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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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Established in 2006 as a Community of Reality

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    Experts: slowing American oil production as a result of falling prices may be slower than good Arabi

    Rocky
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    Experts: slowing American oil production as a result of falling prices may be slower than good Arabi Empty Experts: slowing American oil production as a result of falling prices may be slower than good Arabi

    Post by Rocky Fri 17 Oct 2014, 9:40 am

    Experts: slowing American oil production as a result of falling prices may be slower than good Arabia



    October 16, 2014

    NEW YORK (Reuters) - began to Saudi Arabia this month, effectively a price war in the global oil market, aiming to quickly influence on the size of American production. However, the slow pace of the boom America in the drilling of wells may take more than a year. 
    expected by many observers downward trend quickly to global oil prices, works to reduce the drilling operations for the extraction of oil shale quickly in the United States, and slow the growth of production and contribute to the strengthening prices. 
    probably have small producers vulnerable to fluctuations sudden in prices to slow down spending, thereby reducing the amount of oil flowing into the market at a rapid rate. 
    , but even in the time that you think of drilling companies in reducing Almozanat for 2015, may continue production growth over the next year and possibly in 2016 as experts say, and familiar with the secrets of the industry. 
    Experts say that existing wells have been drilled and did not start after the extraction of oil shale which will increase production for months to come. And I have a lot of drilling companies long-term contracts to operate the rigs, and hate to pay heavy fines to abandon the equipment may need during a short period. 
    Also, most companies hedged for the production of next year at much higher prices, accelerated to complete contracts in 2016 and the protection of its revenue, even if the price falls In the oil markets. 
    , and at stake is no only the fate of sensation dig American changed features a picture of the energy sector in North America and ran the American economy, but also changed the face of the global market, at a time when hopes the Saudi leader «OPEC» grabbing market share from producers of the Americans. 
    has quoted the Saudi oil market unofficially that it is willing to let the prices go down to $ 80 a barrel for a year or two years, a strategy aimed appeared to producers Americans. 
    Since then, she said Kuwait and Iran that he does not plan to have to cut oil production. This is putting pressure on companies such as «Continental Resources» and »Aa.o.ja Resources» which shares fell sharply declined during the last month. 
    represents a continuous decline in four months in the oil markets, and that has pushed Brent crude to its lowest level in four years without 85 dollars per barrel, the first major challenge to the American shale oil sector since the afternoon of existence four years ago, and push oil production to its highest level in nearly 30 years. 
    Much depends on the response of the industry to the environment of low prices, which have not used them. Has participated hundreds of American companies of various dug thousands of new wells in promoting revolution oil shale. 
    said Roland Burns, chief financial company «Comstock Resources» in Frisco, Texas, which concentrated its operations in Texas, Louisiana and Mississippi «It's like changing the direction of a tanker. You can not do it in a narrow space ».

    Excavators more than ever

    Yet rarely looked small and medium enterprises, which had been the driving force of the oil boom, farther from drilling operations and work to increase them. Showed a weekly report of the company «Baker Hughes» oil services to oil rigs in the North America and reached the highest level on record at the 1609 excavators last week, an increase of 17 percent from what it was a year ago. 
    reached American production its highest level in 30 years, thanks to Production of heavy rock formations production has never exploited. 
    certainly is likely to think a lot of producers who are now investment budgets for next year in reduced. Some companies have seen their share prices drop on fears of increased spending in the prices will be low. 
    analysts said the bank «Wells Fargo» American this week, they expect not to change the American corporate spending on drilling and production business in the year 2015. Thanks to the rapid decline, which reached 70 percent in oil wells rock after the first year, will stabilize spending to limit the growth of production from oil shale to 200 thousand barrels per day only. 
    was US oil production rose by one million barrels per day in each of the past three years. 
    The chief financial officer said Burns in an interview that the company «Comstock Resources» may cut rigs five working in the field of oil next year to three excavators only. 
    has jettisoned the company «Magnum Hunter Resources» producing oil and gas, and its tracts of land in some of the oil fields of shale Home In the United States, from oil to sell some of its assets earlier this year for fear of falling prices. 
    said Gary Evans, chief executive, in an interview «There is no doubt that the low prices will affect the oil activity. And you will see a shift in direction on the part of some companies ».

    The time required for the emergence of effects

    But even if spending fell, some say that translates into a significant reduction in production will take time. 
    number of wells drilled completed and did not start production after them could keep production stable. In North Dakota, where at least the price of crude extracted from the Bakken configurations now for $ 80, the number of wells awaiting hydraulic fracturing work (method of extraction of oil shale) at the end of July last about 630 wells, which represents a delay equivalent to at least three months . 
    said Mark Hanson, an oil analyst at «Mornngustar» oil services «It's not as if oil will reach $ 75 and affects everyone panic». Should oil prices remain below $ 75 a barrel for a long time before they slow down drilling operations. Hanson said that some of the producing fields profitable at a level of up to $ 50 a barrel. 
    , and on Tuesday said the company «Matador Resources» producing oil and gas and concentrated its operations in Texas, she plans to continue installing spending at its level in 2015 if oil prices remained in a range between 80 and 85 dollars per barrel. 
    , and even in this case the company is expecting to increase oil and gas production increased by almost 50 percent next year, thanks to factors such as the expected growth by the end of this year. 
    arranged as many companies hedging for 2015 at higher prices will make production next year profitable, according to the said companies in offers detailed. 
    seeking some production companies that she's feeling the tension gradually to sell production in 2016 is also in spite of low prices for that year of $ 89 to $ 81 a barrel in three weeks, according to Andy Lebo, vice president of Jefferies brokerage. 
    illustrate the models developed by Analysts with the company «Zhinskab» they expect the low number of oil rigs by 300-digger by the end of 2015, but even that will only slow down the growth in oil production to reach about 600 thousand barrels per day. 
    This is almost enough to meet the increase in global oil demand this year .

    http://www.alquds.co.uk/?p=236082
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