Even at $40 oil, U.S. shale will still grow in 2017, Rystad says

[thackney]

Even at $40 oil, U.S. shale will still grow in 2017, Rystad says
http://fuelfix.com/blog/2017/05/12/even-at-40-oil-u-s-shale-will-still-grow-in-2017-rystad-says/



U.S. oil prices have dropped below $50 a barrel in recent weeks, in part because traders worry shale drillers will pump a lot more crude than the world needs this year.

But analysts believe even if the price falls to $40 a barrel, crude production across the continental United States will keep growing. In a report this week, Rystad Energy said the nation, excluding the Gulf of Mexico, could still bring 145,000 barrels a day into production at that lower price.

“A drastic downward shift in the market conditions will not lead to a rapid collapse of the U.S. oil production,” Rystad said in its report. At $30 a barrel, U.S. Lower 48 production would only drop by 500,000 barrels a day from about 7 million, the group estimates.

If oil clings to the $50 mark, daily output could jump by 390,000 barrels from May to December, on top of the 430,000 barrels added since last December.

[thackney]

Report: Oil To Hit $60 Max in 2017
http://www.rigzone.com/news/oil_gas/a/150131/Report_Oil_To_Hit_60_Max_in_2017
May 15, 2017

There is clear consensus that oil prices will be in the $50-60 per barrel range this year, and within the $60-80 per barrel range in 2020, according to a new survey from Wood Mackenzie.

The survey, which analyzed the responses of 170 industry professionals, revealed that priorities for 2017 are focused on protecting dividends and strengthening balance sheets.

Higher risk investments, such as deepwater projects, are being screened at higher hurdle rates by the industry, according to the report, which suggested that lower risk investments, like asset M&A, are most likely to be pursued by the sector.

“The industry is very cautious right now and risk appetite is low,” Martin Kelly, Wood Mackenzie’s head of corporate analysis, said in a statement sent to Rigzone.

Wood Mackenzie’s oil price prediction is in line with a recent poll conducted by Rigzone, which placed the price of Brent Crude Oil at around $60 per barrel by the end of the year.

[Idiot]

Report: Oil To Hit $60 Max in 2017
http://www.rigzone.com/news/oil_gas/a/150131/Report_Oil_To_Hit_60_Max_in_2017
May 15, 2017

There is clear consensus that oil prices will be in the $50-60 per barrel range this year, and within the $60-80 per barrel range in 2020, according to a new survey from Wood Mackenzie.

The survey, which analyzed the responses of 170 industry professionals, revealed that priorities for 2017 are focused on protecting dividends and strengthening balance sheets.

Higher risk investments, such as deepwater projects, are being screened at higher hurdle rates by the industry, according to the report, which suggested that lower risk investments, like asset M&A, are most likely to be pursued by the sector.

“The industry is very cautious right now and risk appetite is low,” Martin Kelly, Wood Mackenzie’s head of corporate analysis, said in a statement sent to Rigzone.

Wood Mackenzie’s oil price prediction is in line with a recent poll conducted by Rigzone, which placed the price of Brent Crude Oil at around $60 per barrel by the end of the year.

I'm sorry but I don't see it.  I see more like the $40-$50 that we are currently seeing.  The shale/ horizontal plays out in West Texas are booming and the accompanying rise in production will likely hold oil prices down.....sadly........

[IsailedawayfromFR]

I'm sorry but I don't see it.  I see more like the $40-$50 that we are currently seeing.  The shale/ horizontal plays out in West Texas are booming and the accompanying rise in production will likely hold oil prices down.....sadly........

Sadly if one is in the industry.  The consumers will enjoy.