Originally posted by denowt
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Hey Oilfield Guys!!
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ugh...
Oil Falls to One-Week Low as U.S. Supply Seen Adding to Surplus
(For more on oil’s decline, click EXT5 <GO>)
By Grant Smith
(Bloomberg) -- Oil declined to a one-week low in New York on estimates that U.S. crude inventories increased from a record level.
West Texas Intermediate futures slid as much as 4.6 percent. Crude supplies probably rose by 3 million barrels to 420.9 million through Feb. 13, according to a Bloomberg survey before a report from the Energy Information Administration Thursday. That would be the highest in weekly records compiled by the EIA since August 1982. Industry data Wednesday showed inventories climbed by 14.3 million barrels, according to reports on Twitter.
The fastest U.S. crude production in three decades helped trigger a global glut that pushed oil prices almost 50 percent lower in 2014. Energy explorers are paring drilling rates and investment in response to the slump, with Marathon Oil Corp. announcing on Wednesday it will cut an additional 20 percent from its spending plan for this year.
“The market is signaling an oversupply of crude that can only lead to lower prices,” Christopher Bellew, senior broker at Jefferies International Ltd. in London, said by e-mail. “All the fundamentals, barring the decline in the U.S. rig count, suggest that non-OPEC output will not start to fall until the third quarter.”
WTI Gain
West Texas Intermediate for March delivery dropped as much as $2.41 to $49.73 a barrel in electronic trading on the New York Mercantile Exchange, the lowest since Feb. 12. The contract was at $50.04 at 1:14 p.m. London time. The volume of all futures traded was about 34 percent above the 100-day average for the time of day.
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EOG announced a 40% reduction in drilling expendature for 2015. They've reduced their drilling plans from over 500 net wells in 2014 to around 350 in 2015. They also stressed a commitment to defer frac and completions until oil prices improve.
So, drilling could continue at a reduced rate but frac and completion crews are gonna take the biggest hit.
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Largest weekly build of inventories ever. Where are they gunna store all of this excess oil?
Last edited by JMalin; 02-19-2015, 09:01 AM.
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Originally posted by hammer63 View PostEOG announced a 40% reduction in drilling expendature for 2015. They've reduced their drilling plans from over 500 net wells in 2014 to around 350 in 2015. They also stressed a commitment to defer frac and completions until oil prices improve.
So, drilling could continue at a reduced rate but frac and completion crews are gonna take the biggest hit.
and then the flip side from Goldman
[ame="http://www.youtube.com/watch?v=yWVoI7Pjxkw"]Oil Can Drop to $39 a Barrel Goldman Sachs's Currie Bloomberg Business - YouTube[/ame]
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Originally posted by Legdog View Postforbes EOG link
and then the flip side from Goldman
Oil Can Drop to $39 a Barrel Goldman Sachs's Currie Bloomberg Business - YouTube
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Originally posted by ladrones View PostI read a local article that says that Devon will slow the fracing and completions to wait out better oil pricing. Cutting way back on rigs as well.
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