"Undeniable" Shale Slowdown?

[ceo_energemsier + 1,818]

Oh my oh my, TECHNOLOGY, TECHNOLOGY!!!!

 

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Artificial intelligence firm gets second funding round for shale

 

Artificial Intelligence (AI) is gaining favor across the oil patch. OAG Analytics, an AI-specialist focused on oil and gas, announced this week it has received a second round of strategic funding from Rice Investment Group. Rice is a $200 million strategy fund based in Pennsylvania that targets oil and gas.

OAG said funding will be used to help customers add AI to the their asset portfolios. Subsurface engineers and scientists use AI to organize data and run billions of simulations before deploying capital, OAG said. OAG’s system provides a cloud-based platform that has interactive visualizations. The technology has already been used in the Permian, Eagle Ford, Bakken, Anadarko and Haynesville shale plays. According to the company, U.S. operators have optimized more than $10 billion in capital expenditures using OAG’s tech.

"Our industry is entering the next phase of the shale revolution by moving to full-field development. As such, we need the next

generation of analytical capabilities to maximize capital efficiency," said Derek Rice, partner at Rice Investment Group and Director at OAG. "Large-scale development optimization requires an in-depth understanding of hundreds of uncorrelated data points, which OAG provides through data management and advanced analytics to support profitable decision making. We are thrilled to partner with OAG's team, and believe our insights and experience as an operator will continue to add value to the platform," Rice said.

OAG was founded by Luther Birdzell, an entrepreneur, data scientist and engineer focused on energy efficiency, AI and self-service machine learning.

[Top Oil Trader + 469]

First of all, didnt bother mention it here, but last year created my own site, which has the latest news from OPEC and other big sources US, Europe, Russia, Canada, Middle East, with no input from any analysts. Gives me up to date information, many times the news i see, is no where else to be found. But i dont really rely on that for the price predictions i do. WTI after it will hit 68.68, will drop a bit and then hit about 74. Osama happy you are ok, my advice for you stay away from the Tikka, wink.

[D Coyne + 305]

On ‎4‎/‎20‎/‎2019 at 1:27 AM, Tom Kirkman said:

In my view, Brent needs to stay at or below $70 and WTI needs to stay closer to $50 or else the oil price rollercoaster will start up again.

● $60+ WTI is unsustainable, in my view.  $50-ish seems to be the Goldilocks zone for WTI.

● $75+ Brent is unsustainable, in my view.  $70.00 seems to be the perfect, magical Goldilocks zone for Brent.

Moving too much higher or too much lower from these numbers for WTI and Brent will likely throw out of whack the current, wonderful, suitable balance between most oil producers and most oil consumers.

Oil Traders and oil producers, please don't get greedy and mess everything up.

Remember not long ago, the mantra of oil prices being "lower for longer" and "$40 forever"?

Those mantras just a few years ago were the direct result of oil producers and oil traders getting too damn greedy and choking the oily goose for a few years.

● $70 Brent and $50 WTI, please.

● Balanced, suitable, optimum, please.

Tom,

Why the $20/b Brent/WTI spread, it seems in the recent past (most recent 10 years) the spread has been about $7/b.  For the most recent 3 years the average spread was about $4/b.

So if your $70/b Brent price is correct, WTI should be more like $63 to $67/b.  Unless there is a compelling reason that the spread should change from it's historic level.

 

[ceo_energemsier + 1,818]

The Permian is not played out, according to Regina Mayor, global sector head of energy and natural resources for KPMG, who made the statement in a recent television interview with Bloomberg.

“What the industry is proving is that the Permian is not played out yet,” Mayor said in the interview, which was published on Friday last week.

“I keep getting asked ‘is the Permian played out?’ and I keep saying no. Permania is alive and well and I think it’s here to stay,” Mayor added.

In a separate television interview with Bloomberg earlier this year, Fatih Birol, executive director at the International Energy Agency, said “we have not seen the full impact of the shale revolution yet”.

