A coworker of mine said last week that oil prices might get as low as $15. I denied this would happen, arguing that prices wouldn't fall below $40. Well loyal reader, here we are with oil at $36. Yeah, that sound you heard is my jaw dropping. What will this mean for the industry? Well, you're going to see a lot of paring down on unconventional plays. The Middle east has already slashed 4.2 million barrels of production since prices started dropping, but the world has pretty much shrugged off this gesture. We haven't heard from Chavez in a while, other that the fact that PDVSA is offering contracts to foreign investors, they pretty-please-with-sprinkles-on-top promise to play nice this time. Back in July, when oil hit $147, I remember distinctly the fear was that we couldn't get oil on production fast enough. Five months later, producers are kicking themselves for having flooded the market. E&Ps seemed so optimistic for 2008 back at the end of last year. Now many of them are dreading if they can even stay alive by the end of 2009. –Stephen Payne, Editor, Oil and Gas Investor This Week; www.OilandGasInvestor.com; spayne@hartenergy.com
Recommended Reading
Vår Selling Norne Assets to DNO
2024-05-08 - In exchange for Vår’s producing assets in the Norwegian Sea, DNO is paying $51 million and transferring to Vår its 22.6% interest in the Ringhorne East unit in the North Sea.
SLB OneSubsea JV to Kickstart North Sea Development
2024-05-07 - SLB OneSubsea, a joint venture including SLB and Subsea7, have been awarded a contract by OKEA that will develop the Bestla Project offshore Norway.
EOG: Utica Oil Can ‘Compete with the Best Plays in America’
2024-05-09 - Oil per lateral foot in the Utica is as good as top Permian wells, EOG Resources told analysts May 3 as the company is taking the play to three-mile laterals and longer.
Chevron, Total’s Anchor Up and (Almost) Running
2024-05-07 - During the Offshore Technology Conference 2024, project managers for Chevron’s Anchor Deepwater Project discussed the progress the project has made on its journey to reach first oil by mid-2024.
SM Energy Targets Prolific Dean in New Northern Midland Play
2024-05-09 - KeyBanc Capital Markets reports SM Energy’s wells “measure up well to anything being drilled in the Midland Basin by anybody today.”