Rystad Energy has the great pleasure of inviting you to our Annual Oil & Gas Summit 2016, which is happening in conjunction with our regular user meeting. This year our key event will take place in Houston and London. Join us to hear about our up-to-date market analyses and overview, industry perspectives and data analysis discussions.
September 20-21, 2016 Houston, United States
October 5-6, 2016 London, United Kingdom
The Annual Oil & Gas Summit is free to attend for client companies. To request more information, please vist our dedicated website. For query about non-client pricing, please contactRystad Energy
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"Average shale wellhead breakeven prices are below 40 USD/bbl" Rystad Energy's latest North American Shale Report shows that the average wellhead breakeven price has decreased on average by 22% year-over-year from 2013 to 2016. The most commercial wells currently exhibit breakeven prices between 25 and 30 USD/bbl. Among the key shale plays, Permian Midland has experienced the largest drop in breakeven prices, falling by 33% year-over-year on average from 2014 to 2016. Read more "Lowest offshore project commitments since 1998" Rystad Energy's latest analysis shows that amid the current market downturn, E&P companies have been hesitating to commit to greenfield projects. This will most likely result in only 43 billion USD being committed this year, over 75% less than the average volumes sanctioned from 2011 to 2014 when oil prices were at peak. In terms of the number of projects, only around 50 projects are expected to proceed, a number that historically has been threefold. These are the lowest offshore project commitments seen since 1998 when oil prices plummeted by more than 40% and E&P companies committed to only 38 billion USD worth of projects. Read more
"Depressing first half of 2016 for oilfield services but brighter times ahead" Rystad Energy expects horizontal oil completion activity in the US Shale to outpace drilling operations by 30% in 2H16, resulting in the contraction of DUC inventory by 800 wells. These additional completions will support total US oil output by providing an additional 300-350 kbbl/d to the exit-2016 rate. The additional output will be more than sufficient to balance the base production decline. The inventory of 4,000 drilled but uncompleted oil wells (DUCs) is estimated to hold close to 2 billion barrels of oil reserves. Read more
"2016 first half review for shale shows the bottom has been reached - What’s next?" The Brent and WTI oil prices approached $50/bbl in the first week of June 2016 and remained flat throughout the month. Consequently, operators immediately began adding rigs targeting their most prolific shale areas e.g. Concho and Energen added seven and six rigs in the Permian Basin during June, respectively. This makes June the first month to show signs of recovery in shale rig count over the last two years, with a 5% monthly increase as shown in Figure 1. With higher oil prices expected going forward, it is clear that the rig count has now reached its bottom. Read more
"Quantifying the impact of shale" by Leslie Wei, Senior Analyst (Published by Oil & Gas Financial Journal, July Edition) Unconventional production is controversial due to environmental concerns, including water safety and earthquakes. Although shale is often regarded in a negative light, it is equally important to consider the positive impact shale has on the domestic and global economy. Oil and gas production in the United States can be broken down into two periods: pre and post shale. The timeline of each period is observable in the figure below, which shows the oil and gas production in the United States split by the source of supply along with the light oil content. Before the “shale era”, US production was decreasing, where the main contributor to production was conventional fields. Read more
"United States now holds more oil reserves than Saudi Arabia" by Per Magnus Nysveen, Senior Partner & Head of Analysis A new independent estimate of world oil reserves has been released by Rystad Energy, showing that the US now holds more recoverable oil reserves than both Saudi Arabia and Russia. For US, more than 50% of remaining oil reserves is unconventional shale oil. Texas alone holds more than 60 billion barrels of shale oil according to this new data. The new reserves data from Rystad Energy also distinguishes between reserves in existing fields, in new projects and potential reserves in recent discoveries and even in yet undiscovered fields. Read more
"Brazil E&P – delays drive short-term slowdown" by Olga Kerimova, Senior Analyst, and Theodora Batoudaki, Analyst (Published by PESGB Newsletter, July Edition) Brazil’s production and investment growth is expected to slow down in the short term as the country’s E&P’s industry continues to be plagued by corruption, political uncertainly and FPSO delays. This article assesses the outlook for the Brazil E&P industry, illustrated by three key drivers: production, exploration success and spending. Read more
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