• 3 minutes Natural gas is crushing wind and solar power
  • 6 minutes OPEC and Russia could discuss emergency cuts
  • 8 minutes Is Pete Buttigieg emerging as the most likely challenger to Trump?
  • 11 minutes Question: Why are oil futures so low through 2020?
  • 13 minutes Don't sneeze. Coronavirus is a threat to oil markets and global economies
  • 4 mins So the west is winning, is it? Only if you’re a delusional Trump toady, Mr Pompeo, by Simon Tisdall
  • 10 mins Peak Shale Will Send Oil Prices Sky High
  • 2 hours "Criticism of migration will become a criminal offense.  And media outlets that give room to criticism of migration, can be shut down." - EU Official to the Media.
  • 1 hour Charts of COVID-19 Fatality Rate by Age and Sex
  • 7 hours Fight with American ignorance, Part 1: US is a Republic, it is not a Democracy
  • 8 hours CDC covid19 coverup?
  • 4 hours Oil and gas producers fire back at Democratic presidential candidates.
  • 23 hours “The era of cheap & abundant energy is long gone. Money supply & debt have grown faster than real economy. Debt saturation is now a real risk, requiring a global scale reset.”"We are now in new era of expensive unconventional energy
  • 9 hours Democrats Plan "B" Bloomberg Implodes. Plan "C" = John Kerry ?
  • 24 hours Who decides the Oil costs?
  • 1 day Blowout videos
Alt Text

Nigeria’s Terrible Oil Decision

Nigeria’s tightening terms on deepwater…

Alt Text

Two Innovations That Could Make CO2 Fuel A Reality

Two recent innovations could make…

Editorial Dept

Editorial Dept

More Info

Premium Content

Lower Oil Prices Fail To Stop U.S. Shale Growth

1. U.S. shale grows even with lower prices

- OPEC+’s task in Vienna was complicated by the fact that the projections for U.S. shale growth are all over the map.

- The latest projection from Rystad Energy finds that U.S. shale will grow “even in an environment with lower prices.”

- The Norwegian consultancy said that the oil market would see a substantial build in inventories in 2020 without deeper OPEC+ cuts.

- Rystad notes that despite the significant decline in the U.S. rig count, the pace of spudded wells has not fallen dramatically.

- Still, spending has fallen by 6 percent in 2019 and is expected to decline by another 11 percent in 2020.

- Rystad’s base case is U.S. light tight oil production grows to 11.6 mb/d by 2022, implying a CAGR of 10 percent each year between 2019 and 2022.

- But output comes to a standstill at 10.1 mb/d over that timeframe in a $45-per-barrel scenario, a mostly flat production trajectory.

2. Simple refineries not making money as IMO deadline approaches

- The IMO rules tightening up sulfur limits in marine fuels takes effect next month. Sudden changes in prices and differentials in refined product markets suggests that the refining industry is starting to make the switchover.

- Simple refiners that have limited ability to adapt could struggle. “A combination of rising compliance rates and run cuts from simple refiners could drive higher diesel…




Leave a comment

Leave a comment




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