Dozens of US companies announce resumption of shale oil production

After testing the $ 40 mark, oil prices fell again. The fall is still small. Currently, a barrel of Brent crude is trading in the range of $ 39-39,3.

According to the head of the research department of the National Bank of Australia Lahlan Shaw, the adjustment of oil prices in the direction of their next decline is associated with the "position of Russia and Saudi Arabia." The expert says that so far it has not been possible to set up a mechanism that would clearly regulate the rules for reducing oil production. According to L. Shaw, if such a setup fails to be implemented in the near future, the reduction in oil production will continue at best until the end of June, after which countries can again begin to increase oil production.

It is noted that the supply of crude oil may increase in volume already in July. That is why the markets are reacting with a new (albeit small) reduction in oil prices.

Against this backdrop, reports from the United States are coming that as soon as the price of oil reached the mark of $ 40 per barrel, several dozen companies returned to the shale production process.

In particular, EOG Resources announced the increase in oil production, saying that the forecasts for the second half of 2020 are favorable.
Large Parsley Energy returned to the oil production process, having closed 400 (!) Of its wells since March of this year.

If the shales do not resume their production, this will cast doubt on the very possibility of paying off loans.

At the same time, US shale companies, in fact, ignore questions about how their new increase in oil production fits into the US obligations assumed under the OPEC + deal. Recall that Washington for the first time in stories stated his readiness to reduce oil production “together with other producing countries”.

Although it is well known that Washington is taking its international steps solely in its own interests, which means that as it entered into the OPEC + deal, it can also withdraw from it at any time. At the same time, anyone can be identified as the main culprit: Russia, Iran, Saudi Arabia.

Comments

[KVU-NSVD]

Some are increasing, but those who "have not debugged the mechanisms" are to blame. With prices stabilized, the Americans will be the first to screw the cut deal, which is already happening.

[mitroha]

So of course they returned, so at least some amount of daily losses will be returned, and from the budget they will throw more subsidies.
Otherwise, only bankruptcy

[hydrox]

Nonsense is all this: after all, there will come a moment when Russia will not sell its oil tanker to the Yankees - what will happen when their oil expansion in the EU stops?
And yes, this will not be an economic, but a political step by Russia, a kind of undeclared (and maybe even announced!) Sanctions, as a payback for "exclusivity" (and "superiority of wealth"!).

[kjhg]

Quote: hydrox

because there will come a time when Russia will not sell its oil tanker to the Yankees - what will happen then when their oil expansion in the EU stops?

Let's guess: omega will fall apart, the dollar will collapse, Russia will become a superpower?
And does Russia send many oil tankers to the USA? And then after all, I remember, Zhirinovsky also threatened to collapse the dollar, having sold 150 billion dollars of gold and foreign exchange reserves of Russia. Well, this is a little fat! What to take from him? His electorate has roughly the same level of aikyu.

Quote: hydrox

And yes, it will not be an economic, but a political step of Russia

Well, of course, the omega immediately begs for forgiveness. How else? They will not have any leverage for an answer. You should at least send a letter to the president with your thoughts on how to bring America to its knees. And then after all, SUCH ideas disappear in vain

[The leader of the Redskins]

So the production of shale oil in America, even here, at VO, was "buried" several times, and even from irons and stoves - constantly!)))

[Artyom Volgin]

Americans will not give up shale oil and shale gas, never.

[hydrox]

Who is to blame that for the majority it doesn’t reach the point that this is a cyclical process and depends only on the current (trending!) Oil price!
And to bury - is a synonym to "bankrupt" the earner - is that also not going to come ??

[Petr7]

"bury" the Economy on a site dedicated to Weapons - yes, you are clearly a Joker
But seriously, THERE WAS NOT A SINGLE article really telling about the work of the Economy and revealing NUES. There was a lot of emotions, but NOBODY gave real numbers - it is NOT FAVORABLE, people will start to THINK, and the creators of the site do not need this (I somehow decided to see who it belongs to (it was before 2014) - Russia that moment was NOT there. Ukraine was. Belarus was. but not Russia!)

