- Apache will do more with less
- will cut CAPEX for 2019 from $3 billion to $2.4 billion
- did not cut production guidance: 410K to 440K boepd
- expects strong 4Q18 to 4Q19 production increases of 6 to 10 percent as a company; 12 to 16 percent in the US and 5% from the Permian
- targeting a "cash flow neutral" plan
- assumption: WTI at $53/oil -- 2019 average
Rystad, re-posting: yesterday it was noted that Rystad felt Permian shale operators could be profitable on $45 oil. I missed an important word in that post. See if you can find it:
“Our conclusion is that the average well completed during 2017 and 2018, which mirrors the most likely production profile and costs, appears very profitable even at local oil prices of $45/bbl,” said Per Magnus Nysveen, Rystad Energy senior partner.Yes, the key word that I glossed over: very.
Succinctly: the Permian appears very profitable even at local oil prices of $45/bbl.
Rystad did not use these words:
- break-even at $45
- possibly profitable at $45
- profitable at $45
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Beating A Dead Horse
This will be the third post / link regarding the effect a ban on Venezuela oil will have on the US. To re-cap (links later when I'm in the mood):
- I posted first: it would have no effect
- then RBN Energy: came to the same conclusion
- now, oilprice: same conclusion (see more here)
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