Category: Shale Oil

Bakken Rigs and Productivity Production in the Bakken Shale play decreased over the summer according to the Energy Information Administration’ s latest Drilling Productivity Report. Related: Bakken Rig Count Falls to 70 Since April, oil production in the major shale plays has decreased sharply, with total production falling by 350,000 barrels and the EIA expects that this trend will continue and for production to decline for most of the key US shales by October. On September 14th, the EIA reported that the Bakken Shale produced 1.22 MMbpd (million barrels per day) of crude oil in August, 1.40% less than the month before but 5.10% more that a year ago. The Bakken will likely see a fall and is expected to produce 1.18 MMbpd (million barrels per day) of crude oil in October. And the bad news gets worse. Recent data from FactSet suggests that producers in the shale industry […]

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Oil producers in the U.S. are about to see their credit lines shrink, just when they need the money most. The latest round of twice-yearly reevaluations is under way, and almost 80 percent of oil and natural gas producers will see a reduction in the maximum amount they can borrow, according to a survey by Haynes and Boone LLP, a law firm with offices in Houston, New York and other cities. Companies’ credit lines will be cut by an average of 39 percent, the survey showed. "There’s going to be a reduction to the majority of these credit lines," said Neal Dingmann, an analyst at SunTrust Robinson Humphrey Inc. "It’ll make a lot of these companies reduce a bit more on spending." In many cases, banks have first claim on assets in a bankruptcy, and the size of a loan is tied to how much an oil producer’s acreage […]

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As energy companies drill fewer wells, some small firms that frack wells face bankruptcy. A wave of bankruptcies and closures is sweeping across the oil patch, with dozens of hydraulic-fracturing companies at risk, industry experts say. Most of the companies that help oil-and-gas explorers drill and frack wells are small, privately owned and just a few years old. They are part of a flood of new entrants in the energy business—one that is drying up as oil prices languish below $50 a barrel. One of the latest casualties is Pro-Stim Services. Launched in 2011 with backing from Turnbridge Capital LLC, a private-equity firm, the company did work for oil-and-gas producers eager to coax more fuel out of the ground in places like Texas and Louisiana. “The Haynesville Shale was blowing and going at that time,” said Bubba Brooks, who founded the company in Longview, Texas, after working in the […]

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The number of rigs engaged in exploration and production in North Dakota was down more than half from last year. Photo by David Gaylor/Shutterstock BISMARCK, N.D., Sept. 21 (UPI) — The number of rigs engaged in exploration and production in North Dakota, the No. 2 oil producer in the nation, is on a steady decline, state data show. Data from the North Dakota Industrial Commission show 67 rigs employed across the state, down about 3 percent from last week and 65 percent less than this date in 2014. The 196 rigs engaged in exploration and production activity on Sept. 21, 2014, was the highest in three years . Oil field services company Baker Hughes reported last week the number of rigs deployed across the United States fell 1.2 percent to 644 for the third-straight week of declines. Low crude oil prices mean energy companies have less capital to invest […]

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In New Auburn , Wisconsin, a desolate, little outpost carved from the rolling pine-tree forests that run into Lake Superior, the collapse in oil is wreaking havoc on every aspect of the economy. It’s not that there’s any oil here. None in fact for hundreds of miles around. What they’ve got is sand. Real good sand, piled high in giant mounds. And in what is a little-known offshoot of the shale oil revolution that swept across America over the past decade, the market for sand — the grit that props open the rocks and makes fracking possible — exploded too, transforming almost overnight what had been a sleepy industry that sold primarily to the likes of glass makers and golf courses. So when the shale boom went bust, it took down the sand industry with it. Prices have sunk almost a third to under $40 per ton. A winter […]

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The Texas RRC Oil & Gas Production numbers are out. They came out on a weekend this month. All RRC data is through July. The EIA data is through June. Keep in mind that the RRC data is incomplete, that is why the chart lines droop on the end. However the EIA data is from the EIA’s Petroleum Supply Monthly , the data of which the EIA says now comes directly from the states, and reflects the complete best estimate of oil production. Texas C+C According to the EIA data, Texas crude + condensate peaked, so far, in March and declined in April, May and June. However the incomplete data from the RRC shows production likely dropping sharply in April, up in May then flat for June and July. Dean C+C Dr. Dean Fantazzini has an algorithm that uses past and present RRC data and predicts what the final […]

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The most significant bankruptcy of the current oil downturn has shone a spotlight on what is perhaps the most oversupplied corner of the energy world: the market for offshore rig services. Samson Resources Corp, an independent oil producer bought just four years ago for $7.2 billion, said in its late Wednesday filing for creditor protection that a 60 percent crude price slide CLc1 LCOc1 had upended its business. In the offshore space, restructurings and asset sales are widely seen as likely and some chief executive officers are now openly talking about acquisitions. Paragon Offshore Plc ( PGN.N ), which has an outdated fleet, said on Thursday it has hired Weil, Gotshal & Manges, a well-known restructuring firm, and the investment bank Lazard. And Vantage Drilling Co, which has a hefty debt load, has also said it retained financial adviser Lazard to explore options. Vantage did not provide additional comment. […]

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