US shale production could not stand low oil prices


The US oil market is collapsing. Shale production could not stand low prices for raw materials (even $ 25 per barrel) and the number of drilling rigs began to decline sharply. It is assumed that this will be the most serious reduction in their number in the history of shale production in the United States.


According to the American company Baker Hughes, the third largest oil and gas service company in the world after Schlumberger and Halliburton, the number of operating drilling rigs in the United States fell to 404 in early May. At the same time, at the end of 2019, there were about 800 of them.

Reuters said that the current number of operating drilling rigs in the United States is only four more than in May 2016. Then there was also an oil crisis. The price of raw materials declined for 8 consecutive weeks, which was the longest period of decline since 1986.

According to Raymond James forecasts, by the end of 2020, the number of drilling rigs in the United States will decrease by another 50%, i.e. they will remain about 200 pieces. At the same time, neighboring Canada at the end of April 2020 set an anti-record for operating drilling rigs - their number was reduced to 26 pieces.

It should be noted that shale production differs from production in the traditional way in that it requires the drilling of a large number of wells that are rapidly depleted. It is this feature, the number of operating drilling rigs, that is an indicator of production in the United States.

We remind you that in April 2020, the US Department of Energy predicted that oil production in May this year would naturally decrease by 800 thousand barrels per day, and by October 2020 - by 1,8 million barrels per day.

At the same time, in the US states where oil production is underway, regulators have not decided to forcibly reduce oil production due to the global crisis caused by the COVID-19 pandemic. However, mining companies were forced to independently reduce production due to falling prices. Indeed, the cost of shale oil production for most companies engaged in this in the United States is about $ 40 per barrel.

As for those companies whose cost of oil production is much lower than $ 40 per barrel, there is simply no place for their products, not only in land-based storage facilities, but even in floating ones. As the reserves of the colossal international tanker fleet come to an end, companies are fighting for each ship.
  • Photos used: https://pixabay.com/
20 comments
Information
Dear reader, to leave comments on the publication, you must to register.
I have an account? Sign in
  1. Sergey Latyshev (Serge) 9 May 2020 14: 49
    -4
    Yes, it's time to remember how to read between the lines.
    Not the number of drilling rigs, but the “working drilling rigs”. Those. buttons pressed, and turned off until time.

    But how did the crash affect the buck? Maybe he slipped below 60 rubles? ... not noticeable .... as long as they trust crash more than not crash.
    1. Alexei Ushakov Offline Alexei Ushakov
      Alexei Ushakov (Alexey Ushakov) 9 May 2020 16: 19
      +2
      Those. the buttons are pressed, and turned off for a while)))) It's straight Enchanting! A masterpiece!
      1. Sergey Latyshev (Serge) 9 May 2020 18: 31
        -5
        And how else, if simplified. Disconnected, got, if necessary, canned. They are waiting for the situation to improve.
        In a pile of Amer’s films, the hero works as a caretaker on the field of installations pumping oil (a black streak of life). Then bang, something happens, he turns the switch, they stop pumping, he leaves (to look for a bright band).
        Все.
        Until the next movie.

        Although, if you write down the correct process, I will be grateful. How's the rigs shutting down properly?
        1. Alexei Ushakov Offline Alexei Ushakov
          Alexei Ushakov (Alexey Ushakov) 9 May 2020 20: 46
          +2
          Goodooh. Let's go from afar. Why can not stop burning a blast furnace? Blah blah. When the furnace cools down, the pig iron together with the slag will begin to cool and naturally harden (very schematically). Then you need to disassemble the bottom of the furnace, cut out everything with oxygen, etc. But there is one big word, how to call all this disgrace)
          1. Sergey Latyshev (Serge) 9 May 2020 23: 06
            -2
            Thank. That is, if you turn off the rigs, then you can’t turn them on? Should I start drilling again?
            But the installation itself remains at least intact or, too, "it is necessary to disassemble, cut everything out with oxygen ..."?

            Wah! How much you learn sometimes by accident.
            1. Alexei Ushakov Offline Alexei Ushakov
              Alexei Ushakov (Alexey Ushakov) 10 May 2020 11: 02
              +2
              If desired, everything is possible. It’s just very expensive! You can, of course, burst into a lecture. ((The sequence of work on the conservation of completed construction of the well)) But even when I studied in the Ukhta state. University. And already worked pom. Pambura KPC did not fully understand.
              1. Sergey Latyshev (Serge) 10 May 2020 14: 44
                -1
                Well, at least a few words !!!
                How do these insidious Americans turn off their drill ???? (well, we, in principle)
                those. not like pumping?
                This is a rare infa. Quickly searched through - not found. Only about water, in the country.
                I knew about the stove, this info is not so rare.
                1. Alexei Ushakov Offline Alexei Ushakov
                  Alexei Ushakov (Alexey Ushakov) 10 May 2020 17: 01
                  +1
                  All these maps are based on hydro-geo-meteo data. (I don’t think. That overseas is somehow different). They are painted specifically for which terrain, which mine, which cap should be used for the plug))) "Muffling" is not a problem. The problem is then to re-develop this site. Immediately plus + - 30% of the cost of the first development. Ah, and still Freeloaders! Sorry, Contractors. After all, contracts were also drawn up with them, and not for a day, but for decades. That is, they must also pay a "forfeit" upon closing.
                  1. Sergey Latyshev (Serge) 10 May 2020 17: 20
                    +1
                    Thank. A bit incomprehensible, but thanks anyway.

