Shale oil’s investment cycle is shorter and its decline profile sharper than conventional oil production. Current indicators suggest legacy declines from shale will catch up fast with the industry. This points to a sharp deceleration in US shale oil output. But, while conventional oil takes time to slow down, it also takes time to speed up. It will be shale that is best placed to benefit from any oil price recovery, as Ross McCracken, managing editor of Platts Energy Economist, explains in this month’s selection from the publication. The full analysis can be found in the February 2015 issue, which is also issue 400 of Energy Economist.
Posts Tagged ‘shale’
By Ross McCracken | January 29, 2015 11:14 AM Comments (2)
By Brian Scheid | December 11, 2014 11:25 AM Comments (0)
Want to dazzle party guests this holiday season with a data-backed argument that the US oil boom may have peaked? Well, the US Energy Information Administration has a report you should probably read.
Want to shut up that obnoxious blowhard who keeps using EIA data to support his argument that the glory days of US oil may have gone by? Want some government data of your own to defend your claim that we have yet to see the peak of US oil production?
I have good news: You can use the same report.
By Elizabeth Bassett | December 10, 2014 05:34 PM Comments (3)
The end of December is just around the corner, and it’s typical at this time of year for publications to take a grand look backward to sum up the year. What kind of proclamations can we make about the global oil industry in 2014? What sort of lessons are there to be learned, and how will we look back on 2014 years from now?
As tempting as it may be to take that look in the rearview mirror, today we’re going to look ahead with our December version of The Oil Big Five. By now you know the drill: We ask our Platts editors and analysts in offices around the globe what they think are the biggest issues or topics in the oil world for the upcoming month, and then we ask you for your thoughts. Are we right, are we wrong, and what do you want to see covered? Leave us your comments here or with #oilbig5 on Twitter.
By Steven Kopits | December 10, 2014 01:14 PM Comments (19)
The media is replete with stories of low oil prices killing the shale revolution. This is not going to happen, and here’s why: the world remains dependent on US shale oil production growth.
We at Princeton Energy estimate that oil demand should grow at around 1.6 million b/d per year at $80/b, on a Brent basis, with that demand improvement becoming evident from the second half of 2015.
Now, where would supply growth come from to meet that demand?
By Christine Forster | November 21, 2014 12:01 AM Comments (2)
A small Australian upstream company, with the appropriate name of American Patriot Oil and Gas, is hoping to achieve what several of its peers have been unable to do: turn a little into a lot in the US market.
American Patriot’s business model is simple, yet crucially different from that pursued by some other small Australian companies that have burned through their own capital trying to make a go of it in US conventional and unconventional oil and gas, according to the company’s CEO Alexis Clark.
By Starr Spencer | August 12, 2014 12:01 AM Comments (0)
Perhaps the most striking thing upstream companies revealed in their recent round of second quarter calls was the astounding production increases from US unconventional plays brought about by an array of tweaks to well drilling and completion techniques.
One tactic they’re using to eke more hydrocarbons from the ground is optimized well spacing — configuring wells as close as possible to best drain the reservoir without interference. Other techniques are placing hydraulic fracture sections or “stages” closer together and using more proppant to hold fractures open so oil and gas can flow more easily from the reservoir.
It’s taken a few years for operators to figure it all out, but about four years after they began widespread exploitation of unconventional oil plays, which are the current focus of most large companies, they are largely approaching full development mode. In the meantime, they have seen staggering production growth, especially on the crude oil side.
By William Powell | July 10, 2014 12:01 AM Comments (1)
The fate of US LNG import terminal projects was sealed as the amount of relatively low-cost gas produced onshore soared in the middle of the last decade. Most of them were scrapped before getting off the drawing board, but the more advanced of them, notably Cheniere’s Sabine Pass, went on to become export terminals, in a radical and apparently successful bid to salvage their backers’ fortunes.
That well-documented transformation was only made possible by the yawning price difference opening up between the depressed Henry Hub and the rest of the world.
By Elizabeth Bassett | July 8, 2014 03:49 PM Comments (2)
You’ve read about the big topics our Platts experts think are most interesting for July, and now we want to turn our attention to our readers.
In our monthly The Oil Big Five feature, we poll our global oil experts for what they consider the most pressing or interesting aspects of the oil industry at the moment. We follow each post by rounding up some of the comments, and below you can see (in no particular order) some of the reactions we had from our readers, both on the blog as well as on social media.
By Caitlin Laird | June 30, 2014 11:30 AM Comments (0)
The most recent US Department of Transportation report on road traffic reveals more travel in three states thanks to shale industry growth.
The increase in road travel in April 2014 compared with April 2013 was 1.8%, according to the Traffic Volume Trends report, released this month. The monthly report compares changes in estimated vehicle-miles of travel using hourly traffic count data.
By Michael McCafferty | June 27, 2014 11:30 AM Comments (1)
The US petrochemical industry might be buzzing about all the cheap ethylene it can now make thanks to inexpensive ethane from shale gas plays. And while that certainly is helping position US polymer producers nicely in the global marketplace, there is another side to the shale coin.