Commodity Trade Mantra

Posts Tagged ‘Shale Plays’

Can Crude Oil Prices Continue To Rally Like This?

Japanese inflation data mirrored that of Germany, and was flat MoM, with YoY inflation dropping to +0.2%. In terms of inflation, the US is in a similar position to both Germany and Japan, in that should oil prices stay around current levels, it will too see inflation data coming in as flat as a beaver’s tail by year-end.

Oil Rig Count Decline Is Not Sufficient To Slow US Oil Production: Goldman

Goldman Sachs: Rig count decline is still not sufficient to achieve the slowdown in US production growth required to balance the oil market. We reiterate our view that oil prices need to remain lower in the coming quarters in order for the announced capex guidance and rig reduction to materialize into sufficiently lower production growth.

What The Rig Plunge Really Means For The Price Of Oil

The market fails to appreciate that the relationship between rig count and oil production can be deceptive. Headline rig count declines may look impressive, but as we look at the data, much of the drop in oil rig count has come in low yielding rigs. The most productive rigs will likely remain as long as possible.

U.S. Shale Boom May Come To Abrupt End

I believe US oil production will fall sooner & more sharply than many analysts predict. Average well productivity has decreased by one-third. Every rig taken out of service today has more than 3 times the impact on daily production as before pad drilling became common. A good thing for oil price recovery but maybe not for future shale plays.

US Shale Under Pressure From More Than Just Low Prices

Denton’s ban prohibits drilling within the city limits and joins other local referendums passed. The lasting effect of such local referendums is yet to be seen, but they come at a difficult time for an oil and gas industry. New well permits issued in November fell nearly 40%t from the previous month which indicates a slowdown in shale plays across the US.

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