A large part of the oil and gas industry will go into a “financial intensive care unit” over the next few months as shale producers enter survival mode, an expert says.
The hurricane of in-field activity cutbacks is moving toward landfall. Hart Energy’s Unconventional Activity Tracker fell 11 units, or 2%, this past week led by a nine-unit decline in the Permian Basin. Rig count declines were recorded in most of the major plays although the Marcellus and Utica held steady at zero change versus last week. That story was also true for the liquids-rich plays, and the traditional dry gas plays.
Survival mode has returned to the oil and gas sector, Wood Mackenzie says.
Some Argentinians want to decouple from Brent crude, a benchmark for the country, as development of its prized Vaca Muerta shale assets face continued woes.
It costs about $48.19 a barrel to produce oil in Oklahoma’s SCOOP and STACK shale plays, the highest in the United States, according to a Deutsche Bank analysis.
Joe Mills, president and CEO of Samson Resources II, spoke with Hart Energy on why his company chose to go all-in in the Powder River Basin and what Samson learned in other shale plays like the Haynesville.
This week’s rig count produced a false positive, essentially reporting the activity level in effect shortly before oil markets cratered from the OPEC + dissolution and the ensuing draconian retrenchment in E&P 2020 capex.
The Dallas-headquartered Permian Basin player said March 16 it is lowering this year’s drilling, completion and facilities capital budget to between $1.6 billion and $1.8 billion