is provided by NRG’s corporate venture capital fund, which aims to generate strategic opportunities that are in line with the company’s long-term goals, NRG said. The $50 million fund is set to invest over the next 5 to 7 years, focusing on early- and mid-stage companies, it said. Initial investments are set at $0.5 million to $2.5 million, and the fund will keep reserves available for subsequent investments, according to NRG. Cerity Partners Ventures, a company that focuses on corporate venture capital, will assist NRG in managing the fund. NRG added that its venture capital fund will establish a fresh path for a structured interaction with entrepreneurs, technologies, and business models that are influencing the energy and smart home sectors. By means of its equity investments, the fund will foster innovation and pinpoint opportunities that improve NRG’s capacity to adjust and excel in a swiftly changing environment, the company said. To contact the author, email [email protected] WHAT DO YOU THINK? Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject

Amid the North Sea’s decline, large companies are moving out and being replaced by smaller players, able to take on lower margin projects. But in practice, the looming spectre of decommissioning liabilities can derail these asset transfers. If the conditions are not right to allow companies to transfer assets, decommissioning is inevitable. Large companies must consider the risks of a sale, versus the known quantity of decommissioning. This trend threatens to accelerate the North Sea’s decline. If the government wishes to change the pace of decommissioning, it will need substantial investment to manage the consequences. Decommissioning considerations are complex, Bracewell partner Alistair Calvert explained. There are “significant risks involving complex practical and regulatory issues and bespoke and potentially unforeseen issues on each site. Layered over these risks and the scope for dispute within the project itself, is the question of liability for the costs of decommissioning.” The Petroleum Act 1998 sets out decommissioning responsibilities. Changing plans Sir Ian Wood wrote his 2014 report on maximising economic recovery (MER) from the North Sea. He came out strongly in favour of deferring decommissioning. At that time, he wrote, pushing back decommissioning by five years on average would provide an extra 1 billion barrels of oil equivalent. The MER plan did not survive its encounter with the UK’s decarbonisation goals and was amended in 2021. The changes brought in a new focus on maximising value, over volume. The new strategy left more room for complexity, in its attempts to shift thinking in the region. Complying with the strategy may “oblige individual companies to allocate value between them … it will not be the case that all companies will be individually better off”. Easy to say in a strategy document, but hard to implement. The 2021 paper went on to say when considering decommissioning, companies