• 3 minutes War for Taiwan?
  • 7 minutes How China Is Racing To Expand Its Global Energy Influence
  • 10 minutes Is it time to talk about Hydrogen?
  • 1 min U.S. Presidential Elections Status - Electoral Votes
  • 46 mins “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 2 days Supreme Court rules against Cuomo's coronavirus limits
  • 3 hours “Did Authorities Do Enough To Find Out Why Oil Prices Went Negative?” By Irina Slav – Nov 26th
  • 2 hours WTI / ​​​​​​​Price Forecasting 
  • 1 day Biden's Green New Deal- Short Term - How Will He Start to Transition Out Of Crude?
  • 1 day America Could Go Fully Electric Right Now
  • 1 day Saudi Arabia Seeks to Become Top Hydrogen Exporter
  • 1 day Mail IN Ballot Fraud

Breaking News:

Volkswagen Readies Compact EV For 2023

This Century-Old Refinery Is Up For Sale

This Century-Old Refinery Is Up For Sale

With every market recession, the…

Peru’s Oil Industry Is Engulfed In Crisis

Peru’s Oil Industry Is Engulfed In Crisis

Peru’s oil industry is facing…

Editorial Dept

Editorial Dept

More Info

Premium Content

What Will $15 Oil Mean For Producers?

1. Gasoline demand plunges to 26-year low

- Unsurprisingly, U.S. gasoline demand has fallen sharply.

- With the U.S. economy in a form of hibernation, the impact is finally showing up in the data. The weekly EIA release shows a 13.8-million-barrel increase in crude inventories, gasoline stocks rose by 7.5 million, and refinery rates fell by 1 mb/d.

- Gasoline demand is down to 6.5 mb/d, a figure not seen since 1994.

- “This underlines our hypothesis that the harm caused to the US oil industry will outweigh the benefits for consumers,” Commerzbank wrote in a note.

2. Shale cuts growing

- More spending cuts are coming from the U.S. shale sector. Roughly 22 U.S. independents have cut spending by around $20 billion so far, an average of between 35 and 50 percent or more, according to Wood Mackenzie.

- “[C]ompanies today are far leaner than back then; and what we’ve seen so far may just be a taste of what’s to come,” WoodMac said.

- For the majors, share buybacks “will stop…Shell (US$4 billion), Chevron (US$5 billion), Total (US$2 billion) and Equinor (US$0.7 billion) have already shelved planned buyback programmes for 2020,” the consultancy added. The big question is whether the dividend payouts are going to get trimmed as well.

- Whiting Petroleum (NYSE: WLL) became the first major victim of the latest collapse in oil prices. The Denver-based driller declared…





Leave a comment

Leave a comment




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