• 4 minutes China goes against US natural gas
  • 12 minutes WTI @ 67.50, charts show $62.50 next
  • 15 minutes Saudi Fund Wants to Take Tesla Private?
  • 51 mins Downloadable 3D Printed Gun Designs, Yay or Nay?
  • 56 mins Peak Oil is Now!
  • 5 hours Rattling With Weapons: Iran Must Develop Military To Guard Against Other Powers
  • 7 hours Russians hacking vs U.S., Microsoft President: Russians Targeting All Political Sides
  • 3 hours Corporations Are Buying More Renewables Than Ever
  • 13 hours VW Receives Massive Order Of 1,600 All-Electric Trucks
  • 21 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 1 day CO2 Emissions Hit 67-Year Low In USA, As Rest-Of-World Rises
  • 1 day The EU Loses The Principles On Which It Was Built
  • 1 day Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 18 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 1 day The Discount Airline Model Is Coming for Europe’s Railways
  • 1 day Starvation, horror in Venezuela
Alt Text

Saudi Arabia And Iran Reignite The Oil Price War

As U.S. sanctions on Tehran…

Alt Text

Oil Prices Hit 7-Week Low As Trade War Heats Up

Oil prices traded close to…

Alt Text

Oil Markets Are In For A Bumpy Ride

After a somewhat quiet summer,…

Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

Trending Discussions

Basic Arithmetic Letting Oil Companies Down

Sesame Street is better at math than the oil companies are right now. Virtually every midsized oil exploration and production company has recently claimed not only to maintain production levels for 2015, but to increase production in the next year, all while slashing capital expenditure budgets to the bone. That math doesn’t compute at all: Where is the Sesame Street “Count” when you need him?

It really is as simple as 1, 2, 3….

This week after capex slashes were reported from several US oil companies, including a stunning 75% drop in the budget of Abraxas energy (AXAS), Canadian oil companies started to report with their own version of austerity for 2015. Husky energy (HSE), the number four oil major in Canada, has dropped its capex a third for the year coming, to $2.9B dollars. Penn West Petroleum (PWT) has guided its capex down $215m Canadian Dollars or 25% to $625m. MEG Energy (MEG), Cenovus (CVE), Tormaline (TOU) and Canadian Oil Sands Energy (COS) have reported similar spending reductions. The only constant in today’s cratering oil market are the dwindling drilling budgets of US and Canadian oil companies.

But production? Oh no, that’s another story. So far, I’ve yet to see one oil company, US or Canadian, admit to static production numbers from 2014 repeating in 2015, much less a production drop. It sounds much like the old jokes of discount sellers of knives or salad bowls – (“we sell UNDER our…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





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