• 7 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 9 days Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 4 hours Most ridiculous green proposal
  • 21 mins QUESTION: With worldwide 1.4 Billion passenger vehicles and 360 Million commercial vehicles using combustion engines how long before gasoline and distillates measurably decline. .
  • 2 hours Biden's laptop
  • 1 day The Green Hydrogen Problem That No One Is Talking About
  • 5 mins Rethinking election outcomes for oil.
  • 4 hours The City of Sturgis Update on the Motorcycle Rally held there, and the MSM's reporting hence
  • 2 days China Sets Its Sights On Global [EV, AI, CRISPR, Fusion, Navel Lint Collector] Dominance
  • 7 hours Video Evidence that the CCP controls Joe Biden
  • 19 hours DOJ confirms FBI investigating Hunter Biden since last year for money laundering.
  • 1 day Making diamonds from thin air
  • 20 hours P@A will cost Texas Taxpayers $117 Billion.
Trump Makes Final Push To Defend Fracking

Trump Makes Final Push To Defend Fracking

President Donald Trump is reportedly…

Iraq To Back Any OPEC+ Oil Production Decision

Iraq To Back Any OPEC+ Oil Production Decision

OPEC’s second-largest oil producer, Iraq,…

Editorial Dept

Editorial Dept

More Info

Premium Content

A Worrying Sign For U.S. Shale

1. Frackers working through frack-log

- After years of adding drilled but uncompleted wells (DUCs) to the field, the shale industry began working through the backlog in earnest in the second half of 2019.

- The decline in the DUC list by about 10 percent can be interpreted as a sign of financial stress because it suggests that the industry is not drilling new wells as fast as they are completing already-drilled wells. Or, put more simply, the rate of drilling has declined.

- As Bloomberg points out, this trend is horrible for oilfield services companies like Halliburton (NYSE: HAL), which makes money on activity, regardless of the price of crude.

- Wall Street analysts predict a 29 percent decline in earnings for Halliburton in the fourth quarter.

- U.S. production could also flatten out once the DUC list is worked through, absent a renewed wave of drilling.

2. U.S. exports continue to rise

- U.S. oil exports continue to trend higher, with demand remaining flat at a time when production has steadily climbed.

- Exports topped 4 million barrels per day in late 2019, a record high. That may have been a one-off spike, at least for now. Still, exports consistently exceeded 3 mb/d last year, and are on an upward trend.

- That has allowed the U.S. – for the first time in decades – to become a net exporter of petroleum products.

- The Phase 1 trade deal between the U.S. and China could lead to more…





Leave a comment

Leave a comment




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