HOUSTON – General Electric on Monday received U.S. antitrust approval to combine its oil and gas operations with Baker Hughes, potentially creating an oil services powerhouse with more than $32 billion in revenue. The approval is conditioned on GE selling its Water and Process Technologies business. "Today’s milestone represents significant progress toward creating an oil and gas productivity leader positioned to deliver value for customers, employees and shareholders," Baker Hughes said in a statement. Download the Click2Houston news app in your app store to stay up-to-date with the latest news while you're on the go. Sign up for KPRC 2 newsletters to get breaking news, sports, entertainment, contests and more delivered straight to your email inbox.

This week, the deal's closure was again stalled by European regulators as EU anti-trust officials halted their investigation saying that information is missing from their requests. The EU commission has expressed concerns about competition being reduced by the deal. This week, Bloomberg reported that Total CEO Patrick Pouyanne voiced concerns over the deal. When asked if he voiced his opinion on Halliburton planning to buy Baker Hughes, he said, "I’m doing my job." Other companies that have been vocal in their opposition of the merger include Chevron Brazil and Sonangol.

Yesterday afternoon, Tidewater, the industry's largest offshore supply vessel (OSV) company, announced that it drew down its revolver. We are in compliance with all financial covenants and other terms of the revolving credit facility and our note indentures." As a result, Tidewater signaled in yesterday's press release that a covenant breach could be coming before calendar year end. This would be a default under the company's debt facilities, and the revolver drawdown could give Tidewater some negotiating leverage to resolve the default without business interruption. Tidewater has already begun the negotiation, initiating dialog with its lenders to try and get covenant waivers and amendments ahead of the breach.

A rig drilling today is not the same as a rig drilling 100, 50 or even 10 years ago. Leaps in modern drilling rig efficiency and productivity (as well as capital intensity) is something we've written about repeatedly over the past several years. Last week, the total US drilling rig count fell to a record low since Baker Hughes began tracking the data in 1949. Weekly North American Rig Count StatisticsLast week, the total US rig count fell 9 rigs to 480. WTI is in the high-$30s as of this writing, skewing rig count direction lower and below expectations for the rest of 1H16.

It is with sadness and sympathy for the family and employees that Oilpro reports Josh Comstock, founder and CEO of C&J Energy Services passed away in his sleep last night. Oilpro can confirm that employees of C&J Energy services were informed by email of the executive's death at approximately 10 am Friday morning. Our thoughts and prayers are with Josh's family and all the employees of C&J Energy Services during this difficult time. About Josh:Mr. Comstock was Chairman of the Board of Directors and Chief Executive Officer of C&J Energy Services Ltd, positions he held since founding C&J in 1997 in Corpus Christi, Texas. Prior to founding C&J, Mr. Comstock worked in the pressure pumping services industry, as well as in the pipeline industry, serving in a variety of roles.

Whether you loved him or hated him, Aubrey McClendon always had your attention. Reflecting on the past decade or two, it's hard to name any CEO who left a more indelible mark on the O&G industry than Aubrey. Aubrey McClendon was shale. In the end, the phrase that sums Aubrey up best is oilfield legend. Aubrey McClendon, oilfield legend, 1959-2016.

2016 has seen a flood of new oil industry equity issues - approaching $10bn in total - as increasingly strained O&G companies try to gain some financial flexibility. Dilutive equity raises at this point in the cycle might best be described as aggressive prudence. E&Ps Hit The Bid First, Oilfield Service Firms May Be NextSo far, most of the new issues have been from E&P companies, but a series of equity raises for oil service firms could be starting now. Weatherford management just extended their liquidity visibility in an uncertain environment marred by falling oil service demand, declining rig counts, and fading credit availability. In oil service, several smaller players will start to breach debt covenants (EBITDA provisions) this year or next without some unforeseen spike in oil prices and activity.

Unconventional shale oil CANNOT compete with Russia and OPEC's giant conventional reservoirs in terms of profitability, nor sustainability; it declines too quickly and costs too much. This "in your face" attitude by the shale oil industry toward OPEC, the latest case being EOG's, is stupid. So too did every shale oil company in America lose money last year. But make NO mistake about it, even the best shale oil company in the world is in very serious trouble at the moment. Shale oil that declines at the rate of 73% the first 3 years of production cannot compete with the rest of the world's conventional fields.

80% Capex Cut, Fracing FreezeDenver-based Whiting's projected 2016 Capex is $500 million, down approximately 80% from its 2015 capital expenditures. Based on the 2016 capital budget, Whiting forecasts 2016 production of 46.8 to 50.5 MM/boe (128,000 to 138,000 boepd). In 4Q15, Whiting's net production from the Bakken/Three Forks representing 83% of its total 4Q production. In 4Q, Whiting completed 21 operated wells that produced for 30 or more days and had average sand volumes of 6.7 million pounds. Net production from the Redtail field averaged 14,345 boepd in 4Q15.

The pile of cancellation notices is almost the same size as the long-term H&P rig contracts operators are still honoring. 115 H&P rigs are currently generating revenue days, including 28 in the spot market. Weekly North American Rig Count StatisticsThe North America rig count fell 37 units last week with declines in both US land and Canada. The US land rig count fell 17 units to 590 rigs running. The Eagle Ford, with 64 rigs running, is the second most active basin, and it was flat last week.