US Oil Output Continues its Steady Decline
All of the oil (C + C) production data for the US states comes from the EIAʼs Petroleum Supply Monthly (PSM). At the end, an analysis of three different EIA Continue Reading
Oil Market Could See Long Term Contango
The oil market could stay in a state of contango for longer after supply and demand finally balance due to the vast amount of crude and products in storage, Reuters Continue Reading
Three Key Events In The Global Oil Patch
Three Events to Watch in the Global Oil Patch First, while the markets are again overly obsessed with OPEC news (particularly in the aftermath of an oil price war), all Continue Reading
Oil Explorers Revert to Pre-Shale Drilling Level Across U.S.
Oil explorers are drilling at the slowest pace in more than a decade as the pandemic-driven collapse in energy demand wipes out cash flow, jobs and even entire companies. Drillers idled Continue Reading
Oil And Gas Rig Count Falls For Ninth Straight Week
Baker Hughes reported on Friday that the number of oil and gas rigs in the US fell again this week by 17, falling to 301, with the total oil and Continue Reading
The Shale Bust Has Arrived
1. Shale bust is here – Shale wells decline somewhere between 70 and 90 percent from their initial peak within 3 years, with the bulk of that decline coming within Continue Reading
Producers turn to hedging as shelter against oil market turmoil
US shale oil producers have moved in droves during the last couple of months to protect themselves from current market turmoil by hedging, using a variety of derivative instruments to Continue Reading
U.S. pipeline operator Energy Transfer warns of coming job cuts
U.S. pipeline operator Energy Transfer will begin cutting about 6% of its workforce next week, underscoring the spreading impact of weak oil and gas prices on the energy business. Marshall Continue Reading
Oil Explorers Revert to Pre-Shale Drilling Level Across U.S.
Oil explorers are drilling at the slowest pace in more than a decade as the pandemic-driven collapse in energy demand wipes out cash flow, jobs and even entire companies. Drillers Continue Reading
Oil-Bust Refugees Are Being Courted By Clean Energy in Texas
Jeff Bishop’s LinkedIn post gets right to the point: “Houston Oil & Gas Folks — we’re hiring in Texas” for jobs in clean tech. His company, battery developer Key Capture Energy, Continue Reading
The Oil Storage Crisis Is Far From Over
It’s more than a month since the oil markets sunk to a nadir in the mother-of-all market routs. Since then, oil prices have staged an impressive recovery, especially from WTI’s Continue Reading
Summary of Weekly Petroleum Data for the week ending May 22, 2020
U.S. crude oil refinery inputs averaged 13.0 million barrels per day during the week ending May 22, 2020 which was 87,000 barrels per day more than the previous week’s average. Continue Reading
U.S. Shale Production Won’t Bounce Back Until 2021
It could take a year before U.S. shale production starts to rise again, the chief executive of Precision Drilling Kevin Neveu told Bloomberg. This could happen even if a hypothetical Continue Reading
US oil, gas rig count slips 24 week on week to 333 as cycle bottom seen nearing
Highlights Permian Basin sheds 14 rigs this week to fall to 171 Decline in rig totals slowing Operators eye more gas drilling in H2 2020 Houston — The US oil Continue Reading
Coronavirus lockdowns put the spotlight on crude oil storage
US crude storage quickly became a major issue at the crux of the coronavirus pandemic lockdowns, as global markets struggled to find enough places to stash oil amid the oversupply Continue Reading
Study Finds GOM Offshore Industry at Risk
Potential leasing and drilling bans threaten the GOM oil and gas industry, NOIA-commissioned study finds. Potential leasing and drilling bans threaten the Gulf of Mexico (GOM) oil and natural gas Continue Reading
Shutting Down Oil Wells, a Risky and Expensive Option
The temporary shutting in of wells is the one thing that oil companies are trying to avoid at all costs. That’s because restarting production is expensive and wells are not Continue Reading
Peak Oil Isn’t Here But It Could Be In Sight
By one oil consultancy’s estimate, Peak Oil will be here by 2028, or two years sooner than it previously had predicted, according to Reuters . That ceiling would be somewhere Continue Reading
U.S. Shale Is Living Beyond Its Means
Global investment in energy will fall by $400 billion in 2020, the largest single-year decline in history. U.S. shale will be hit particularly hard, with capex set to fall in Continue Reading
Analysis: US crude builds resume as USGC imports surge
US crude inventories moved higher last week after a surge of imports pushed US Gulf Coast stockpiles to fresh all-time highs, US Energy Information Administration data showed Thursday. US commercial Continue Reading
Shut-in, even new wells may be attractive at $30s/b WTI: analysts
NYMEX crude futures have risen above the $30/b level that represents breakeven for many US upstream operators, which could result in some restoration of shut-in wells soon as the economic Continue Reading
Oil Plunges After API Reports Large Unexpected Crude Inventory Build
The American Petroleum Institute (API) estimated on Tuesday a large crude oil inventory build, of 8.731 million barrels for the week ending May 22. Analysts had predicted an inventory draw Continue Reading
Oil Markets Could Soon Face A Devastating Supply Crunch
Concerted production cuts by OPEC+ and IOCs have largely been canceled out by a sharp fall in global oil demand from a record peak of >100 mbd to a recent Continue Reading
Pandemic Triggers Record $400 Billion Drop In Energy Investment
The COVID-19 pandemic will result in the biggest annual drop in energy investments on record—nearly US$400 billion, the International Energy Agency (IEA) said in its new World Energy Investment 2020 Continue Reading
Energy spending slump risks slowing transition, creating supply shortage: IEA
Global energy investment is expected to plunge by 20%, or almost $400 billion, in 2020 as the COVID-19 crisis risks slowing the world’s transition to cleaner and sustainable energy systems, Continue Reading
Gulf of Mexico oil sector faces pandemic-related risks and hurricanes
Weak crude oil will make it harder for some Gulf of Mexico operators to fulfill their drilling requirements on leases just as the industry is battling outbreaks of coronavirus offshore Continue Reading
Texas Oil Production Drops
Crude oil production in Texas dropped year on year in March, according to the Railroad Commission of Texas’ (RRC) latest figures. The preliminary reported total volume of crude oil production Continue Reading
Oil CEO Says US Shale Rebound Is At Least a Year Away
US shale drillers may still take at least a year before moving rigs back into the field. (Bloomberg) — Even if the economy continues to recover and a second wave Continue Reading
Permian Drillers Resilient Despite Record-Breaking Rig Count Crash
Although the Covid-19 pandemic continues to decimate active horizontal rigs in the US, the Permian Basin is emerging as the last surviving epicenter of drilling activity, a Rystad Energy analysis Continue Reading
Texas Economy Could Lose $24B If Oil Prices Stay In The $30s
The downturn in the U.S. oil industry could lead to more than US$24 billion of lost GDP for Texas alone, if oil prices remain in the $30s, Ed Hirs, Energy Continue Reading
Investment in U.S. Shale Projects to Halve in 2020, IEA Says
Investment in the U.S. shale sector will drop by half this year, the International Energy Agency said Wednesday, predicting a period of pain for producers, even as oil prices rally. Continue Reading
Will U.S. Shale Survive If Oil Hits $40?
