Analysis: Things are flat in the Permian, and there's a push for renewables in Santa Fe by Dr. Daniel Fine

The full article is here-> https://www.daily-times.com/story/money/industries/oil-gas/2019/01/...

"The Permian-Delaware Basin rig count should start falling as oil operators, large and small, are flat for 2019.

Spending has been sharply reduced as supply now dominates the A.I. (Artificial Intelligence) used by many commodity traders in oil.   

The large or integrated oil companies have all the rigs of 2018 in place for 2019. This would make October the price peak of the latest boom or recovery in oil. Permian-Delaware Basin production would decline at least 500,000 barrels in 2019 to offset the supply glut and stabilize at $50 per barrel.

OPEC members, notably Saudi Arabia, need a fiscal price of oil of $85 per barrel to pay for government and social spending. But at $60 per barrel, cash flow will not make it.

Its new public relations-lobbying in the U.S will require Sovereign Wealth Fund borrowing at market rates, which will be higher mainly because of U.S Senate sanctions over the murder of a Saudi journalist writing for the Washington Post. 

At the same time, many small and independent producers have break-even at $50 with high-interest debt!

There are Chapter 11 bankruptcies valued at $140 billion from the Panhandle in Texas to the San Juan Basin that resulted from the OPEC -Saudi Arabian price and market share war of 2014-2016 against Southwestern small/independent shale and tight sands producers who now want reparations or damages."

Views: 91

Reply to This

Local Groups

Blog Posts

Forgotten Men and Women of Canadian Energy Industry Protest

Posted by Thomas J Shepstone on January 4, 2019 at 10:37am 0 Comments

The forgotten men and women of the Canadian energy industry are mad as hell and not taking it anymore. They’re protesting in their trucks and it’s spreading.

Whenever I go to New York City, which is as seldom as…

Continue

Events

© 2019   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service