• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 6 days Natron Energy Achieves First-Ever Commercial-Scale Production of Sodium-Ion Batteries in the U.S.
  • 6 days Bad news for e-cars keeps coming
  • 5 days The United States produced more crude oil than any nation, at any time.
  • 8 days RUSSIA - Turkey & India Stop Buying Russian Oil as USA Increases Crackdown on Sanctions
Russian Oil Product Shipments Slipped in June

Russian Oil Product Shipments Slipped in June

Russian oil product shipments experienced…

Will OPEC+ Ever Rein In Its Non-Compliant Members?

Will OPEC+ Ever Rein In Its Non-Compliant Members?

OPEC+ faces ongoing challenges as…

Aramco Secures $31 Billion in Orders for Bond Offering

Aramco Secures $31 Billion in Orders for Bond Offering

Saudi Aramco's latest bond offering…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Some Shale Drillers Restart Shut-In Wells

Cactus 2 pipeline

Some shale oil companies in the United States have begun to reopen wells they had shut in earlier in response to the low oil prices, Energy Transfer said in a conference call this week, as quoted by Bloomberg.

About a quarter of the wells halted in the Permian are not back online, Energy Transfer’s chief commercial officer Mackie McCrea said, noting that the number of shut-in wells in the shale play account for some 8 percent of the total.

There could be a purely practical reason for that rather than a reason to believe prices are rising sustainably. The longer an oil well is shut in, the more uncertain it becomes whether it will be able to resume production, according to experts.

This is especially true about shale oil wells: there is a ton of expertise on how to shut in a conventional oil well and avoid loss of production. Shale oil wells, however, are a new thing even if the technology itself is not new. A shut-in for a couple of weeks would not do any damage, according to experts, but anything longer could be risky.

Meanwhile, some shale oil producers are cutting production further, Bloomberg wrote, notably Continental Resources and Callon Petroleum. Curtailment plans by different companies announced last month added up to a further reduction of 600,000 bpd in U.S. production.

And yet some producers are ready to start expanding output again when West Texas Intermediate reaches $25 and, presumably, stays there for more than a day. Among these, Bloomberg reported earlier this month, were Parsley Energy, Centennial Resource Development, and Diamondback Energy. Interestingly, Parsley Energy was among the supporters of a mandatory production cut in Texas.

WTI is now close to $25 a barrel, recording a string of five consecutive daily gains last week. This rally came on the back of returning optimism about demand as lockdowns in Europe and the U.S. begin to be eased. Analysts, however, have warned against too much optimism as the problem with a massive supply overhang and limited storage capacity remains.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News