U.S. oil output to surpass Saudi and Russia combined by 2025

Anadarko Petroleum Corp. photo

 

Driven by a continued shale boom, the United States is on track to produce more crude oil and liquids than Russia and Saudi Arabia combined by 2025, an energy consultancy said. Continue reading

GREAT AGAIN: USA Is Now The Largest Global Crude Oil Producer – Surpasses Russia and Saudi Arabia

In February, U.S. crude oil production exceeded that of Saudi Arabia for the first time in more than two decades. In June and August, the United States surpassed Russia in crude oil production for the first time since February 1999. Continue reading

The Next Big U.S. Shale Play

Oil Rigs

 

Media coverage of the U.S. shale oil and gas industry makes it sound like the Permian is the only place where things are happening. Everybody is buying acreage in the Permian, selling acreage in other shale plays, and production costs are falling the fastest in that same Permian.

True as this may be, this shale play is by no means the only one where production is growing. In fact, oil and gas output across the shale patch has been growing, as the Energy Information Administration’s latest drilling productivity report shows. And that’s not all because there is a new actor on stage: Powder River Basin in Wyoming. Continue reading

Report: Texas shale can ‘compete with anything Saudi Arabia has’

Scott Sheffield, the outgoing chief of Pioneer Natural Resources, told Bloomberg that pre-tax production costs in the massive Permian Basin of West Texas have fallen to $2.25 a barrel.

“Definitely we can compete with anything that Saudi Arabia has. We have the best rock,” he said, adding that improvements in drilling technology and data analytics have “changed the cost calculus faster than almost anybody thought possible.” Continue reading

Shale Drilling Set To Take Off In Argentina

The economy in Argentina is best described as a “pendulum”, going from loose economic policies in the ‘80s to Washington-consensus liberalisation in the ‘90s and back again under the Kirchner regime. Since the current president Macri took office in December 2015, he has been reversing the policies of his predecessor and has focused on boosting the economy with free-market measures through eliminating currency controls and lowering utility subsidies. In March, the government also announced a US$7.50 per barrel subsidy on exported oil while Brent remained below US$47.50 per barrel to attract foreign investment. Continue reading

U.S. now has larger oil reserves than Saudi Arabia, Russia

The United States has for the first time surpassed Saudi Arabia and Russia in oil reserves.

A study by Rystad Energy estimates that recoverable oil in the U.S. from existing fields, discoveries and yet undiscovered areas amounts to 264 billion barrels. Saudi Arabia has 212 billion and Russia 256 billion in reserves. Continue reading

Bank of America sees $50 oil as Opec dies

“Our biggest worry is the end of the liquidity cycle. The Fed is done. The reach for yield that we have seen since 2009 is going into reverse”, said Bank of America.

The Opec oil cartel no longer exists in any meaningful sense and crude prices will slump to $50 a barrel over coming months as market forces shake out the weakest producers, Bank of America has warned.

Revolutionary changes sweeping the world’s energy industry will drive down the price of liquefied natural gas (LNG), creating a “multi-year” glut and a mucher cheaper source of gas for Europe.

Francisco Blanch, the bank’s commodity chief, said Opec is “effectively dissolved” after it failed to stabilize prices at its last meeting. “The consequences are profound and long-lasting,“ he said.

Continue reading