Within a month, the U.S. oil benchmark West Texas Intermediate recorded two first-of-a-kind events. First, it fell below zero on April 20. Then, it soared up so high it is Continue Reading
US shale industry braces for wave of bankruptcies
The biggest independent shale oil groups in the US reported a record combined loss of $26bn in the first quarter as the sector braces itself for a wave of bankruptcies Continue Reading
Shale Bust Hits Rural Communities As Oil Royalties Plunge
The oil price collapse is hurting not only U.S. shale firms and their drilling activities. The crash has severely crippled the royalty payments to a dozen million American oil and Continue Reading
Oil Firms Among Worst Hit As Wave Of Bankruptcies Hits Texas
Oil and gas companies, as well as the retail industry, are the worst hit sectors in the COVID-19 pandemic that swept through businesses in Texas, bankruptcy and restructuring lawyers say. Continue Reading
‘This could be the one that gets me,’ says oilfield service veteran
Tim Harris was preparing to relocate for an assignment with energy services firm Halliburton Co ( HAL.N ) for the fifth time in 15 years when his career came to Continue Reading
U.S. drilling industry says offshore ban would crush jobs, government revenues
A U.S. ban on new offshore drilling in the Gulf of Mexico, which presidential hopeful Joe Biden promised to enact if elected, would lead to hundreds of thousands of job Continue Reading
$30 Oil Isn’t Good Enough For U.S. Shale
The rebound of WTI from below zero back into the $30s led to a wave of bullish trading, with energy stocks rallying in response. One renowned industry expert recently celebrated Continue Reading
Crude Oil, Shale News: Latest Analysis Amid Price War
Oil prices have surged more than 75% in the U.S. this month. But don’t expect a quick rebound in supply from shale explorers. The quick turnaround in oil markets is exposing the shale Continue Reading
A stealth peak in world oil production?
We who have been suggesting that a peak in world oil production was nigh almost from the beginning of this century looked like we might be right when oil prices Continue Reading
Are Non-OPEC’s Best Days in the Rear-view Mirror
While this post updates Non-OPEC production to January 2020, we are now in late May and the direction for future production for the next few years is clear, LOWER than Continue Reading
Coronavirus Threatens to Hobble the U.S. Shale-Oil Boom for Years
But before the new coronavirus sapped global demand for crude, causing shale-drilling companies to shut off wells en masse to avoid losing money, many were struggling to turn a profit Continue Reading
Oil Companies Forced To Renegotiate Deals Or Risk Losing It All
On April 20, the West Texas Intermediate crude benchmark did not just fall below zero, it plummeted to negative $37.63 a barrel . This stunning price crash was the result Continue Reading
Prepare For Major Oil Market Consolidation
COVID-19 Market Update Brent crude gained over 1% Thursday, which–dull as it sounds–was its highest level since March. The bump came as US inventories lessen and OPEC cuts production, while Continue Reading
America’s Shale Drillers Extend Their Retreat for a 10th Week
Shale explorers extended their retreat into a 10th week, dropping the number of oil rigs at work in the U.S. to the lowest since 2009 as some struggle to stay Continue Reading
US oil production is falling much more quickly than thought
US oil production is falling more steeply than expected, forcing analysts to scale back output projections even before a deep plunge in planned upstream spending further cuts supply later this Continue Reading
U.S. Rig Count Collapse Continues Despite Soaring Oil Prices
Baker Hughes reported on Friday that the number of oil and gas rigs in the US fell again this week by 21, falling to 318, with the total oil and Continue Reading
Permian Basin, other associated gas plays lead US production to 16-month low
Highlights Output hits 85.5 Bcf/d, down 9% from record high At 357, US rig count has fallen 57% from annual peak Permian, SCOOP/STACK, Bakken lead output decline New York — Continue Reading
Boom to bust in the US shale heartlands
US oil and gas producers entered 2020 under the cosh – out of favor with investors and wilting under heavy debt loads. The Russian and Saudi oil price war was Continue Reading
America’s Shale Drillers Extend Their Retreat for a 10th Week
Shale explorers extended their retreat into a 10th week, dropping the number of oil rigs at work in the U.S. to the lowest since 2009 as some struggle to stay Continue Reading