• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 1 day What China is Learning from Russia's War in Ukraine and its Consequences
  • 10 hours Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
  • 6 hours Advancing Fundamental Drilling Science - Geothermal drilling successes offer potential gain for petroleum industry
  • 3 days Failure To Implement Russian Oil Ban Could Send Oil Crashing To $65
  • 5 days Revisiting: "The U.S. Grid Isn’t Ready For A Major Shift To Renewables" from March 2021 by Irina Slav at OILPRICE
  • 2 hours "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
Editorial Dept

Editorial Dept

More Info

Premium Content

Soaring Costs Set To Hurt U.S. Shale Production

1. Soaring Production Costs Stoke Fears of US Shale Slowdown

- Just as US shale producers were poised to capitalize on high crude prices and bring new production to the markets, Texas drillers have been confronted with soaring production costs.

- According to Continental and Coterra, drilling and production costs in average shale plays were up by some 20%. It isn't only that rigs and workers are in short supply, the doubling of fracking sand and diesel prices have also added to the inflationary pressure.

- The lead time between order and delivery of steel pipes (used to line the interior of oil wells), drilling equipment, and compressors can now be as long as two years, coming on the back of global supply chain disruptions.

- Market watchers have been caught by surprise by the EIA’s February crude production data, indicating a decline despite expectations to the contrary, with drillers continuing to deplete drilled-but-uncompleted wells (DUCs).

2. China Spends a Record-Breaking Amount on Russian Commodities

- China’s monthly imports of commodities from Russia reached a new all-time high in April, rising to $8.9 billion, up 56% year-on-year as soaring crude prices and robust buying created a perfect storm.

- Whilst one-sixth of China’s crude buying comes from Russia, oil prices averaging some $110 per barrel last month led to the record numbers, with little additional interest for Russian distressed oil…

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