Category: Shale Oil

Chesapeake cuts its 2015 capital budget for the second time this year to cope with a slump in oil and gas prices, but raises its production forecast. Nov 4 (Reuters) – Chesapeake Energy Corp cut its 2015 capital budget for the second time this year to cope with low oil and gas prices and swung to a large quarterly net loss as the second largest U.S. producer of natural gas wrote down the value of assets. The Oklahoma City, Oklahoma company’s shares fell 5 percent to $7.25 in morning New York Stock Exchange trading, as third-quarter cash flow fell short of Wall Street estimates. U.S. oil and gas producers are slashing budgets, costs and streamlining operations as a near 60 percent drop in global oil prices since June last year saps profitability. In response, Chesapeake has so far cut about 15 percent of its workforce and suspended its dividend. […]

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A pump jack operates at a well site leased by Devon Energy Production Company near Guthrie, Oklahoma September 15, 2015. A handful of U.S. shale oil producers are pushing up their production forecasts, saying efficiency gains from drilling in prime rock are helping them eke out more crude in the middle of the worst price crash in six years. The slightly bolder outlooks this week from Oasis Petroleum Inc ( OAS.N ), Devon Energy Corp ( DVN.N ), Pioneer Natural Resources Co ( PXD.N ) and Diamondback Energy Inc ( FANG.O ) show that the confident swagger that typified the U.S. shale boom’s early days has yet to be fully tempered by the more than 50 percent drop in oil prices CLc1 since last year. Though the consensus view is that rig productivity in U.S. shale basins is stalling to portend a drop in national output as companies struggle […]

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The three-member Texas Railroad Commission on Tuesday accepted the findings of the commission staff that two oil and gas wastewater disposal wells were not the likely cause of a series of earthquakes that shook parts of North Texas in late 2013 and early 2014. The decision, which the commission made in an open conference meeting Tuesday morning, clears the two injection wells, owned by Houston-based Enervest and ExxonMobil subsidiary XTO Energy, respectively, of responsibility for the minor quakes felt by residents in the small cities of Azle and Reno. About three dozen earthquakes were reported in Azle and the surrounding area. Most were considered minor, registering about 3.3 magnitude or less. TRC hearings examiner Paul Dubois reported the results of hearings held last summer to determine if the wells contributed to the unusual seismic disturbances that had alarmed residents of the area, which lies in the heart of the […]

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In a further sign the worst may be over for North Dakota, the state reported an increase in the number of rigs exploring for or producing oil and natural gas. Continue Reading

American oil companies pulling back in the face of low crude prices are making the steepest production cuts in South Texas. Oil output from the giant Eagle Ford field tumbled by almost 227,000 barrels a day, or 13%, between September and April, which marked the peak for the seven most prolific U.S. shale regions, according to federal estimates. That field’s drop accounted for 90% of the overall decline. But that drop may be only temporary. Several of the biggest operators in the Eagle Ford are still drilling wells and putting off extracting the oil until prices rise. U.S. oil now sells for under $50 a barrel, less than half the price a year ago. Leaving the oil in the ground from an unfinished well saves a company millions of dollars up front and provides it with reserves that can quickly be tapped if prices rebound, said Jason Wangler, an […]

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Prolific output from US shale formations in recent years have thrown the world oil market off balance. But a long market slump is now forcing shale producers to retreat . US crude oil output hit a 44-year peak of 9.6m barrels a day in April then began to decline. By summer next year it will have fallen by a tenth, the US Energy Information Administration (EIA) forecasts. It took months for US supplies to finally reverse in response to the tumble in oil prices that started in mid-2014. If prices creep higher again, any rebound in shale production will come with a similar lag, analysts say. The US shale energy industry has made a stunning contribution to the oil market glut. Of the nearly 5m b/d in net global crude oil supply added between 2009 and 2014, 3.3m b/d was from the US, EIA data show. World supply stood […]

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Huge cost savings are waning for U.S. shale oil companies, marking an end to the drastic price cuts on equipment and services over the past 16 months that helped them survive the worst industry downturn in six years. Companies including Anadarko Petroleum Corp, ConocoPhillips and Occidental Petroleum Corp have saved millions on drilling and fracking wells in Texas, Colorado and North Dakota since the oil price slide started by demanding that oilfield service companies slash prices by 20 percent to 30 percent or more. Those savings, coupled with big gains in rig productivity that allowed more oil to be pumped with less equipment, created a lifeline for companies coping with a more than 50 percent drop in crude prices. But productivity gains have stalled in the last few months and deflation may be slowing as well, just as producers try to withstand a lower-for-longer price outlook. ConocoPhillips has seen […]

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