James Regan + 1,776 October 22, 2019 (edited) U.S. shale production growth is slowing down, and America’s shale output will likely peak in the next few years, Russia’s Energy Minister Alexander Novak said on Tuesday. We see that there is slowing activity in U.S. shale, and despite the fact that production continues to grow, growth is weaker than in previous years, Novak told reporters in Sochi today. The number of drilling rigs in the United States dropped by 160 in a year, Novak noted. The U.S. oil rig count continued to drop in the latest reporting week, according to Baker Hughes data. The total oil and gas rig count now stands at 851, or 216 down from this time last year. The total number of active oil rigs in the United States increased by 1 last week, reaching 713—this is down by 160 rigs year on year. “This is clearly a trend,” Novak said, adding that at current oil prices, U.S. shale production will not grow as fast as it did in previous years. Many factors, including financing, will determine the pace of American shale production, according to Russia’s energy minister. “In the near future, if forecasts turn out correct, we will see a plateau in production,” Novak said. https://oilprice.com/Energy/Oil-Prices/Russia-Predicts-The-Death-Of-US-Shale.html These kind of reports are now becoming a daily event, from inside the shale business, when we see the rig count this is undoubtedly the US Land Rig count although never really distinguished by Baker. The fact is that the resurgence of conventional and in particular the deepwater market is definitely upon us. Many US Major IOCs have turned to international plays in order to secure a more robust business model moving ahead in order to please investors. Higher dividends paid by many of the IOC recently is a good sign for the conventional market. Funding for CAPEX is now no longer wishful thinking. Many stacked Units are going back to work worldwide. Brasil is just starting its next phase and drilling campaigns are building strength, this coupled with the latest expected record breaking deepwater pre salt leases will do further more to fuel this long awaited resurgence. The shale bubble has burst, investors are wise to the shell game played by wall street and shoddy business models designed to trap investors, very short cycles and most of the DUCs now in play has finally managed to show the true bones of the US shale Industry, that being not a healthy long term investment, tantamount to a pyramid scheme. Now the LTO is experiencing what the conventional side of the industry has been suffering from and it's about time a happy medium prevailed and only time will tell if conventional out weighs the risks of unconventional, kind of an oxymoron really. Edited October 22, 2019 by James Regan 1 2 Quote Share this post Link to post Share on other sites
James Regan + 1,776 October 22, 2019 The first and third-largest oilfield service companies in the world saw their earnings hit in the third quarter due to the slowdown in U.S. shale drilling. Schlumberger took a $12.7 billion impairment charge related to its North American business, a rather dramatic write-down. That led to an $11.4 billion loss for the quarter, the largest in the company’s history. “That’s a sizable writedown from pressure pumping business. That just tells you the state of the North American onshore market being pretty poor,” said Anish Kapadia, founder of oil and gas consultancy firm AKap Energy. Halliburton also saw its earnings hit by the slowdown in shale drilling and the oilfield services giant shifted its focus to international markets as the signs of a shale rebound do not appear to be imminent. https://oilprice.com/Energy/Energy-General/Oilfield-Services-Face-Crisis-As-Shale-Slowdown-Worsens.html For al the hype we had to suffer for so long and how the Shale business was the end game for US oil and world domination by way of WTI, it appears to be another story at present. Is anyone shocked that it falsely bubbled due to thousands of wells waiting to be opened up by way of Fracking. It appears now that even the fracking is not cost affective and the service companies would rather stack the fracking units than run them cheap, welcome to a fair market, its a bitch pay back. Are we really surprised I ask you? Quote Share this post Link to post Share on other sites
