Author Topic: Shale Boom Slows as Investor Enthusiasm for Permian Fades  (Read 979 times)

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Online IsailedawayfromFR

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Shale Boom Slows as Investor Enthusiasm for Permian Fades
« on: August 07, 2017, 01:41:44 pm »
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Oil explorers reduced rigs drilling in U.S. oilfields this week, fueling optimism that a shale slowdown and OPEC production cuts will be enough to deflate a glut and strengthen crude prices.

Working rigs targeting crude fell by 1, bringing the total to 765, according to Baker Hughes data reported Friday. Producers ended 23 straight weeks of additions with a pullback at the end of June, breaking the longest stretch of continuous growth in three decades. Even so, more than twice as many rigs are drilling for oil now than in May 2016, when the count hit a low point of 316.

"It echoes what we’ve been expecting and what explorers and producers have been saying," Andrew Cosgrove, senior analyst for energy and mining equity at Bloomberg Intelligence, said by telephone. "They’re dialing back some of their expectations for output in the second half of the year."

The Eagle Ford basin in Texas bucked the trend by adding three rigs for a total of 70 working there. The Permian basin was unchanged, putting an end to three weeks of expansion.

Shares Stumble
Shares of major shale producers including Pioneer Natural Resources Co. and EOG Resources Inc. tumbled this week as investors began to lose confidence in the prolific Permian basin. As the productivity of older wells in shale fields is rapidly declining, explorers added rigs at a record pace this year to keep increasing output. The Permian has seen the steepest declines among the four largest U.S. shale plays.
http://www.rigzone.com/news/oil_gas/a/151297/Shale_Boom_Slows_as_Investor_Enthusiasm_for_Permian_Fades
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Offline thackney

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Re: Shale Boom Slows as Investor Enthusiasm for Permian Fades
« Reply #1 on: August 07, 2017, 03:49:34 pm »
Drilled but uncompleted wells (DUC)
https://www.eia.gov/petroleum/drilling/#tabs-summary-3

Halliburton hiring 100 per month to meet Texas fracturing demand
http://www.mrt.com/business/oil/article/Halliburton-hiring-100-per-month-to-keep-up-with-11277620.php

Halliburton has hired about 100 new workers each month this year to keep up with surging demand for fracturing in West Texas, a sharp turnaround after the job-killing oil bust.

The Houston oil field service company has expanded its active fleet of fracturing trucks and pumps by 30 percent in recent months, and its workforce in the region has grown by more than a third to 2,700 employees, said Chris Gatjanis, who runs Halliburton's operations in the Permian Basin, in a recent interview.

To keep that hiring spree going, the largest U.S. fracturing company has had to recruit a large commuter workforce from outside of West Texas, holding job fairs in places like Alabama, Mississippi and Nevada....
« Last Edit: August 07, 2017, 03:52:03 pm by thackney »
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