When US shale producers return to pre-crisis production
The largest US producers of shale oil decided to resume production at previously closed wells. At the same time, the shale workers themselves believe that they can return to pre-crisis production no earlier than 2023.
However, Radio Sputnik columnist Kirill Bakeev believes that this forecast may turn out to be too optimistic. The question is, will there be the same demand for shale oil in 2023 as it was before the crisis caused by the pandemic?
In addition, the previous industry growth in the USA was ensured by huge investments in shale companies and not the most reasonable spending of funds by these companies . Will American investors again spend huge amounts of money on such a voracious sphere, even if it provided for high production? No, they will spend, but apparently, not in such quantities as before, Bakeev pointed out.
Many shale economists simply will not survive at such oil prices
And Western analysts do believe that the United States is on the verge of a record collapse in oil production. The number of gas and oil rigs has fallen to a minimum, companies are massively filed for bankruptcy and suspended.
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 shale producers, 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 one third of the shale industry. “Most likely, it will be years before the shale industry reaches the same level again, if it ever happens at all,” states The Wall Street Journal.
According to a study by the Federal Reserve Bank (FRB) of Dallas, even in relatively “cheap The Permian West Texas Shale Basin 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 When the US shale industry returns to the pre-crisis production level first appeared TEKNOBLOG .
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