CAPEX Changes In 2Q15 May Surprise You -- RBN Energy -- August 21, 2015

The Dow could lose close to a 1,000 points in less than two weeks. The Fed admits it's out of ammo. Any bets that Janet Yellen will raise interest rates any time soon? 

EIA's "energy cookie":

Several states that produce large amounts of fossil fuels rely heavily on severance tax revenue—taxes based on the volume and/or value of oil, natural gas, coal, and other natural resources. On average, severance taxes accounted for less than 2% of state tax collections in 2014, but in three states—Alaska, North Dakota, and Wyoming—severance taxes provided a much larger share of total state tax revenue in that year. --- EIA

Active rigs:

	8/21/2015	08/21/2014	08/21/2013	08/21/2012	08/21/2011
Active Rigs	76	193	185	197	193

RBN Energy: CAPEX changes in 2Q15.  (Archived)

With crude oil prices just over $40/bbl you might think producers would be reducing capex and cutting their 2015 production estimates.  But not so.  RBN’s analysis of second quarter guidance in 2015 indicates that 31 E&Ps as a group kept their capex outlook at about the same level as they indicated in Q1.  And as a group they still expect oil and gas production in 2015 to increase versus last year. But there were significant differences between the peer groups we examined. The Small/Mid-Size Oil-Weighted E&Ps upped 2015 investment by $730 million versus Q1 and now expect 2015 production to be up 16% over last year versus the 13% increase expected last quarter.  The Large Oil-Weighted E&Ps slashed capex by another $630 million, yet production is still expected to rise, in this case by 4% versus a 3% growth expectation last quarter.  In contrast, capital spending and production guidance were little changed among the gas-weighted peer groups. Today we provide an update to our Q1 analysis of capital spending and production trends.

Bloomberg asks the question, how long can Saudi Arabia last with oil prices this low. The article was not particularly enlightening; a pretty weak article for Bloomberg, but linking it here for the archives. I think the wrong question is being asked. Saudi Arabia can easily last for years with oil prices this low. The better question is whether OPEC is now dead except in name only?

For the archives. I don't know who sent me this or why they sent it to me, but it appears to be an interesting article on Minneapolis and a new incinerator. I never know where to file these links but I will simply link it here for now, for the archives.