周永樂

U.S. crude output increased last week-why and what next?

Recommended Posts

(edited)

My guess is that the increase in oil production in the US is due to companies resuming production on shut-in wells. Rig levels are still highly subdued in the US, so I assume production declines will kick in soon. I think that we will see that production begin to taper off again by the end of the summer/early fall as well declines kick in.

As for what next, it is a guessing game. If oil continues to hover around $40/barrel, I could see shale producers starting to increase rig/completion rig counts to keep production flat. But that is just a guess.

Edited by Junior Geo
  • Like 1

Share this post


Link to post
Share on other sites

12 hours ago, Junior Geo said:

My guess is that the increase in oil production in the US is due to companies resuming production on shut-in wells. Rig levels are still highly subdued in the US, so I assume production declines will kick in soon. I think that we will see that production begin to taper off again by the end of the summer/early fall as well declines kick in.

As for what next, it is a guessing game. If oil continues to hover around $40/barrel, I could see shale producers starting to increase rig/completion rig counts to keep production flat. But that is just a guess.

Yes.Maybe shale companies need to pay the increased debt accumulated in the decades. And rigs will have a limited rise.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
You are posting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.