• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 1 day Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 10 hours Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 2 days CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 19 hours NordStream2
  • 17 hours OPEC+ Expects Large Oil Glut In Early 2022
  • 2 hours Ukrainian Maidan after 8 years
  • 3 days "Gold Set To Soar As Inflation Fears Mount" by Alex Kimani
  • 3 hours Forecasts for Natural Gas
  • 19 hours Big Bounce: Russian gas amid market tightness - new report by Oxford Institute for Energy Studies
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

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…




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