Shale Oil: extractions also restart from the basins
US oil and gas companies are starting again to take interest in oil and gas deposits in shale, even with high extraction costs. This is because with oil at $ 90, all accounts change and what did not make sense to extract, because it is expensive, becomes convenient.
WTI oil futures price
The same oil projects that were closed during the onset of the pandemic are once again active and are now seeking "the purchase of property and the addition of rigs and frack crews," according to Reuters .
This is because benchmark oil prices have risen sharply, an increase of 63% in a year., Reaching the highest prices since 2014. All this when fuel prices have risen in double digits last year and it is not heard. plus the danger that OPEC + could intervene by lowering the prices of crude oil.
Chris Wright, chief executive officer of Liberty Oilfield Services, told Reuters, " The profitability of the drilling business today is better than it has ever been since the shale revolution began ."
Names like Colorado's DJ Basin, Wyoming's Powder River, Louisiana's Haynesville, and North Dakota's Bakken shale have all seen new activity in recent months.
Budgets for US oil producers increased about 13% year-over-year, Cowen noted. therefore, despite Blackrock and the feel-good pressures, the money begins to flow back into the industry.
Bob Phillips, managing director of pipeline company Crestwood Equity Partners, added: “If you look at the oil prices in the Bakken, the immediate price is close to $ 90 a barrel. This had not happened for some time ".
In the meantime, the mining sector had undergone a profound restructuring, with a series of mergers and acquisitions that made it more efficient and economically profitable. All this only increases the possibility of an overbearing recovery of Shale Oil, also because, at this moment, Biden is forced to relax if he does not want to see the Americans at their doorstep, angry at the very high cost of fuel. This increase in production could avoid oil over $ 100.
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The article Shale Oil: extractions restart also from the basins comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/shale-oil-ripartono-le-estrazioni-anche-dai-bacini/ on Thu, 10 Feb 2022 11:00:54 +0000.