Midland-based Diamondback Energy said Tuesday it lifted its reduction in May of about 9,000 barrels of oil production per day and resumed pumping from its shut-in wells in June. Travis Stice, CEO, said, “With oil prices having recovered significantly since the decision to curtail production was made in April, Diamondback returned this production through the […]
EIA report: Crude oil production to continue to decline in August
U.S. crude oil production from seven major shale plays is expected to decline by about 56,000 barrels per day in August to about 7.49 million b/d – the lowest in two years – according to Monday’s monthly drilling productivity report from the U.S. Energy Information Administration. The biggest decline is expected in Eagle Ford in […]
This is NOT the 1980s
Oil production costs are down sharply in Texas in recent years, but they are not yet at a level to maintain viability given current prices and uncertainty. As a result, significant disruptions in oil production areas are occurring. The industry initiated a rapid shutdown of drilling activity, which rippled through an enormous supply chain and […]
GlobalData: Coronavirus Creates Supply Chain Upsets
Following the coronavirus (COVID-19) outbreak, China—the world’s biggest importer of crude oil—has been forced to cut down on consumption. The resulting oil price crash is having a cascading effect on forward and backward industrial supply chains, as well as oil and gas projects across the value chain. These are likely to result in changes in […]
Nowhere to Go: Oil Cuts Loom
IHS Markit expects up to 10 MMb/d of world oil production will be cut or shut-in from April to June 2020 as oil storage fills up and output from financially strapped companies begins to fall. If oil cannot be sold or stored, it cannot be produced. Transportation constraints and lack of access to every available […]