against the background of rising oil prices to 40 dollars per barrel, the major American producers of oil and natural gas (Continental Resources Inc., EOG Resources Inc., Parsley Energy Inc) announced the resumption of production at the closed wells.
Despite positive developments, the experts predicted a bleak future for the US oil shale industry, which was faced with a strong decline of oil production, according to Bloomberg.
oil Production is approximately 16 percent below the maximum value recorded at the beginning of the year. To reach the previous highs when oil production was 13 million barrels per day, will not until 2023.
Long before the pandemic, the investors insisted that the company cut costs and spent more of that income.
in Addition to deficit of funds, difficulties arise due exhaustion of known reserves and the need to develop new fields. In the United States today, there are 189 active rigs (72% less than it was in March), which is one of the lowest figures since the start of the shale revolution.
the Us shale industry for about 15 years has grown steadily. During this period, the production volume has increased more than two times — up to eight million barrels per day. It’s more than the US could get control of Iraqi and Kuwaiti oil fields in the framework of the invasion of the President Bush in 2003.
But this achievement was worth the huge cost. Over the past 11 years, shale operators spent about 340 billion dollars, using loans and funds received from investors with wall street. as soon As in March, oil prices began to fall, manufacturers of slate cut unnecessary costs from private jets to drilling rigs and employees. Fell by 1.75 million barrels per day due falling demand in the market, triggered by the introduced due pandemic COVID-19 restrictions.
From record of reducing the number of active rigs of the USA in danger of losing up to a third of shale oil production. Many companies losses amount to 30-50 percent for the year. While 15 of the largest shale companies in the country have cut their budgets for development of new fields by an average of 48 percent.
