OPEC raises global oil demand forecast for 2026    Saudi Pro League unveils 2025-26 fixture list with blockbuster opening clashes    Donations of living organs rise to 4.9% in Saudi Arabia in 2024    Saudi Arabia strongly condemns Israeli decision to fully occupy Gaza    Elon Musk threatens to sue Apple for not ranking X or Grok among its top apps    Ukraine's borders must not be changed by force, EU leaders say    At least 100 Palestinians killed in Israeli attacks across Gaza    Jellyfish force shutdown of France's Gravelines nuclear plant after clogging cooling system    More than 2,000 evacuated from Spanish resort of Tarifa over advancing wildfire    Prince Saud bin Mohammed Al Saud wins International Sword at Sandhurst    GASTAT: Nearly 70% of Saudis under age of 35    Saudi Arabia exit FIBA Asia Cup after overtime heartbreak against Philippines    Sudanese PM thanks Saudi leadership for unlimited humanitarian support    Cristiano Ronaldo and Georgina Rodriguez announce engagement after eight years together    Bahri categorically denies transporting shipments to Israel    Saudi Arabia's ranking on Mining Investment Attractiveness Index jumps to 23rd from 104th globally    Mexico accuses Adidas of cultural appropriation in sandal design    Saudi Film Commission invites local filmmakers to submit for first-ever Oscar entry    Al Hilal sign Uruguay striker Darwin Núñez from Liverpool    Saudi woman donates 80% of her liver to co-wife in rare act of generosity    Sholay: Bollywood epic roars back to big screen after 50 years with new ending    Ministry launches online booking for slaughterhouses on eve of Eid Al-Adha    Shah Rukh Khan makes Met Gala debut in Sabyasachi    Pakistani star's Bollywood return excites fans and riles far right    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



US shale oil output set to drop in 2020
Published in The Saudi Gazette on 16 - 04 - 2020

Due to the combined effect of the Covid-19 pandemic and the low oil prices, US shale operators are reducing spending, production and overall activity in 2020. Although the country's oil production was previously poised for annual growth of 8.1%, based solely on interpretation of operators' guidance, Rystad Energy is projecting a decline of at least 2.7% year-on-year (US Lower 48 excl. Gulf of Mexico).
As shut-ins, reductions in spending and activities weigh in, the fourth quarter of 2020, which was projected to see a year-on-year oil production increase of 650,000 barrels per day, is now instead forecast to see a reduction of 1.5 million bpd. In other words, production for the quarter will be lower by some 2.15 million bpd compared to what was expected before the Covid-19 crisis.
US shale oil production in the fourth quarter of 2019 averaged around 10.4 million bpd. For all of 2020, it is now expected to fall to about 9.6 million bpd from 9.9 million bpd in 2019. These numbers are, as stated above, based solely on company guidance, and our own 2020 forecast is slightly more pessimistic as we expect production to decline further to 9.5 million bpd, down around 4% from 2019.
"The production slide in 2020 may accelerate even further, as private operators are likely to respond faster with decisions of additional activity cuts. Also, production curtailments that could be implemented by a larger number of operators could lower the actual oil output even more," says Rystad Energy vice president North American shale and upstream Veronika Akulinitseva.
Over the last weeks, Rystad Energy has registered additional capital budget reductions communicated by a number of US shale operators. In total, all revised US shale producers combined have so far reported plans to slash 38% off their previously announced 2020 capital budgets, which implies a cut of nearly 42% compared to 2019 spending.
Some of the producers have clearly communicated new expected oil production volumes for the year, while the potential impact for the others has been estimated by Rystad Energy's shale team.
It should be noted that these numbers could represent rather conservative estimates as the approach used assumes the same impact on wells put on production (POPs) as on spudded wells and does not account for additional acreage upgrading, increased focus on sweet spots and potential production efficiencies that are likely to be realized by these producers. — Rystad Energy


Clic here to read the story from its source.