[hydrox]

Yes, not a joker :: a weapon without an economy is FICTION!
And a country without an economy is also FICTION!
And if Russia does not conduct a wave of socio-economic reforms in the coming months, it will also become FICCIA.

[Petr7]

and who says that Russia does not make reforms? But let Navalny do it "socio-economic". Others are more important now

[Interlocutor]

And does Russia send many oil tankers to the USA?

600 tons of heavy oil last week.
And yes. do not forget, as soon as the tanker is poured with oil, the oil immediately magically becomes the oil of the buyer ...
By the way .... The same thing happens to gas

[kjhg]

Are you kidding or serious? 600 tons is 30 fuel trucks or 10 railways tanks! They are not enough to provide for a week even a dozen gas stations! At such a pace, one tanker in the port will be filled for half a year.

[Interlocutor]

Are you kidding or serious? belay 600 tons - this is 30 fuel trucks or 10 railways tanks! They are not enough to provide for a week even a dozen gas stations!

YES what for them to fill our oil. They are sick))))). Heavy oil is coming into the industry. )) Plastic and other tinsel .... We, Iran, Venezuela. Cuba does not count. The rest produce light. And here it’s difficult, but for that. They bought the same 600 earlier in the quarter, but here in a week.

[kjhg]

Quote: Interlocutor

Heavy oil is coming into the industry. )) Plastic and other tinsel ...

Even so.

Quote: Interlocutor

They bought the same 600 earlier in the quarter, but here in a week.

I tell you again it will take 100 years to fill an average marine tanker with a displacement of 000 tons at such a pace! And if it will be a large displacement tanker 450 tons?

[Interlocutor]

I don’t care about the tanker. The main purchase. Do not confuse.

[Interlocutor]

I’m telling you once again that it will take 100 years to fill up the average marine tanker with a displacement of 000 tons! And if it will be a large tanker with a displacement of 3,5 tons?

Sorry.
In the first half of May, American companies bought five million barrels of Urals - a volume comparable to the total export of oil from Russia to the United States since the beginning of the year.

[post]

For the first quarter, 56 million barrels https://tass.ru/ekonomika/8601863

[hydrox]

Thank you for the awareness that delivers the truth to the illiterate: there above this kjhg (Dmitry) jumps out of his clothes, protecting the unfortunate Yankees from Urals oil.

[Petr7]

Correctly said earlier, "heavy" oil is precisely "industrial", but besides, it is also a "solar oil" for auto transporters. and any heavy equipment, including military.
And precisely for this reason, the USA, in no way, can refuse Russian oil, as well as Russian rocket engines - there is NO replacement

[hydrox]

Guessing further: this is a good fun for people at VO, especially from sources for which the economy is unattainable, like the periodic table

[Petr7]

because the moment will come when Russia will not sell its oil tanker to the Yankees

Venezuela is also nearby. and there is the same heavy oil as Russian .. - because it was precisely because of this that the United States took up arms against it

[knn54]

Initially, the Yankees took Mexico to the company.
And the second point, the United States took obligations, but, for example, Texas did not.
So no wonder.

[Civil]

Scoundrels! They want to take away our hard-earned dollars for our mother oil!

[antivirus]

more interested - and I have already asked the question many times: what does HE have to do with oil and gas? - founders of gas companies? in one basket with Echo of Moscow?
"the boss is all gone ... gas is getting cheaper, Trump is bringing troops to the fields ...".
Not a single report on the military towns and the life of the military - the rejection of "their own" officialdom is good, but the combined editorial office with the Gazovy Vestnik magazine - how?

[svp67]

Against this backdrop, reports from the United States are coming that as soon as the price of oil reached the mark of $ 40 per barrel, several dozen companies returned to the shale production process.

The main thing is that this oil does not go abroad to the United States and still the United States remains strongly dependent on "normal", but "heavy" oil ... which they have to buy

[rocket757]

Economists, it seems, began to include ... but it was not very immediate. The consequences are still there and they will decrease so far and nowhere.

