• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 1 min Science: Only correct if it fits the popular narrative
  • 4 hours Crazy Stories From Round The World
  • 1 day EU has already lost the Trump vs. EU Trade War
  • 12 hours What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 1 day China's Renewables Boom Hits the Wall
  • 19 hours Do The World's Energy Policies Make Sense?
  • 3 hours Iran Burning: Shock Gas Price Hike Triggers Violent Protests After Subsidy Cuts
  • 1 day Forget out-of-date 'dirty oil' smear, Alberta moving to be world's cleanest oil industry
  • 21 hours Impeachment Nonsense
  • 3 hours Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 1 day Water, Trump, and Israel’s National Security
  • 2 days Tesla Launches Faster Third Generation Supercharger
  • 12 hours Who writes this stuff? "Crude Prices Swing Between Gains, Losses"

Breaking News:

Russia Plans To Boost Crude Oil Exports

Chesapeake Isn’t Dead Yet…

Chesapeake Isn’t Dead Yet…

Chesapeake, one of the hardest…

U.S. Oil Drillers Dial Back Activity In Very Volatile Market  

US Shale rig

Oil and gas activity in the United States is slowing even in some of the most prolific regions, as oil producers undergo some spending-belt tightening to stay a step ahead of volatile oil prices, a new Q3 fed survey showed on Wednesday, cited by Reuters.

While oil production is still increasing, holding firm at 12.4 million bpd for the last few weeks, oilfield services sector reported that they have seen declines in activities, a confirmation of the belief that US oil producers continue to find new ways to get more bang for their buck.

In 2019, the number of active oil rigs in the United States have fallen sharply, by 158, according to Baker Hughes, incurring losses in 10 of the last 11 weeks. At the same time, oil production in the United States has increased from an average of 11.7 million bpd at the beginning of the year to an average of 12.4 million bpd now, according to the EIA.

But while producers are enjoying lower costs with fewer wells, the outlook for oilfield services isn’t so rosy.

The overall outlook of the 55 oilfield services executives responding to the survey was negative, with more than 42% of participants showing a decrease in operating margins compared with the year prior.

But even exploration and production firms are proceeding with a cautious outlook, according to the survey. E&P firms who were surveyed mentioned that they were facing capital constraints and were worried about tariffs driving up costs.

The benchmark for WTI crude has risen from $45-ish per barrel at the beginning of the year to the high $50s now, but it is still almost $20 per barrel down from Q3 2018.

Overall, the Federal Reserve Bank of Dallas said that the energy sector growth index fell from 10.8 in the first quarter to -7.4 in the third quarter, indicating that business activity within the sector is contracting.  

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Jay Khaye on September 25 2019 said:
    The EIA weekly Petroleum Report for production is a guess at best.
    The monthly reports which have more accurate data have been almost flat from Nov2018 to June2019. The real production number at present is quite likely in the 12.1 million b/d range. The EIA seems determined to keep smalll traders in the dark.

Leave a comment

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