• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 10 hours Simple question: What is the expected impact in electricity Demand when EV deployment exceeds 10%
  • 8 hours America's pandemic dead deserve accountability after Birx disclosure
  • 1 day Biden about to face first real test. Russia building up military on Ukraine border.
  • 2 days Trump punches back at Fauci and Birx's revisionist history (aka lies)
  • 4 days The coming Cyber Attack
  • 22 hours U.S. and Chinese investors to buy Saudi pipelines , $10 Billion deal.
  • 1 day Create a new law "Postericide" to prosecute and imprison Climate Change "Deniers"
  • 2 days New Chinese Coal Plants Equal All those in U.S.A
  • 3 days Goldman Betting on Cryptocurrencies
  • 14 hours NG spot prices hit triple digits for weekend delivery
  • 5 days New German Study Shocks Electric Cars: “Considerably” Worse For Climate Than Diesel Cars, Up To 25% More CO2
  • 6 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 6 days Forecasts for Natural Gas
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

BP CEO Dudley: U.S. Shale Is ‘A Market Without A Brain’

The U.S. shale industry responds only to oil price signals and is like “a market without brain”, BP’s chief executive Bob Dudley said on Tuesday.

“The U.S. is the only country that completely responds to market signals ... like a market without a brain. It just responds to price signals,” Reuters quoted Dudley as saying at the ongoing International Petroleum Week conference in London.

“Unlike Saudi Arabia and Russia, which adjust their output in response to gluts or shortages in oil supplies, the U.S. shale market responds purely to oil prices,” said the CEO of the UK oil supermajor, which completed last year a US$10.5-billion deal to buy U.S. shale assets from BHP in what was BP’s biggest acquisition this century, and one that BP will rely on for boosting production and margins. 

The acquisition adds oil and gas production of 190,000 barrels of oil equivalent per day (boe/d) and 4.6 billion oil equivalent barrels (boe) of discovered resources in the liquids-rich regions of the Permian and Eagle Ford basins in Texas and in the Haynesville natural gas basin in East Texas and Louisiana, BP says.

The U.S. shale sector is sensitive to oil prices and drillers respond to them by adding or reducing working rigs, also because shale production is shorter-cycle and easier to switch on and off than complex conventional oil projects.

While OPEC and its Russia-led allies have been looking for two years now at supply and demand and adjusting production to avoid another oil glut similar to the one that crashed oil prices in 2014, U.S. shale has been benefiting from the OPEC/non-OPEC coordinated market action and the increase in oil prices over the past two years. Producers have been pumping record amounts of crude oil in the United States, which is already the world’s top oil producer ahead of Russia and Saudi Arabia.

U.S. crude oil production hit a record 12 million bpd in the week ending February 15, rising by 100,000 bpd from 11.9 million bpd in the previous week, EIA data showed last week.

By Tsvetana Paraskova for Oilprice.com  

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Matthew Biddick on February 26 2019 said:
    While the U.S. is entitled to produced as much as it can/desires due to its total demand of almost 21 mmbopd, it is not wise to do so. The U.S. has entitled itself to virtually every bit of yearly global demand increase, and then some. We are part of a global market. I know I appreciate it when KSA and Russia exhibit restraint. Sure hope the U.S. industry can figure this one out.
  • Cody Ellsworth on February 27 2019 said:
    Dudley doesn't like when markets respond to supply and demand. Markets are supposed to respond that way.

Leave a comment




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