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U.S. Producers Ready New Oil Wave
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Ailworth and Faucon describe the ways in which shale oil producers such as Continental Resources in Texas and S. Dakota are responding to the drop in oil prices. One strategy adopted is to put off 60% of the expense of production by not completing the final stages of production of hydraulic fracturing, but keeping the wells ready so that production can quickly be ramped up if prices go to the $60-65 range. EOG Resources, Andarko, Apache, Chesapeake Energy, are also following this strategy. There are about 3000 such wells, not pumping but drilled and ready for hydraulic fracturing, according to RBC Capital Markets estimates. This strategy would mean large shale oil supplies well into the future to keep oil prices low. Production from lower cost wells continues with U.S. oil production climbing to a new high of 9.4 million barrels a day for week ending March 6, 2015, according to federal data. This shows that this is a new situation and the resilience of shale oil supplies may have been underestimated. Another strategy adopted by other large companies such as Exxon is to continue to develop technology by learning to get the oil out of the rock in the most cost efficient way. The capital investment in U.S. shale oil has dropped by $50 billion in 2015 compared to 2014. The number of oil rigs drilling declined to 866 in the U.S. by March 2015, according to Baker Hughes.
Exxon and learning "to get the oil out of the rock in the most cost efficient way" - declining costs of shale oil production and the future for oil prices 2015-2020
03/06/2015
Grouped Articles
Exxon Mobil: Shale to the Chief
Wall Street Journal 03/06/2015
U.S. Producers Ready New Oil Wave
Wall Street Journal 03/14/2015
Non-U.S. Shales Prove Difficult to Crack
Wall Street Journal 03/19/2015
OPEC’s Problem: There Is No Minister of Shale
Wall Street Journal 06/03/2015
Two Years Into Oil Slump, U.S. Shale Firms Are Ready to Pump More
WSJ 09/27/2016
How American Shale Drillers Flipped OPEC’s Script
WSJ 05/24/2017
The Economist and WSJ on shale oil, the Saudis and oil prices in 2015 and beyond
01/13/2015
The Economist points out that shale oil production technology is at the early stages with production costs likely to come down from an average of $57 a barrel. With the relatively small costs to start drilling in shale deposits and extensive new shale deposits in the U.S. and other parts of the world, shale is likely to remain a factor in oil production and prices for a long time. Any impact of Saudi oil price cuts on shale oil production is likely to be temporary, as new advances in the technology and efficiency will make shale oil a serious source of oil supplies. Already some efficient shale oil producers have costs below $35 a barrel in the U.S., according to the CEO of CSX Railroad. CSX has dropped the fuel surcharge to improve the competitiveness of shale transported by rail from the Bakken shale region in N. Dakota.
Grouped Articles
The new economics of oil: Sheikhs v shale
Economist 01/13/2015
Back to the Future? Oil Replays 1980s Bust
Wall Street Journal 01/14/2015
New King in Saudi Arabia Unlikely to Alter Oil Policy
New York Times 01/23/2015
Exxon Mobil: Shale to the Chief
Wall Street Journal 03/06/2015
U.S. Producers Ready New Oil Wave
Wall Street Journal 03/14/2015
Shale-Oil Producers Ready to Raise Output
Wall Street Journal 05/14/2015
Shale oil and U.S. /North American oil supplies
06/16/2011
Grouped Articles
How North Dakota Became Saudi Arabia
Wall Street Journal 10/01/2011
Global Oil Glut Sends Prices Plunging
Wall Street Journal 10/15/2014
The Oil Price Swoon Won’t Stop the Shale Boom
Wall Street Journal 10/23/2014
Wall Street Journal 01/06/2015
The new economics of oil: Sheikhs v shale
Economist 01/13/2015
Back to the Future? Oil Replays 1980s Bust
Wall Street Journal 01/14/2015
U.S. shale oil production and the oil price decline in 2014-2015
10/23/2014
Grouped Articles
The Oil Price Swoon Won’t Stop the Shale Boom
Wall Street Journal 10/23/2014
Refining Saudi Arabia’s Oil Strategy
Wall Street Journal 11/03/2014
Oil Prices Slip Further After IEA Report
Wall Street Journal 12/12/2014
How Crude Oil’s Global Collapse Unfolded
Wall Street Journal 12/14/2014
Wall Street Journal 01/06/2015
Oil’s Fall Continues Into 2015, and Stock Markets Shudder
New York Times 01/05/2015
U.S. shale oil producers confounding Saudi price strategy- (1) 77 U.S. companies acting like tech startups with access to capital markets
03/14/2015
Linked Articles
OPEC’s Problem: There Is No Minister of Shale
Wall Street Journal 06/03/2015
U.S. Producers Ready New Oil Wave
Wall Street Journal 03/14/2015
Learning in shale oil production for cost efficient ways suggest continuing growth in U.S. shale oil supplies for 2015-2020
03/06/2015
Linked Articles
U.S. Producers Ready New Oil Wave
Wall Street Journal 03/14/2015
Exxon Mobil: Shale to the Chief
Wall Street Journal 03/06/2015
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