[Lord of the Sith]

adjustment of oil prices in the direction of their next decline is associated with the “position of Russia and Saudi Arabia”

Here are the real players in the oil market. Moreover, judging by the latest news, the Saudis lost ground.
This is a real, well-deserved victory for Russia))

[Crowe]

Victory? Shale mining in the United States did not die, no matter how they tried - victory, why ... Sechin - glory! Let the glorious victory in the oil war over the damned imperialists live for centuries! We lost twice the money, but that’s nothing, if only the shale have died in America ... But they have not, have not died ...

[donavi49]

In order for shale oil companies to die, it is necessary to keep oil below the profitability threshold for about 3 years, it is better to significantly lower it - 15-20 dollars. Then people will be retrained (they will go to sellers in Wallmart, pizza delivery men, etc.), the equipment will be sold, and all kinds of permits will be canceled.

However, after 3 years, if the price jumps to 50+. That new shale will begin to form. Gather equipment, people, old intelligence data, permits, and new oil from new companies will already go for the year.

Such short periods (less than six months) is a return to production in 1-2 months at favorable prices.

[Vladimir_6]

Quote: Crowe

Victory? Shale mining in the United States did not die, no matter how they tried - victory, why ... Sechin - glory! Let the glorious victory in the oil war over the damned imperialists live for centuries! We lost twice the money, but that’s nothing, if only the shale have died in America ... But they have not, have not died ...

So Putin and Trump have agreed.
From Trump's interview with Fox Radio:
“Well, he (Putin) helped us with the oil industry, which is good for him too, and we raised it and now we can save millions of jobs in Texas, North Dakota and other places in Oklahoma. Now production is stable there. They ( oil prices. - Ed.) went down to zero, it would cost five million jobs. But in general, it's not a question of what he did. It is a matter of common sense, "Trump said.
Speaking about the events at the G7 summit, Trump stressed: "Half of the meetings are dedicated to Russia, if he was there, it would be much easier to find a solution."
"We are sitting there and wasting time, because in order to finish the case, someone has to call Putin on various issues. So I say: he needs to be in the hall," the US president added.
http://alternatio.org/events/all/item/81029-hvatit-obryvat-telefon-tramp-dohodchivo-obyyasnil-pochemu-bez-putina-nelzya-na-vstreche-g7

[Lord of the Sith]

Do you know what Russia specifically sought? I personally see that Russia reliably clicked the hegemon and the Saudis on the nose. But was there a question in eliminating the shale industry? In my opinion, no.

[Morrow]

It stood. All propagandists spoke about this.

[Petr7]

from what the propagondons said, it does not mean that it was! And Trump and Putin are not only Politicians, but also the most important Economists of the Planet, and one and the other for the Strong State (naturally in their understanding, but with the concept related to partners / opponents)
The most remarkable. It `s that. that Britain wasn’t even taken sideways - and the queen is the Richest Woman on the planet!

[Artyom Volgin]

Quote: Crowe

And here they are, not dead ...

And do not die. They put too much into it.

[Mountain shooter]

.If shale workers do not resume their production, this will cast doubt on the very possibility of paying off loans.

This is the key phrase. Or pretend that you have production, and you are "on top" ... And you will be refinanced the loan that you serve by paying interest ... or bankruptcy.

[Pvi1206]

my assumption came true, for which I was minusted earlier ...

[pereselenec]

Dozens of US companies announce resumption of shale oil production

But after all, it was recently written here that a bunker multi-outlet destroyed the shale sector in the USA?

[smaug78]

They didn’t write, but propagated cheers ...

[post]

where to read?

[pereselenec]

Quote: forpost

where to read?

https://topwar.ru/168852-koloss-na-slancevyh-nogah-neftedobyvajuschaja-otrasl-ssha-rushitsja.html
https://topwar.ru/155042-slancevyj-puzyr-v-ssha-na-grani-grandioznogo-buma.html

[post]

The articles set forth only a statement of the current state of affairs, but where about the fact that - "" bunker multi-port has destroyed the shale sector in the United States? "" ???

[Morrow]

Everywhere, in all the media

[post]

In all the media this has not happened

[Artyom Volgin]

He will not be able to destroy this sector, since none of the US financial tycoons will allow him to do this.

