Continental Resources’ chief vows shale will bounce back
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Oil glut worsens as OPEC market-share battle just beginning: IEA
LONDON A global oil glut is building as OPEC kingpin Saudi Arabia pumps near record highs in an attempt to win a market-share battle against stubbornly resistant U.S. shale production, the International Energy Agency (IEA) said on Wednesday. The West’s energy watchdog said in a monthly report that although higher-than-expected oil demand was helping to ease the glut, growth in global oil consumption was far from spectacular. As a result, signs are emerging that the crude oil glut is shifting into refined products markets, which could make a recent rally in oil prices unsustainable. "Despite tentatively bullish signals in the United States, and barring any unforeseen disruption elsewhere, the market’s short-term fundamentals still look relatively loose," said the IEA, which coordinates energy policies of industrial nations. Global oil production exceeds demand by around 2 million barrels per day, or over 2 percent, following spectacular growth in U.S. shale production […]
North Dakota Posts Surprising Jump In Oil Output In March
North Dakota posted a surprising jump in oil and natural gas output in March, as producers leaned on newer technologies and processes to offset a slump in commodity prices. WILLISTON, N.D., May 13 (Reuters) – North Dakota posted a surprising jump in oil and natural gas output in March, as producers leaned on newer technologies and processes to offset a slump in commodity prices. Many industry observers had expected output to fall for the third consecutive month in the wake of a more than 50 percent drop in oil prices since last summer. "We scratched our heads in the month of March" as to why production increased, Lynn Helms, director of the state’s Department of Mineral Resources, said during a conference call with reporters. Yet the increase shows producers’ willingness to wring efficiencies out of existing operations, as well as their attempt to maintain production, even at depressed prices, […]
Bakken Data + Short Term Energy Outlook
North Dakota has published their Bakken Production Data as well as North Dakota Production Data . Bakken Production North Dakota production was up 12,501 bpd above February but still stands 37,531 bpd below the December high and is still 789 bpd below the January production numbers. Bakken BPD Per Well Barrels per day per well is dropping, 12o for Bakken wells, 99 forN.D. Total and 23 for Conventional wells. Bakken Wells Producing According to the NDIC stats the number of wells actually producing in the Bakken increased by 250 in March and total North Dakota wells increased by 236. Which means some non-Bakken wells were shut down. Lynn Helms said, in the Director’s cut, that the increase was 240 producing wells though his totals were different. Feb Producing Wells = 12,199 Mar Producing Wells = 12,439 (preliminary)(NEW all-time high) 9,397 wells or 76% are now unconventional Bakken – Three forks […]
Shale-Oil Producers Ready to Raise Production
ENLARGE A Pioneer Natural Resources oil rig in the Eagle Ford shale region of Texas. The company said last week it hopes to increase drilling and add two new rigs per month from July if oil prices continue to rise. Photo: PIONEER NATURAL RESOURCES/BLOOMBERG NEWS After slashing production for months, U.S. shale-oil companies say they are ready to bring rigs back into service, setting up the first big test of their ability to quickly react to rising crude prices. Last week, EOG Resources Inc. EOG -1.94 % said it would ramp up output if U.S. prices hold at recent levels, while Occidental Petroleum Corp. OXY -0.67 % boosted planned production for the year. Other drillers said they would open the taps if U.S. benchmark West Texas Intermediate reaches $70 a barrel. WTI settled at $60.50 Wednesday, while global benchmark Brent settled at $66.81. An increase in U.S. production, coupled […]
Has the Bakken Peaked?
U.S. Shale Production |Energy Information Administration The Energy Information Administration ( EIA) is predicting that oil production in the Bakken will begin to decline in June. Shale producers have been reducing rigs, cutting budgets and laying off workers for months to compensate for low crude prices. Over the past year, the Bakken rig count has dropped by more than half, but until now production has remained at record levels, with the EIA reported 1.2 million barrels a day in February. Related: Record Production for Bakken In the EIA’s monthly productivity report for May, the agency reports that oil and gas production has probably peaked and they expect a 31,000 Mbbl/d drop in oil and 30,000 MMcf/d f drop for natural gas throughout June. The Bakken had 80 oil rigs running last week zero gas rigs. WTI oil prices continued to climb trading at $59.39/bbl on Friday afternoon, a $.63 […]
Is The Shale Oil Production Peak The Key Inflection Point For The Stabilization And Continual Rise Of Oil?
Summary The U.S. has lost 1 percent of its shale oil production this month. Oil production from the major U.S. shale plays is expected to fall 86,000 bpd in June of 2015. The supply of oil worldwide still is higher than the worldwide demand for oil. Has there been a production peak at the notable Eagle Ford and Bakken shale play areas? According to the most recent EIA report the former statement could yield a yes. The EIA has forecasted that oil production from the seven major U.S. shale plays which include Bakken, Eagle Ford, Utica, Niobrara, Marcellus, Haynesville and Permian, will fall by 86,000 bpd in June of 2015. This month the U.S. has lost 1 percent of its shale oil production, and most analysts believe that this is just the beginning. On Wednesday, May 13, 2015, oil rose toward its five month high. The factors contributing to […]
OPEC oil output boost keeps supply surplus despite higher demand
LONDON OPEC said its oil output rose further in April, keeping an excess supply in the market despite stronger demand and signs the producer group’s strategy of letting prices fall to hurt other producers is taking effect. In a monthly report on Tuesday, OPEC said demand for its oil this year would be 50,000 barrels per day (bpd) higher than previously thought, thanks to a slightly lower supply forecast for countries outside the group. Oil prices have almost halved from $115 a barrel in June 2014, in a decline OPEC officials have said is stimulating fuel use. The report made a small upward revision to forecast oil demand growth in 2015 and was upbeat about the outlook. "Despite the slow start in some countries, world economic growth could strengthen further as the year progresses, leading to an improvement in crude oil demand in 2015," the report said. Last year, […]
U.S. set to get more accurate oil production data: Kemp
LONDON "The data must be wrong," according to veteran oil analyst Phil Verleger, who wrote in a blistering note that the Energy Information Administration is probably overestimating U.S. oil production by 1.6 million barrels per day. Verleger argues substantially lower U.S. production is the most likely explanation for why global stocks are not rising as fast as predicted and discounts for storing barrels are narrowing ("Notes at the margin" May 11). Other reasons why the stock build is smaller and the forward price structure is firmer could be stronger demand and/or more oil stockpiling in developing countries. But if Verleger is correct, U.S. production would be only 7.7 million barrels per day (bpd) compared with the 9.3 million bpd reported in the agency’s most recent weekly and monthly statistics. The global oil market would be nearly balanced, since most estimates put the global supply surplus at between 1.5 and […]
Shale oil output at Bakken and Eagle Ford starts a descent
U.S. Energy Information Administration Key U.S. tight oil and shale gas regions. Oil production from the Bakken and Eagle Ford shale plays look like they’ve peaked and other shale plays may not be far behind. Oil production from seven major U.S. shale plays is expected to fall by a total of 86,000 barrels a day in June, according to a monthly report from the Energy Information Administration released Monday. The previous report released a month ago also showed a forecast for a fall of 57,000 barrels a day in May. Oil output at the Eagle Ford shale play in South Texas is forecast to see the biggest decline, down 47,000 barrels a day in June. The Bakken shale play, which stretches from Canada into North Dakota and Montana, is expected to see output fall by 31,000 barrels a day, the report said. That would follow forecast declines in both […]