• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 2 hours China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 3 mins Recession Jitters Are Rising. Is There Reason To Worry?
  • 1 hour US Shale Economic Impact: GDP gain realized in shale boom’s first 10 years
  • 9 mins Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 8 hours It's Not the Job of the Government to Dictate Where Businesses Should Go
  • 4 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
  • 8 hours Offshore subsea sub 50$/bbl : Rystad Energy: High stakes in store for subsea markets if oil falls to $50/bbl
  • 1 hour Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 1 hour TRUMP'S FORMER 'CHRISTIAN LIAISON' SAYS DEEPWATER HORIZON DISASTER WAS GOD'S PUNISHMENT FOR OBAMA ISRAEL DIVISION
  • 13 hours US to Drown the World in Oil
  • 2 hours Iran Is Winning Big In The Middle East
  • 18 mins Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 2 mins Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
  • 5 hours Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs
Lebanon’s High Risk Offshore Oil & Gas Boom

Lebanon’s High Risk Offshore Oil & Gas Boom

Lebanon is preparing itself to…

U.S. Is Now Largest Oil… And Gas Producer In The World

U.S. Is Now Largest Oil… And Gas Producer In The World

Petroleum and natural gas production…

U.S. Shale Operations Cushioning ‘Iraq Effect’ On Oil Prices

The rise in crude oil extraction from shale in the United States has been lessening the effect of the fighting in Iraq on the price of oil, according to some oil analysts. And a recent report by Barclays says this isn’t just a coincidence.

The increased application of methods such as hydraulic fracturing and horizontal drilling has led to a surge in U.S. crude output and kept the price of oil from rising even further during the past month, according to Nansen Saleri, the CEO of Quantum Reservoir Impact, a consultancy in Houston.

Saleri, once the chief of reservoir management at the Saudi Arabian Oil Co., said the U.S. benchmark crude, West Texas Intermediate, has risen only about $5 to $10 over the past 30 days because of concern about the oil flow from Iraq, the second-greatest producer in OPEC. Without the U.S. surge, that increase would have been more like $20 to $30, he said.

During the week of June 8, the production of U.S. crude increased by 17,000 barrels to 8.477 million barrels, much of it from shale extraction. “The surge in U.S. production is a hugely stabilizing factor,” Saleri told Bloomberg news.

The surge is not only making up for expected shortfalls from Iraq, but also from Libya and Iran, Christof Ruhl, the chief economist of BP, said in New York.

Related Article: Latest Oil Train Derailment Adds Pressure For Stronger U.S. Action

Meantime, Ruhl said, amid conflicting reports that Iraq’s biggest oil refinery has been captured by Sunni rebels of the Islamic State of Iraq and Syria, or ISIS, “nothing has happened to [overall] production” in Iraq. He pointed to uninterrupted oil shipments from southern Iraq, the region with the country’s greatest production.

Although prices are rising more slowly than once feared, they’re rising enough to cause oil companies to increase annual spending on extraction to $165 billion in the United States during 2014, according to the British bank Barclays.

A report issued June 18 said the bank’s analysts expect spending on exploration and extraction should rise by 9.6 percent over 2013. Barclays had previously forecast increased investment, but raised that estimate because of the recent gains made by ISIS in northern Iraq.

By Andy Tully of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play