An “Oil Factory” is a Novel New Extraction Method in the Oil War
Although some US oil companies are struggling with low oil prices, a new wave of innovation is hitting the oil patch, allowing for a significant reduction in drilling costs.
Category: Oil and Gas Industry
The Rebound in Oil Prices is Creating Optimism Among Drillers
Is US shale about to make a comeback?
Oil prices have rebounded strongly since March. The benchmark WTI prices soared by more than 36 percent in two months, and Brent has jumped by more than 25 percent. There is a newfound bullishness in the oil markets – net long positions on Brent crude have hit multi-year highs in recent weeks on a belief that US supply is on its way down.
Saudi Arabia Marching to Its Own Oil Production Drum Beat
According to OPEC’s latest monthly oil report, Saudi Arabia boosted its oil output to 10.31 million barrels per day in April, a slight increase over the previous month’s total of 10.29 million barrels. That was enough for the de facto OPEC leader to claim its highest oil production level in more than three decades.
A Tightening Natural Gas Market May Signal a Price Turnaround
Last Friday we finally received confirmation of where all the natural gas supply has been coming from as Cabot (COG) reported its earnings. Just like Chesapeake (CHK), they reduced natural gas output, but on a much grander scale. CHK has yet to report and will do so on May 6 providing even more color on the subject.
Can an Oil Price War Have More Than One Winner?
Even as financial commentators on CNBC are starting to come around to the idea of a bottom in oil prices, the key question for US oil producers remains one of timing. How long will the oil price slump last? Is this a relatively short-term event like 2008, or a longer term slump like the one in the mid 1980’s?
Should Saskatchewan and Alberta be in Oil Investors’ Sights?
When oil prices recover-and plenty of analysts think the climb back up will start soon-Canada’s western frontier of Saskatchewan and neighboring Alberta will ‘still have the edge‘, according to a report from TD Economics.
Depressed oil prices may have skewed the view from Canada’s oil producing west, but this will be one of the better places to bet on the oil rebound.
Media Distortions and Misconstruing Facts Appear to be Obscuring Oil Price Analysis
Last night the EIA once again capitulated on the myth that rig counts do not matter and the productivity of wells would largely offset, leaving the industry on a continuous path to higher output. The current consensus of 500,000 B/D additional growth in 2015 US production now appears very much at risk.
Misperceptions about Oil Prices – the Top 12
The upstream oil and gas industry is not a black hole. There’s no mystery wrapped in an enigma here.
The Oracle Says No to Oil
Recently, Warren Buffett has made headlines by selling all of his shares in Exxon Mobil (NYSE: XOM), the rest of his position in ConocoPhillips (NYSE:COP), and reducing his stake in National Oilwell Varco. This has people wondering if the glory days of oil investing are over.
Follow-On Risks to Oil’s Latest Minsky Moment
At the end of last year, we argued that the Minsky moment had come to oil. That after years of high prices and ideas that oil prices could only go up, there was extensive leveraging in the energy sector that broadly conceived, would have to unwind. We anticipated that this was bigger than just the $90 bln of high yield debt issued by shale producers in the past three years.
