• 5 minutes Trump vs. MbS
  • 9 minutes Saudis Threaten Retaliation If Sanctions are Imposed
  • 15 minutes Can the World Survive without Saudi Oil?
  • 1 hour WTI @ $75.75, headed for $64 - 67
  • 16 hours The Dirt on Clean Electric Cars
  • 6 hours These are the world’s most competitive economies: US No. 1
  • 6 hours The end of "King Coal" in the Wales
  • 6 hours Saudi-Kuwaiti Talks on Shared Oil Stall Over Chevron
  • 22 hours Uber IPO Proposals Value Company at $120 Billion
  • 4 hours Closing the circle around Saudi Arabia: Where did Khashoggi disappear?
  • 6 hours Coal remains a major source of power in Europe.
  • 2 hours EU to Splash Billions on Battery Factories
  • 2 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 13 hours Poland signs 20-year deal on U.S. LNG supplies
  • 17 mins Who's Ready For The Next Contest?
  • 1 day Nopec Sherman act legislation
Alt Text

Fear Has Driven Oil Prices Too High

The calls for $100 oil…

Alt Text

What’s Next For Oil Prices?

Oil markets will continue to…

Alt Text

Oil Experts Divided As Iran Sanctions Loom

The world’s top oil trading…

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