• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 1 hour The Downside of Political Correctness
  • 20 mins In the Event of WW3, Oil and/or Renewables?
  • 1 hour Main Stream Media falls into depressed mood today after hearing of the record May jobs report UP 2.5 MILLION JOBS !
  • 44 mins George Floyd’s History
  • 54 mins US and Australia Sign SPR Lease Agreement
  • 14 hours Rioting and Protesting
  • 39 mins Trump waves a Bible
  • 1 hour China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 13 hours Let's try to link the recent events back to the situation with oil production and pricing
  • 1 day Healing, Not Hatred
  • 8 hours Coronavirus hype biggest political hoax in history
  • 5 hours World’s First Integrated Hydrogen Power-to-Power Demonstration Launched
  • 19 hours China’s Oil Thirst Draws an Armada of Tankers
  • 7 hours Model 3 cheaper to buy than BMW 3 series.
  • 1 day Trumps Oil Industry....
Oil Prices Surge As OPEC+ Nears Deal

Oil Prices Surge As OPEC+ Nears Deal

Oil prices have surged above…

U.S. Shale Outperforms Expectations In Q1

U.S. Shale Outperforms Expectations In Q1

While oilfield services companies have…

Oil & Gas Still King Despite Renewable Hype

Oil & Gas Still King Despite Renewable Hype

Renewables are often credited for…

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