The tight oil boom in the United States has been largely responsible for the present turmoil in the global oil markets. Average annual production growth in the U.S. has stood at about 1 million barrels per day over the last four years, taking production to current levels of over 9 million barrels a day. WTI crude, the U.S. benchmark, is currently trading at levels of about $47 per barrel, down by about 50% since mid-June 2014. The tight oil industry has been affected by the glut as well, owing to the high marginal cost of production (average break-even upwards of $60 per barrel, although this can vary by basin), which is making a large portion of U.S. production unviable at current prices. While unconventional sources account for just above 40% of total U.S. oil production, their impact on overall upstream activity and the broader oilfield services market is more profound due to significantly higher service intensities. Exploration and production related spending in North America could see cuts upwards of 30% this year, as operators face mounting pressure on cash flows. So what exactly are exploration and production firms doing on the oilfield to better cope with current situation, and how will this reflect on the oilfield services companies that we cover?
https://shaletrak.com/wp-content/uploads/2014/06/LOGO.png 0 0 admin https://shaletrak.com/wp-content/uploads/2014/06/LOGO.png admin2015-03-31 21:36:192015-03-31 21:39:06Forbes Article: Recent Trends In U.S. Land Drilling Market: Re-fracking, Growing Well Inventory, Lower Rig Count