#Oil Price Crash Shattered Production Plans For US Shale, But There's Still One Hotspot Where BigOil Still Willing to Spend

Amid Oil Price Crash, Guyana and Suriname spared the ax.

Oil majors may be slashing spending and deferring development plans across the globe, but they remain committed to developing the newest offshore oil finds in the heart of Latin America.  

This from OilPrice.com: 

Long-Term Potential in Offshore Oil Projects 

These operators continue to view the oil discoveries offshore Guyana and Suriname as high-quality resources that deserve the full attention and financing even as oil prices are sitting below $30 a barrel. Abundant quality offshore resources could pump oil for decades, compared to a year or two of the wells in the U.S. shale patch, which are much cheaper and faster to design, drill, and develop, but which deplete much quicker than large offshore reservoirs.
For this reason, it shouldn't come as a surprise that Exxon said at the earnings call last week that it would be cutting production in the Permian, yet going full-steam ahead with the developments in Guyana.

ExxonMobil excludes offshore Guyana projects from capex cuts

Exxon Doubles Down on Guyana's Huge Oil Discoveries

"Guyana remains an integral part of our long-term growth plans and as such is a high priority," Exxon's chairman and chief executive officer Darren Woods said on the call. 


Operations at Liza Phase 1 have been largely unaffected by the COVID-19 pandemic, Exxon said. Thanks to the Liza Phase 1 development, Guyana officially joined the ranks of oil-producing nations at the end of December. Exxon and its partner, Hess Corporation, now believe that the recoverable resource base from 16 oil discoveries offshore Guyana is more than 8 billion oil-equivalent barrels.

#WTI Getting Slammed to $13/bbl, down 25% on the Day!!

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#Oil: Energy companies feel the pain of #Saudi Arabia’s price war

Energy companies feel the pain of Saudi Arabia's price war
'This is the financial crisis for oil — except the producers are not too big to fail'

From the shale fields of Texas to deepwater projects in the North Sea, the price war launched by Russia and Saudi Arabia sent shockwaves across the entire energy industry and triggered the biggest sell-off since the global financial crisis.  

It has left some companies searching for strategies to protect profits and keep paying dividends. Others are fighting for survival. 

"The price collapse could be the trigger for a new phase of deep industry restructuring — one that rivals the changes seen in the late-1990s," said Tom Ellacott of the consultancy Wood Mackenzie. "Sustained prices below $40 a barrel would trigger a new wave of brutal cost-cutting. More highly-leveraged players will be forced to make the deepest cuts to stave off bankruptcy." 

Nowhere is that more true than in the shale industry, which helped end US dependence on Middle Eastern oil.

See the whole article on the FT here: https://www.ft.com/content/50c289dc-621f-11ea-b3f3-fe4680ea68b5

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#Oil Market Update March 9 2PM EDT #OOTT

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@Vitol sees US #oil output peaking at 14MM bpd in next few years #Shale #OOTT

Vitol sees U.S. oil output peaking at 14 million bpd in next few years: CEO

Thursday, 27 February 2020 | 20:00

Trading house Vitol sees U.S. oil production peaking at around 14 million barrels per day in the next few years, its chief executive told the IP Week. 

"Shale is a very different industry. It takes a great deal to maintain pressure. It takes some 20,000 new wells every year to stand still at current production levels so we have oil production peaking in the new few years because it takes so much operationally just to maintain levels," Vitol CEO Russell Hardy said.

"So that shifts a little of power back to OPEC and OPEC+ but I don't think anyone can afford to be complacent about that."
Source: Reuters (Reporting by Julia Payne; editing by Jason Neely)

http://www.bunkerportsnews.com/News.aspx?ElementID=7721cc06-24bb-4355-8375-fee1ab4bcf7a

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Sen. Warren’s #Energy Plan Will Kill the #Oil Industry--not just #Fracking

 

If frack­ing were banned-as Sen. Warren is calling for- nat­ural gas prices in the U.S. would jump to some­where be­tween $9 and $15, up from $2.32 per mil­lion BTU on Fri­day, Energy Investment Bank Tu­dor Pick­er­ing es­ti­mates.

Oil would rise to the $80-to-$85 range and could risk shoot­ing to $150 dur­ing mar­ket shocks.

Read the whole story on The Wall Street Journal: Prospect of President Warren Spooks Energy Investors

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#USGS Announces Largest Continuous #Oil Assessment in #Texas & #NewMexico

This is the first assessment of continuous resources in the Wolfcamp shale and Bone Spring Formation in the Delaware Basin portion of the Permian. 

The Wolfcamp shale in the Midland Basin portion of the Permian Basin province was assessed separately in 2016, and at that time it was the largest assessment of continuous oil conducted by the USGS. The Delaware Basin assessment of the Wolfcamp Shale and Bone Spring Formation is more than two times larger than that of the Midland Basin. 

USGS Identifies Largest Continuous Oil and Gas Resource Potential Ever

Assessment units for the Wolfcamp Shale and Bone Spring Formation of the Delaware Basin.

(Public domain.)

WASHINGTON - Today, the U.S. Department of the Interior announced the Wolfcamp Shale and overlying Bone Spring Formation in the Delaware Basin portion of Texas and New Mexico's Permian Basin province contain an estimated mean of 46.3 billion barrels of oil, 281 trillion cubic feet of natural gas, and 20 billion barrels of natural gas liquids, according to an assessment by the U.S. Geological Survey (USGS). This estimate is for continuous (unconventional) oil, and consists of undiscovered, technically recoverable resources.

"Christmas came a few weeks early this year," said U.S. Secretary of the Interior Ryan Zinke. "American strength flows from American energy, and as it turns out, we have a lot of American energy. Before this assessment came down, I was bullish on oil and gas production in the United States. Now, I know for a fact that American energy dominance is within our grasp as a nation."