U.S. Oil Production needs at least $60/bbl to grow again
Posted: Wed Sep 23, 2020 9:07 am
US shale production can reach new highs beyond 13 million b/d, but needs $60/b: Rystad < In my opinion, it will take at least $65/bbl WTI for many months before we see the active drilling rig count get back to what's necessary to grow U.S. oil production. It will take at least 600 rigs drilling for oil and today there are only 180 rigs drilling new oil wells in the U.S..
https://www.spglobal.com/platts/en/mark ... 60b-rystad
"A dearth of well drilling for most of this year and into 2021 should gradually bring up prices to a level around $60/b WTI needed to restart activity, which has languished from the twin bogeys of low oil demand and low prices, upstream specialists said at the Rystad Energy 2020 Americas Virtual Annual Summit.
"If supply is to keep up with demand, we need a lot of shale volumes going forward," Leslie Wei, Rystad's vice president of E&P research, said. "We believe shale needs to deliver 6 million-11 million b/d from wells not yet drilled." To unlock this activity and restart a new shale activity upcycle, "we believe oil prices need to recover significantly from today's levels,"
https://www.spglobal.com/platts/en/mark ... 60b-rystad
"A dearth of well drilling for most of this year and into 2021 should gradually bring up prices to a level around $60/b WTI needed to restart activity, which has languished from the twin bogeys of low oil demand and low prices, upstream specialists said at the Rystad Energy 2020 Americas Virtual Annual Summit.
"If supply is to keep up with demand, we need a lot of shale volumes going forward," Leslie Wei, Rystad's vice president of E&P research, said. "We believe shale needs to deliver 6 million-11 million b/d from wells not yet drilled." To unlock this activity and restart a new shale activity upcycle, "we believe oil prices need to recover significantly from today's levels,"