“[There is] more to come both for oil and gas and it will have huge implications for the oil industry, gas industry and the markets,” Birol told Bloomberg in the interview.

“There was a major problem in [the] United States in the Permian basin. It is a logistical problem, the pipe capacity was not enough to bring the oil to the markets. And now, as of end of 2019 this problem will be solved with the new construction of the pipelines,” he added.

Last month, Texas Independent Producers & Royalty Owners (TIPRO) Association President Ed Longanecker told Rigzone “we will continue to see oil and natural gas employment growth in the Permian basin this year”.

As of March, TIPRO was tracking over 1,000 open positions in the upstream sector in the Permian, including Texas and New Mexico. The full oil and natural gas industry in the Permian - including upstream, midstream and downstream - had approximately 2,700 open positions as of March, according to TIPRO.

Mayor has over 25 years of experience delivering large-scale business and technology changes to major energy companies around the world and serves as the lead partner for several of KPMG’s key Energy clients, KPMG’s website states.

[ceo_energemsier + 1,818]

Tom Petrie, chairman of boutique investment banking firm Petrie Partners LLC, addressed the sway OPEC still holds on the world and the effect Permian Basin producers have on the group.

In our final Permian perspectives segment, Hart Energy’s Jessica Morales spoke with Petrie at the recent DUG Permian Basin Conference in Fort Worth, Texas, about where the Permian Basin fits in the “new world order” when it comes to oil production.

“[The Permian Basin] has become the most important factor in the most recent growth of U.S. output and that is really remarkable, because it has now taken us to meaningfully higher levels than we ever achieved in the past,” he said.

Petrie said the previous record for U.S. oil production was between 9.7 million and 9.8 million barrels per day in 1969 before beginning to decline for decades.

“But here we are now, producing at more than 11 million barrels a day, close to 12 [million barrels a day], with some potential for it to grow further,” he said. “And that puts us at a higher level of output than other world producers—Saudi Arabia and Russia.”

Petrie also discussed the collapse of Venezuela oil production and other geopolitical events that could possibly affect global oil markets.

If you missed any of the Permian Perspectives series you can view them at the links below:
HART ENERGY CONNECT: Floyd Wilson On Past, Future In Wildcatting
HART ENERGY CONNECT: Diamondback CFO: “Money should flow to the Permian”
HART ENERGY CONNECT: Political Challenges Facing Permian Basin Producers
HART ENERGY CONNECT: Noble Royalties CEO On Permian Basin Risk, Rewards

[ceo_energemsier + 1,818]

More than 620,000 miles of new oil and gas wells will be drilled over the next five years, according Rystad Energy’s latest forecasts. That’s enough to get to the moon and back with distance to spare.

The energy research company predicts that the number of onshore and offshore oil and gas wells drilled globally will increase to around 65,000 this year. Activity levels are then forecasted to remain around this level through 2023.

“North America will be in a league of its own thanks to the shale boom. Nearly six in ten new wells on the continent will be drilled in shale basins,” Erik Reiso, head of consulting at Rystad Energy, said in a company statement.

“These wells are typically longer than other supply segment wells. This helps explain why shale wells represent around 80 percent of the distance drilled in North America by 2023,” he added.

Reiso also revealed that the top four offshore operators will add a quarter of new offshore wells going forward, whereas the top ten in the onshore market represent around one-third of new wells from 2019 to 2023.

“[This implies] a much more diversified player landscape,” Reiso said.

Earlier this month, Rystad Energy revealed that free cash flow for public exploration and production companies “skyrocketed” last year to almost $300 billion.

“For these players, 2019 could turn out to be another blockbuster year,” Rystad Energy said in a company statement at the time.

Rystad Energy is an independent energy research and business intelligence company providing data, tools, analytics and consultancy services to clients exposed to the energy industry across the globe. The company is headquartered in Norway.