                    Those. "cut with oxygen" is not necessary. We got ... uh ... a drill, put a chebchek, turned off the switch and put it next to ... uh ... drills. And left until better times. Ah, yes .... Contractors forfeit unfastened.

                    And "+ - 30% of the cost of the first development" what for?

                    That's how Trump would have promised to rake everything up by the end of the year, rake it, the workers arrived next summer ..... what next?
                    1. Alexei Ushakov Offline Alexei Ushakov
                      Alexei Ushakov (Alexey Ushakov) 10 May 2020 18: 18
                      +1
                      To be honest, I don't like politics. I am an apolitical person. But it seems to me (purely my opinion, what is happening now is just weighing the “bream” of the USA so that it doesn’t “bull” it. As soon as the prices go up, everything will settle down. Everyone will remain with their own.
                      1. Sergey Latyshev (Serge) 10 May 2020 19: 57
                        -1
                        Yes something like that. It's just that we are the main ones in the news, Ukrainians, yes YUSA.
                      2. The comment was deleted.
                      3. Alexei Ushakov Offline Alexei Ushakov
                        Alexei Ushakov (Alexey Ushakov) 10 May 2020 20: 19
                        +1
                        The truth in the middle. Some yell - Uraa, we all defeated. Others yell - Yuraaa, we all overslept! Old as the world. But there are facts. And they are that Our large corporations are tearing priests straight in order to establish an oil refining infrastructure. But they face two problems.
                        1. The lack of modern machine tools. Consequently, the wildest lack of equipment. The simplest example: even the famous "Zvezdochka" produces drilling equipment! What is this talking about?
                      4. Sergey Latyshev (Serge) 10 May 2020 20: 24
                        -1
                        Not special, but I guess.
                        At one time there was a caliber factory. Wow plant, traditions, territory, monuments.
                        But it already doesn’t release anything (all for rent), the museum has vernier calipers of different sizes and types and ... one vernier caliper with a digital nozzle ....
                2. Alexei Ushakov Offline Alexei Ushakov
                  Alexei Ushakov (Alexey Ushakov) 10 May 2020 18: 19
                  0
                  Well, if it’s straightforward to wonder how this happens, the “Instruction on the procedure for liquidation, conservation of wells and equipment of their mouths and shafts.

                  https://files.stroyinf.ru/Data2/1/4294845/4294845996.htm

                  1. Sergey Latyshev (Serge) 10 May 2020 20: 18
                    0
                    Thank you so much. Just what you need. The language, however, is official.

                    The paragraph applies to the article: 3.3. Preservation of wells, completed construction.

                    Total:
                    Preservation is carried out to save the well for the customer.
                    3 types of liquid are pumped (from corrosion, from cold, to maintain pumping in the layer), Lift pipes, but do not completely remove, Remove excess sensors, plug, hang up a plate with full information, protect, clean.

                    All. You can go for a forfeit.
                    And the customer is waiting for prices to rise and his teams will come back.

                    In principle, I meant this - “I pressed the buttons” (I didn’t write about liquids, plugs and cleaning, yes), but it was described in more detail and correctly.

                    Thank you so much again!
                  2. Rum rum Offline Rum rum
                    Rum rum (Rum rum) 10 May 2020 21: 31
                    +1
                    Customer - pays interest on loans, oil storage facilities for warehousing, you pay for drilling, workers pay ... and where is the profit? She was not enough before .... but now ........ what ....... bankrupt? Next time, when prices rise, the new “owner” will need money for re-conservation and new drilling, for salary, and money for such a risky business will be much more difficult to find. And if the "customer" does not have enough money to give to the drillers? Then the drillers .... and now ........ what ....... bankrupt? They also took loans ...... And yes, the workers are also loaned ...... And the banks too ......
                    Here is such a fun.

                    And preservation fluids cost money, and not small ones, but during re-preservation, the removal and disposal of these fluids.
                  3. boriz Offline boriz
                    boriz (boriz) 10 May 2020 22: 43
                    +3
                    There is one subtlety. This instruction is about ordinary wells. And in the post we are talking about shale. Pressure has been created in these wells, a fracture has occurred and oil must be pumped. As far as I heard in the videos of experts, the pressure there (if you stop production) will not last long, it will go somewhere, for example, into groundwater. And the gap will have to be done in a new way. And not the fact that it can be done a second time.
                  4. Sergey Latyshev (Serge) 11 May 2020 00: 42
                    0
                    Well, the oil industry is one of the richest producers. They were often cited as examples of the richest clans. We have the same way.

                    And: just in the article - that there is a gradual decline by the end of the year, not an abrupt stop (of all drilling, not only shale). That is, what’s needed - they’ll tear it up, what needs to be pumped up, and at some point they will stop / stopped. On the dismantling of the article no-no.
                    And they will wait.

                    And thanks for the info.
  • Brancodd Offline Brancodd
    Brancodd 9 May 2020 15: 54
    +2
    We give the floor to the Americans themselves. How is life in the "City on the hill"?

  • Alexei Ushakov Offline Alexei Ushakov
    Alexei Ushakov (Alexey Ushakov) 10 May 2020 16: 48
    +1
    Why are Americans insidious? They are great in this regard! They use a method that was developed in the USSR back in 60. I personally do not believe that everyone won "Amereka".
    It's just that their economy works differently. The so-called "Nothing personal - it's just business", the weak will die. The strong will survive, and when everything falls into place, they will simply buy these plots and develop them anew (the oil has not gone anywhere). And as for how wells are closed - they are "drowned", for this there are special technological maps.