What will happen to shale mining in the USA in the near future
By the end of June, US shale producers will return to the world market about 500 thousand barrels of oil per day. This was reported by Reuters with reference to unnamed market participants.
“It is expected that US shale companies will restore production of about half a million barrels of oil per day by the end of June. This is about a quarter of the volume by which production was reduced during the COVID-19 pandemic, ”the agency notes. .
However, the US Department of Energy on June 9 in its monthly short-term forecast lowered its forecast for oil production in the country for 2020 a year at 130 thousand barrels per day – up to 11.56 million barrels. And in 2021 – at 60 thousand barrels, up to 10.84 million barrels per day.
US shale industry on the eve of the collapse?
But analysts generally believe that the US is on the verge of a record oil collapse. The number of gas and oil rigs has dropped to a minimum, production is steadily declining. Companies massively file for bankruptcy and suspend operations.
In June, another major shale producer, Extraction Oil & Gas, fell victim to a collapse in oil prices. According to forecasts, this year alone more than a hundred firms will go bankrupt. Analysts are waiting for the collapse of the shale industry if oil prices do not return to pre-crisis levels.
According to Haynes & Boone, since January 36 oil and gas companies have launched bankruptcy proceedings with a combined debt of about $ 25.2 billion. Among them, one of the largest Whiting Petroleum shales, as well as California Resources and the pioneer of the shale industry, Chesapeake Energy.
And according to Rystad Energy analysts, about 140 US oil and gas companies will file for bankruptcy this year. Shale production in the United States may fall below 5 million barrels per day. As a result, ShaleProfile Analytics predicts that the United States will miss out on a third of the shale industry.
It is impossible to return to previous production levels amid falling demand caused by the pandemic. “Most likely, it will be years before the shale industry reaches the same level again, if it ever happens,” states The Wall Street Journal.
According to a study by the Federal Reserve Bank (FRB) of Dallas, even in relatively “cheap The West Texas shale Permian shale for oil needs an average of $ 49 a barrel for profitability. According to the Federal Reserve Bank, at 40 dollars only 15% of producers will survive during the year. : ///
Record What will happen to shale mining in the USA in the near future first appeared TEKNOBLOG .
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