FormulaE-2

Spectre Haunts OPEC Deal: How Fast Will U.S.Shale Come Back?

lweb.es/f2501 12.26.2016

iconAfter the biggest oil-market deal in a decade, OPEC faces a new balancing act in 2017: boosting prices without igniting shale. But the biggest threat to OPEC’s plan could come from within: if Nigeria and Libya were to reach their potential next year, then their additional barrels would almost wipe out OPEC’s supply cuts; and Iran could be making up for several years of sanctions. Another challenge could come from the now leaner and more efficient U.S. drillers – a bigger boost in prices could mean a million-barrel shale surge.

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USGS: 20 Billion Barrels Of Oil In Wolfcamp Shale Formation

lweb.es/f2222 12.05.2016

iconThe Wolfcamp shale in the Texas’ Permian Basin province contains an estimated 20 billion barrels of oil, 16 trillion cubic feet of associated natural gas, and 1.6 billion barrels of natural gas liquids. “The fact that this is the largest assessment of continuous oil we have ever done just goes to show that, even in areas that have produced billions of barrels of oil, there is still the potential to find billions more,” said Walter Guidroz, program coordinator for the U.S.Geological Survey Energy Resources Programme.

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The Permian Outstripping Rival U.S. Oil Producing Regions

lweb.es/f1821 11.11.2016

iconVery informative charts help illustrate the extent to which the Permian basin is outstripping its rivals in terms of investor interest and deal flow. Confidence is not only illustrated in merger and acquisitions activity but also in how much companies are currently willing to invest in their own future. Capital expenditure plans are lower and less bullish than a year before, but operators are still displaying a greater level of confidence in being able to fund robust capex spends.

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US Frackers Keep Adding Barrels

lweb.es/f1428 9.20.2016

iconNimble U.S. shale oil producers continue to show an uncanny ability to squeeze more and more crude from new wells, allowing them to do more with less as they try to weather another dip in oil prices to $40 a barrel, so they are still seeing output gains from improved well designs and fracking techniques. The pace of innovation is increasing. Pioneer Natural Resources said it was introducing its third generation of well completion techniques, called version 3.0, using even more sand and water than the super-sized volumes introduced as version 2.0 earlier in the price crash to pull more oil out of rock. For its part, Devon Energy Corp has cut costs to drill and complete new wells by 40 percent and plans to cut $1 billion in costs this year.

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Oil’s ​R​ecovery ​I​nches ​H​igher as ​F​raclog ​A​waits ​P​rice ​T​rigger

lweb.es/f906 4.30.16

iconOil’s rebound from the lowest level in more than 12 years may face an abrupt halt as prices near a level that could trigger a wave of new U.S. shale production. Futures in New York have advanced more than 60% since the February low and closed at $43.73 a barrel Friday 22nd March​, the highest in five months, nearing a $45-level IG Ltd. says makes some shale plays profitable. Drilled, uncompleted wells could return 500,000 barrels of oil per day back to the market, according to Richard Westerdale, a director at the U.S. State Department’s Bureau of Energy Resources. The inventory of wells is known as the fraclog.​ ​ “Once we start approaching $45 and above, the risk of a much sharper pullback starts to increase as a lot of shale becomes profitable again,” Angus Nicholson, an analyst at IG in Melbourne, said by phone. “It’ll bring more supply back into the market. This happened last year when a swathe of output hit the market after a price gain and subsequently led to oil dropping to record lows.”

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ONGC Plans to Drill 17 Exploration Wells in India’s Shale Oil, Gas Blocks

lweb.es/f901 4.30.16

iconOEF REVIEW:India’s state-owned Oil and Natural Gas Corp. Ltd. (ONGC) intends to spend approximately $105 million (INR 7 billion) to drill up to 17 shale oil and gas wells located on the country’s east and west coasts. ONGC is seeking permission to drill 11 exploratory wells for shale oil and shale gas in Cambay basin at Mehsana, Ahmedabad and Bharuch districts of Gujarat, 1 prospect in Cauvery basin at Nagapattinam in Tamil Nadu and five wells in Krishna-Godvari Basin at East and West Godavari districts of Andhra Pradesh. If the proposal is approved by the government, it will be the first time that ONGC has embarked on shale exploration on such a large scale.

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OPEC has failed to stop US shale revolution admits energy watchdog

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iconOEF REVIEW:The current crash in oil prices is sowing the seeds of a powerful rebound and a potential supply crunch by the end of the decade, but the prize may go to the US shale industry rather Opec, the world’s energy watchdog has predicted. America’s shale oil producers and Canada’s oil sands will come roaring back from late 2017 onward once the current brutal purge is over, a cycle it described as the “rise, fall and rise again” of the fracking industry. “Anybody who believes the US revolution has stalled should think again. We have been very surprised at how resilient it is,” said Neil Atkinson, head of oil markets at the International Energy Agency.

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Texas toughness in oil patch shows why U.S. still strong at $30 a barrel

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iconOEF REVIEW:A handful of shale patches in the state, which would be the world’s sixth-largest oil producer if it were a country, are profitable with crude below $30 a barrel, according to an analysis by Bloomberg Intelligence. In the Eagle Ford’s DeWitt County, which produced more than 100,000 barrels of oil per day in November, the average well can be profitable with U.S. benchmark crude at $22.52 a barrel, $4 below the lowest level this year. Drive 200 miles southwest to Dimmit County, and drillers need $58 oil. The wide range of break-evens illustrates one reason why shale production from exploration and production companies has been more resilient than expected, filling storage tanks in the U.S. to levels not seen in 85 years.

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Mainland Europe shale gas: What now?

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iconOEF REVIEW:The shale gas boom has proved to be a game changer for the United States economy, bringing about an era of cheap natural gas that has helped to make the country’s industry more competitive. Europe has also been seen as a future shale gas region in recent years, but a Wood Mackenzie survey of global shale gas drilling activity highlights only three European countries – Poland, Ukraine and the UK – as having any shale gas wells scheduled for 2016.

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