ceo_energemsier + 1,818 cv October 22, 2019 Russia will be very happy if US shale went away. Shale is not perfect but it is a great resource for the US. Records are being broken every month, set backs happen, challenges exist and companies rise and will rise and face the challenges and succeed. Not all companies in shale are going to succeed as Gen 1 shale companies list proves. Companies are innovating, developing new techs and procedures and techs are evolving to mitigate the shale issues. EOG is now carrying out EOR with gas for shale in the Eagle Ford . Russia has spend hundreds of millions of $$$ in propaganda against hydro fracturing in the US and in Europe. Gazprom used a lobbying firm in DC and spend more than 100mil$ (some estimates are $300mil) to foment and fire up anti hydro fracturing hysteria in the US from 2010?2011-2014/15 and still probably do. If anyone wants to investigate Russian collusion and interference in US politics , then they should start one immediately on this, but they wont as it is against oil and gas and they folks (politicians) are more than happy to attack oil and gas in any way possible and will use foreign help and foreign agents and money to do that !!!! EOG Boosts Production With EOR Program In Eagle Ford Research shows the company has been able to yield up to 80% more oil in the Eagle Ford from its gas injection process. https://www.newsweek.com/putin-funding-green-groups-discredit-natural-gas-fracking-635052 https://www.newsweek.com/intelligence-putin-funding-anti-fracking-campaign-547873 https://www.dallasnews.com/business/2014/09/08/texas-railroad-commissioner-accuses-gazprom-of-trying-to-undermine-u-s-shale-boom/ https://www.centerforsecuritypolicy.org/2019/03/24/moscow-secretly-funded-us-anti-fracking-groups-is-it-now-attacking-us-energy-companies/ https://www.nytimes.com/2014/12/01/world/russian-money-suspected-behind-fracking-protests.html https://www.energyindepth.org/lawmakers-ask-probe-alleged-russian-funding-anti-fracking-groups/ 1 Quote Share this post Link to post Share on other sites
ceo_energemsier + 1,818 cv October 22, 2019 4 minutes ago, ceo_energemsier said: Russia will be very happy if US shale went away. Shale is not perfect but it is a great resource for the US. Records are being broken every month, set backs happen, challenges exist and companies rise and will rise and face the challenges and succeed. Not all companies in shale are going to succeed as Gen 1 shale companies list proves. Companies are innovating, developing new techs and procedures and techs are evolving to mitigate the shale issues. EOG is now carrying out EOR with gas for shale in the Eagle Ford . Russia has spend hundreds of millions of $$$ in propaganda against hydro fracturing in the US and in Europe. Gazprom used a lobbying firm in DC and spend more than 100mil$ (some estimates are $300mil) to foment and fire up anti hydro fracturing hysteria in the US from 2010?2011-2014/15 and still probably do. If anyone wants to investigate Russian collusion and interference in US politics , then they should start one immediately on this, but they wont as it is against oil and gas and they folks (politicians) are more than happy to attack oil and gas in any way possible and will use foreign help and foreign agents and money to do that !!!! EOG Boosts Production With EOR Program In Eagle Ford Research shows the company has been able to yield up to 80% more oil in the Eagle Ford from its gas injection process. https://www.newsweek.com/putin-funding-green-groups-discredit-natural-gas-fracking-635052 https://www.newsweek.com/intelligence-putin-funding-anti-fracking-campaign-547873 https://www.dallasnews.com/business/2014/09/08/texas-railroad-commissioner-accuses-gazprom-of-trying-to-undermine-u-s-shale-boom/ https://www.centerforsecuritypolicy.org/2019/03/24/moscow-secretly-funded-us-anti-fracking-groups-is-it-now-attacking-us-energy-companies/ https://www.nytimes.com/2014/12/01/world/russian-money-suspected-behind-fracking-protests.html https://www.energyindepth.org/lawmakers-ask-probe-alleged-russian-funding-anti-fracking-groups/ https://www.cnsnews.com/news/article/craig-bannister/republicans-probe-russian-interference-us-energy-market-fossil-fuel Quote Share this post Link to post Share on other sites
ceo_energemsier + 1,818 cv October 23, 2019 and this is a threat to the Russkies!!! _________________________ The United States now exports crude oil to more destinations than it imports from https://www.eia.gov/todayinenergy/detail.php?id=41754 1 Quote Share this post Link to post Share on other sites
James Regan + 1,776 October 25, 2019 https://oilprice.com/Energy/Crude-Oil/Oil-Rig-Count-Plunges-To-Lowest-Level-Since-2017.html 1 Quote Share this post Link to post Share on other sites
James Regan + 1,776 October 25, 2019 https://oilprice.com/Energy/Crude-Oil/Oil-Rig-Count-Plunges-To-Lowest-Level-Since-2017.html Quote Share this post Link to post Share on other sites
James Regan + 1,776 October 25, 2019 https://oilprice.com/Energy/Crude-Oil/Oil-Rig-Count-Plunges-To-Lowest-Level-Since-2017.html Quote Share this post Link to post Share on other sites
James Regan + 1,776 October 25, 2019 https://oilprice.com/Energy/Crude-Oil/Oil-Rig-Count-Plunges-To-Lowest-Level-Since-2017.html Quote Share this post Link to post Share on other sites
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