• 4 minutes Phase One trade deal, for China it is all about technology war
  • 7 minutes IRAN / USA
  • 11 minutes Shale Oil Fiasco
  • 16 minutes Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
  • 3 hours China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 10 hours What's the Endgame Here?
  • 2 hours US Shale: Technology
  • 4 hours Indonesia Stands Up to China. Will Japan Help?
  • 1 hour Gravity is a scam!
  • 24 hours 10 Rockets hit US Air Base in Iraq
  • 19 hours Canada / Iran
  • 1 day Wind Turbine Blades Not Recyclable
  • 20 hours Remember: Only the Poor Can Reach the Kingdom of God
  • 1 day IRAQ / USA
  • 1 day Tales From The Smoke Shack and beyond.
  • 1 day History’s Largest Mining Operation Is About to Begin
Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

US Shale Winners And Losers – Part Two

In going over the 3rd quarter reports from the US E+P’s, the report from Continental Resources (CLR) was the most interesting to me. Harold Hamm, CEO of Continental, was virtually alone in cutting 2015 capex and production guidance, a move obviously designed to help weather what I’m calling an $80-oil winter of sustained low oil prices. In contrast, virtually every other CEO has “whistled through the graveyard” in refusing to adjust spend and production targets as part of their 3rd quarter conference calls. Considering that Continental is by far the best positioned Bakken E+P and Harold Hamm perhaps the smartest oilman ever, I tend to think his lone honest assessment to be far more on target than everyone else.

We are going to see some major production and spend declines caused by $80 oil, and they will be financially forced upon some players who don’t have the resilience of a Continental Resources.

Let’s look at some of the possible problem players in the Bakken to continue on with our series on shale production winners and losers.

In part one, we isolated some of the attributes of producers likely to show strain from sustained low oil: rickety balance sheets, high yield debt, holdings outside the core of the Nesson Anticline and behind the curve technology and efficiencies being a few. With this in mind, a couple of companies working in the Williston Basin appear in likely trouble over the next six months. Again, my thanks…




Oilprice - The No. 1 Source for Oil & Energy News