U.S. shale industry tempers output even as oil price jumps
S E E D E D C O N T E N T
June 28 (Reuters) - Even with oil prices surging toward $75 a barrel, U.S. shale producers are keeping their pledges to hold the line on spending and keep output flat, a departure from previous boom cycles.
This year's run up in crude prices, and oil output curbs imposed by the OPEC+ producers group, historically would have triggered a drilling boom. But investors are demanding financial returns over more volume and energy financiers are shifting to renewables, so shale firms are determined to stay disciplined.
"I'm still confident the producers will not respond" to the run-up in prices, said Scott Sheffield, chief executive of Pioneer Natural Resources (PXD.N), the largest producer in the Permian Basin shale field. A focus on shareholder returns has kept spending low, he said in an interview with Reuters.
Last week, benchmark U.S. crude futures traded above $73 a barrel, the highest since October 2018. Back then there were 1,052 U.S. rigs drilling but today there are much less than half that many: around 470, according to Baker Hughes data.
Shale output remains well below the January 2020 peak of 9.18 million barrels per day (mbpd), with production from the seven largest fields this month running 7.77 mbpd, or 15.4% below that level, according to U.S. government data. Overall U.S. first-quarter oil production averaged 83% of last year’s peak. …
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As much as those on the right will choose to blame the current rising of prices on today’s administration, they should really set their sights on the domestic producers who are now trying to recoup the losses brought on by the pandemic. Shareholders count, if you are not one of them, you do not.
This has nothing to do with a pipeline not being built nor some Alaskan wilderness not being exploited.
Wait for those who will blame the pipeline not being finished on anything but the actual reasons.
That's true, but the ongoing uptick of the price at the pump and home heating oil and natural gas will affect the poor the most. Since it's happening on Biden's watch, he will get the blame
... and the 'honest' media will drive it home.
No, the un-honest media will somehow blame it on Trump.
There are 2 articles linked to, both from the radical bastion of Marxism, Reuters. Trump is not mentioned in either.
At the start of the Pandemic, Jan 2020 there were 790 oil and gas wells operating in the US. At the end of May 2021 there were 457.
Pretty much explains the raise in prices.
Nobody was buying gas, that would be my guess
Let's not forget that OPEC cut its production by 8 million barrels per day.
I am employing a wait and see agenda before panicking and using plastic cups to horde gasoline in.
There is an absolutely fun Serbian film about stealing gasoline from Russians entitled Black Cat, White Cat ... get it if you can.
Too funny.
I am going to have to find it.
Netflix in the US may still have it.
BTW, everyone in the film has rotten teeth from gargling gasoline in order to test its octane level.
I noticed that in the trailer - but can't find it anywhere streaming. I will have to dig deeper when I get home.
I only found it on Amazon 15$ + shipping.
Damn - I hate to buy movies nowadays.