Sat Aug 10, 2019, 08:10 PM

Time Is Almost Up For US Shale Industry

Published time: 10 Aug, 2019 14:16

A top US shale executive said that it may only be the Midland basin in the Permian that can grow production beyond 2025.

Aside from Midland, every other shale basin may be on borrowed time, with the best acreage already picked over and oil prices languishing below $60 per barrel.

It’s been a brutal two weeks for the US shale industry, clobbered by a series of poor financial results from several drillers at a time when oil prices more broadly are in freefall. The latest was Oasis Petroleum, which plunged by more than 30 percent on Wednesday, after the company said it would probably spend a little bit more than previously expected, and might produce a little bit less.

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Last week, Concho Resources admitted that one of its more promising experiments, a 23-well project, suffered from poor results because the wells were packed too closely together. The company’s share price plunged by more than 22 percent because investors realized that perhaps Concho Resources, and other shale drillers like it, may not be able to produce as much oil as expected from a given level of spending.

But the hits keep on coming. President Trump announced a new round of tariffs, scheduled to take effect in September. China responded by digging in, and letting its currency depreciate, which set off a global panic about currency wars and a slowing economy. Oil entered a bear market, down more than 20 percent from a recent peak in April. US energy stocks across the board fell to new depths.


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Reply Time Is Almost Up For US Shale Industry (Original post)
RCW2014 Aug 2019 OP
Frankenvoter Aug 2019 #1

Response to RCW2014 (Original post)

Sat Aug 10, 2019, 08:22 PM

1. I've noticed whenever the price of oil drops too low, something causes "jitters" in the market

It could be a pipeline break, a refinery glitch, a tanker being held up in the Gulf, it could be a hangnail or post nasal drip, it really doesn't matter, the main thing is the price stays up above a certain point.

It's like clockwork. As for our reserves, what happened to all the claim of us having more oil than Saudi Arabia I though scientists were never wrong, ever.Once they've "settled" something, it's "settled", and the settled science of our oil reserves was that we had oodles of it, not something that was gonna run out in quick order.

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