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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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    Difficulties facing the oil industry rock

    Rocky
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    • Post n°1

    Difficulties facing the oil industry rock Empty Difficulties facing the oil industry rock

    Post by Rocky Sun 08 Oct 2017, 4:25 am

    Difficulties facing the oil industry rock





    2017/10/08 12:08

    (Encyclopedia of this day , news | News Iraq ) -
    Finally, signs of difficulties in the US oil production industry have emerged in the current price level, especially if the current price range continues between $ 50 and $ 55 per barrel of oil in Central West Texas (the index used for US crude oil pricing, Brent crude oil price. 

    Concerns about the oil industry coincide with the US production in October rising to around 6 million bpd.


    Studies on rocky oil fields in the southern US states of Texas, New Mexico and northern Louisiana predict oil prices will continue to be low in the third quarter of this year, compared with the price level at the beginning, which has curbed the growth of the shale oil industry. 

    The studies have not ruled out the continuation of the price range between 50 and 55 dollars per barrel of oil in West Texas in the next three years. 

    Studies also suggest that price increases from the current level will encourage companies to drill more wells, while a lower price would reduce capital spending on the shale oil industry.


    However, although the plans of companies in the sector have not indicated expansion of production as long as they depend on the average of $ 50- $ 55, there are a large number of wells that have already been dug without being developed in the giant Permin basin, meaning that they are not ready for production until completion Development stage.


    It is estimated that the production capacity of wells dug and not developed, can add about 50 thousand barrels per day. 

    According to the US Energy Information Administration, as of August, the number of wells drilled was 7048, one-third of them in the Permin basin.


    Observers were not afraid of the deterioration of the quality of oil wells rock, because companies are pressing to increase production, which is evidenced by the increase in the rate of gas associated with oil, which is an indication that the pressure of the reservoir in the decline. 

    Evidence of the prevalence of these concerns is the recent decline in the value of shares of companies operating in the oil fields.


    Observers also express concern about the pressure exerted by companies operating on the "young" rock fields by increasing their production quickly, and pressure on these new fields and trying to raise production, in light of the current situation where modern technologies are available. 

    They also ask about the fate of the production rates of these fields in later periods, when the flow of modern technologies shrinks.


    The long-term productivity of the Igal Ford field is worrisome and is due to the relatively low level of productivity of the field, despite the availability of new technologies. 

    The question that arises as to what will happen to the productivity of the field, when the flow of modern technologies is reduced in a continuous form in the future? The Eagle Ford field is located in Texas on the Mexican border. 

    US companies in the field are looking to invest in the Mexican side, especially as the Mexican government is opening the way for international companies to invest in their country.


    Rocky oil companies are trying to move to the Eagle Ford field to compensate for the challenges they face in the Permin basin. 

    Eagle Ford is the second largest oilfield in the US after the Permin Basin, considering that it is much bigger than the Eagle Ford. 

    For example, the US Energy Information Administration estimates that Permin will produce 2.64 million barrels per day this month, while Igal Ford will produce 1.27 million bpd. 

    US crude oil production this month is expected to be around 6.08 million bpd. 

    The average crude oil production (conventional and non-conventional) was 9.547 million bpd at the end of September.


    But as is the case in such cases, different views are issued. 

    A study of the consultancy consultancy AESMarket, based on a survey of about 440,000 wells, says the oil reserve, which is still capable of being produced in the giant Permin Basin, is estimated at 60 billion barrels of rock oil and 70 billion barrels. 

    The study also refers to the alternatives available for production of "trapped oil", which provides different production alternatives for companies at different price rates.


    The production of US shale oil is an important factor in the estimates of OPEC and its allied producing countries in the policy of reducing production to rebalance the international markets. 

    Because the United States is the most productive country that increases production annually, because of its excess production capacity derived from rock oil.


    The challenge for OPEC and its allies is that keeping the price range between $ 50 and $ 55 a barrel for Brent oil will deter the increase in annual oil production. 

    But at the same time, some OPEC countries complain that this level of price is inappropriate for their annual budgets, leading to a deficit in it.


    * Iraqi writer specializing in energy.


    Citing Al-Hayat newspaper


    https://hathalyoum.net/articles/1375900-%D8%B5%D8%B9%D9%88%D8%A8%D8%A7%D8%AA-%D8%AA%D9%88%D8%A7%D8%AC%D9%87-%D8%B5%D9%86%D8%A7%D8%B9%D8%A9-%D8%A7%D9%84%D9%86%D9%81%D8%B7-
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