The hottest shale oil producer in the United State

U.S. shale oil producers make a comeback

U.S. shale oil producers make a comeback

November 15, 2016

[China paint information]

since the area of desertification and desertification in China has shrunk since 2004

due to trump's victory in the U.S. presidential election and OPEC's recent hint of plans to limit oil production, U.S. shale oil producers cautiously believe that the energy industry has turned around and are redeploying funds Drilling rigs and workers

the two-year decline in oil prices has prompted the U.S. shale oil industry to streamline and improve efficiency, and has to develop and rapidly adopt new technologies to compete with traditional oil suppliers

"at the end of the tunnel, you finally start to see a little light," Ryan lance, the CEO of ConocoPhillips, the largest independent oil producer in the United States, said in an interview last week, "we began to redeploy funds, but we are cautious."

OPEC needs to finalize the details of the production restriction agreement at the meeting held in Austria later this month, especially the impact of the production restriction agreement on Member States. The preliminary agreement implies that Saudi Arabia, OPEC's boss, is very eager to end the two-year-old oil price war. This prompted us oil producers to take action

according to the data of navport, an oil field analysis company, since OPEC reached an agreement in September, the number of active drilling rigs in the United States has increased by 6%, and the number of active drilling rigs in major shale oil fields in the United States, such as Permian and Bakken, has increased

in addition, Trump's victory is expected to bring a force to the White House to support oil and gas exploration, which will promote the deregulation and encourage the development of the new energy industry

occidental Petroleum Corp, Chevron, pioneer natural resources and ConocoPhillips international are all companies that are increasing or preparing to increase drilling

according to the data of the American Energy Information Association (EIA), shale oil production in the United States this year is expected to decrease by 13% compared with 2015, and the decline will continue to 2017, and then rebound by 11% in 2018

investors pay attention to potential

investors in the oil industry are also optimistic and eager to see the return on investment increase after several years behind

"we fundamentally feel that the current level of energy prices is lower than that at some time in the future, and also lower than the equilibrium level of 60% cobalt in the long-term used hand motor pool," Tony James, President of Blackstone Group, said at the end of October

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analysts said that James' outlook reflects a general view of shale oil producers and their financiers that the industry has begun to improve

American oil producers have launched IPOs. This autumn alone, two applications were submitted by extraction oil gas Inc and Wildhorse Resource Development Corp

this is good news not only for the oil industry, but also for Wells Fargo and Bank of America (BOA), the largest lenders in the industry

oil "companies are now full of fighting spirit. They cut costs in order to maintain operations at the current oil price," a senior executive of a major private equity company in New York said last month. He refused to sign because he was not authorized to speak to the media. "These people will restart production."

of course, if the U.S. oil industry wants to make a comeback, it must comply with market fundamentals. Neither Saudi Arabia nor US President-elect trump can fully control the situation of massive oversupply and sluggish demand

US oil inventories increased by more than 14million barrels at the end of October, the largest weekly increase on record, which is related to the massive production of shale oil and natural gas

if American oil companies continue to increase production, they may make it difficult for OPEC to reach a production reduction agreement later this month, and push down oil prices voluntarily

"obviously, if the oil price returns to $25 a barrel, it will have an impact on our investment," said Al walker, CEO of Anadarko Petroleum Corp

however, the global demand for light and low sulfur crude oil produced by shale oil fields in the United States continues to increase. U.S. crude oil exports hit a record high in September, according to the U.S. Bureau of statistics

moreover, many enterprises have taken advantage of the rise in oil prices this year to hedge the oil prices in 2017 at least. This makes the executives of oil companies dare to increase their budgets

pioneer, regarded by Wall Street analysts as one of the shale oil producers with the best operating conditions in the United States, has hedged 75% of its 2017 production at an average of about $50 per barrel, which is beneficial to the high-speed experiment of non-metallic materials (rubber, etc.)

"these oil producers have restructured their businesses to make profits at low oil prices. They are moving forward." John Chisholm, President of flotek industries, said