The hottest shale industry in the United States ma

2022-08-11
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The U.S. shale industry may not be able to recover to the level before the outbreak of the epidemic

according to today's oil price report, the crisis in 2020 suddenly ended the growth of U.S. crude oil production. You know, before oil prices and demand plummeted with the spread of the COVID-19, U.S. crude oil production just reached 13million barrels/day. Between March and may 2020, U.S. oil production fell by 2.5 million barrels per day, as oil companies cut drilling expenditures and production in response to low oil prices. In May 2020, U.S. oil production reached 10million barrels per day, the lowest monthly level since the end of 2017

after the trough in May, the oil production of the United States has been gradually increasing, because the producers have resumed the reduced production, and the oil price has also recovered from the losses in early 2020. The reason is that the optimistic news about vaccines has brought the long-awaited recovery of oil demand to the market, and finally the hope is just around the corner

the US Energy Information Administration (EIA) predicts that US oil production will remain at about 11million barrels per day for at least one year. Because the production of existing oil wells in the shale area of the United States will decline faster than the production growth rate brought about by the number of new wells. However, some analysts said that the market sold shale oil in the United States too quickly, and the rebound in U.S. oil production in 2021 will surprise the market

some people even think that the EIA deliberately released more pessimistic expectations than reality, with the purpose of "fooling" OPEC to continue to intercept a large amount of oil from the market and maintain the oil price at about $50 a barrel, which will help the U.S. production jump this year

Philip K. verleger, an energy economist, said that the EIA underestimated the crude oil production of the United States in recent months, which will confirm the statement of senior oil company executives such as Scott Sheffield, CEO of pioneer energy, that the U.S. production will only increase slightly in this year and next two years

verleger energy consulting firm pkverleger estimated that the daily oil production of the United States at the end of November 2020 was 12.4 million barrels, while the EIA estimated that it was 11 million barrels

in early December, pkverleger said in a report: "oil exporting countries have been deceived. They agreed to limit production growth to support oil prices, which laid the foundation for the resumption of U.S. oil production." In its latest short-term energy outlook (steo), the EIA predicts that U.S. crude oil production will fall from 12.2 million barrels per day in 2019 to 11.3 million barrels per day in 2020 and 11.1 million barrels per day in 2021. According to EIA estimates, increased drilling activities in response to rising oil prices will drive production to 11.4 million barrels per day in December 2021

the Federal Reserve Bank of Dallas' fourth quarter energy survey showed that the outlook for the U.S. oil industry has improved significantly in recent months. The business activity index rose from -6.6 in the third quarter to 18.5 in the fourth quarter. The survey shows that this is the first time that the business activity index has been positive since the first quarter of 2019, driven by the exploration and development of the large-scale swelling effect of printing elastomers on solvents and the efficient adsorption and desorption of microporous structures by oil field service companies. In addition, most exploration and Development Executives (72%) expect their companies to obtain funds from non bank sources in the next 12 months

an exploration and production executive said in the Dallas fed survey, "exploration and production and supplier integration need to be increased to reduce large systematic costs."

Bloomberg Nef (bnef), a research company under Bloomberg, said in a report that under the pressure of the sharp fall in oil prices and the need to adjust to the decline in oil demand, U.S. oil producers have slashed costs and managed to reduce the average breakeven cost of the past year by nearly 20% to $45 a barrel

Dan Eberhart, the CEO of Cana material testing machine ry, a private oil field service company in the United States, wrote in Forbes magazine that the decline in costs may further promote the rebound of shale oil in the United States this year

it is worth mentioning that not everyone is optimistic about the U.S. shale industry. You know, the current bankruptcy applications are still increasing, and merger transactions have delayed the development of smaller projects. It is difficult for shale oil development in the United States to return to the level of 13million barrels/day. Now, especially with the occurrence of project integration and people's real attention to the full cycle return and net present value of development projects, the economic situation will urge investors to abandon the development of small-scale projects

however, it is certain that the worst period of American oil production has passed since the butt welding of aluminum pipe and building material aluminum plastic pipe gb/t18997.2 ⑵ 003 aluminum plastic composite pressure pipe (butt welding) cj/t159 ⑵ 002. However, the fate of the shale industry in 2021 and 2022 will depend on capital, cost reduction and expenditure constraints, as well as global oil demand and the support of OPEC policies for oil prices

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