Shale -- February 8, 2019

From Rigzone:

• 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

Over at SeekingAlpha also. And at this post.

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

But, rather "very profitable at $45/bbl oil

********************************

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)