[Petr7]

My friend, yes, how to do it - nafig - it’s elementary, just give the oil a price of $ 30 and below and they themselves will destroy everything else with squeals. what is cool! For shale, a price of 40-50 per barrel of oil is needed. otherwise it is FAILURE, and for the Russian, the minimum price for Profit is 20 bucks for the same barrel

[V1er]

Now they will increase production, the price of oil will again fall to 20-30 bucks, and again they will begin to yell how hard it is to live, what needs to be agreed.

[Alexey RA]

Quote: V1er

Now they will increase production, the price of oil will again fall to 20-30 bucks, and again they will begin to yell how hard it is to live, what needs to be agreed.

Agree? Yes, the United States will immediately start screaming that it is necessary to impose sanctions on all non-American oil producers - so that they reduce production and provide the American oil industry with profit (ideally, it is generally forbidden for non-Americans to extract oil and trade it).
How to play well in a market economy, holding on hand a club of government agencies.

[Petr7]

small clarification. The USA produces ONLY LIGHT oil and the UAE is the closest competitor. There is no heavy oil in the USA, and that's why they buy it from us.

[smaug78]

Washington takes its international steps solely in its own interests

well done, what to say. But does Russia think about others or all the same about itself?

[rotmistr60]

Dozens of US companies announce resumption of shale oil production

For a long time? Interestingly, did those who had already managed to declare bankrupt also stirred somehow? The price will fall and again in a circle. Moreover, the author correctly noted

anyone can be identified as the main culprit: Russia, Iran, Saudi Arabia.

[Nitarius]

It's simple .. Companies started to Ignore Trump's Order and Obligations ... taken by the USA! they look more like Anarchy today .. everyone does not care!

[atalef]

Quote: Nitarius

It's simple .. Companies started to Ignore Trump's Order and Obligations ... taken by the USA! they look more like Anarchy today .. everyone does not care!

and in the US, the government cannot tell private traders.
There are too strict antitrust laws.

[Morrow]

And where can you read about Trump's obligations?

[Operator]

These are dying convulsions - now Russia and KSA will also increase production "a little" and the few American companies that are lucky with the cost of shale oil (~ $ 40 per barrel) will again be forced to crawl under the bench.

[123456789]

Quote: Lord of the Sith

This is a real, well-deserved victory for Russia))

The fruits of which, as after the Second World War, will be used by the USA

[123456789]

Quote: donavi49

In order for shale oil companies to die, it is necessary to keep oil below the profitability threshold for about 3 years, it is better to significantly lower it - 15-20 dollars.

And after three years, either donkey or padish. Already have technology for $ 16

[Mavrikiy]

Dozens of US companies announce resumption of shale oil production

Yes, they won't die? Looks like a fountain with "living water" beats in the USA

[NF68]

Rumors that shale oil production in the United States will "die" are untrue. At least for now.

[Sergey Medvedev]

The volume of oil is not announced. How much was the decrease, how much is now increasing. It’s hard to say something.

[Negruz]

Information from oil and gas professionals, and not from topvar lovers:
"Oil production in the United States for the week from May 23 to May 29 decreased by another 200 thousand barrels per day, as follows from the materials of the Energy Information Administration (EIA) of the Ministry of Energy of the country ... Earlier, the EIA predicted that shale oil production in the largest oil and gas producing regions of the United States in June, compared with May, will decrease by 2,5%, or by 197 thousand barrels per day.
The largest decline in production is expected in the Permian basin - by 87 thousand to 4,29 million barrels per day. Production at Anadarko, according to EIA, will be reduced by 28 thousand to 434 thousand barrels per day. "

[Morrow]

And how much is the production now?

[Morrow]

At the same time, US shale companies, in fact, ignore questions about how their new increase in oil production fits into the US obligations assumed under the OPEC + deal. Recall that for the first time in history, Washington announced its readiness to reduce oil production “along with other producing countries”
Or you can have a document signed by Washington.

[Petr7]

but it is interesting how they were able to "open" the wells when they were closed at the pace of "the station leaves", something is wrong here

[Negruz]

Well, the news is practically "for now" ...
Link to the baker ...
Above left is the number of active rigs in the USA, top right is a week ago ....
In general, amateur newsmen should not meddle in the field of professionals
https://m.ru.investing.com/economic-calendar/baker-hughes-u.s.-rig-count-1652