Rystad Energy

The two-well stimulation approach is delivering big savings to first adopters. A new report from Rystad highlights how the development is taking shape.

The good news for next year is no one is predicting a repeat of what happened this year. The bad news is the outlooks offers little incentive to find any more oil.

In an updated projection, Rystad said that a breakeven of only $50/bbl is needed to produce 100 million BOPD in 2025, reflecting the reduction in oil-production costs.

Rystad Energy compared the decommissioning costs based on two similar steel platforms, one in each region, using its cost-estimating tool.

Enterprise Products Partners publicly acknowledged the deep slump in pipeline demand out of the Permian Basin by canceling a project at a time when most producers have been quietly postponing US projects.

Several E&P and OFS companies have already filed for Chapter 11, but unless prices strengthen the total number of filings could be as high as 190 by 2022.

Based on the early results from mass shut-ins of shale wells, it did not harm long-term production and it paid a short-term dividend with more oil flowing in the days after restarting.

Among the top 50 oilfield service firms, downsizing is estimated to land at a headcount of 610,000, down from the 760,000 maintained after the 2016 downturn.

The forces of low oil prices and new efficiency trends are converging to remake the US pressure-pumping business into one that can complete more wells with less horsepower than ever. However, that might also mean service provider margins remain low for much of this new decade.

Although oil prices were down on 8 June, the market is expected to see higher prices in response to the OPEC+ decision to continue production cuts.