US Shale Set For 16% Growth In 2019 -- That's This Year -- May 22, 2019

It may be interesting to take a look at this research again:

• why the price of oil is likely to remain range-bound for the foreseeable future (five years)

I say that because of this Rigzone article today: US shale set for 16% oil growth in 2019.

I find that incredible. There are not many industries in which a product grows by 16% year-over-year, and this is in an industry in which the product is over-supplied.

I simply find this incredible. It speaks volumes.

One thing that jumps out at me: breakeven costs. Oil companies are not drilling wells to lose money. If shale oil production is going to increase by 16% year-over-year it tells me that someone is making money on shale.

By the way, corroboration for that last statement -- making money -- note the dividend increases by a number of shale operators.

From Rystad/Rigzone:

As if they’re not already on a roll, U.S. shale operators are on track to increase oil production by 16 percent in 2019, according to analysis by energy research firm Rystad Energy.

Rystad said the growth in U.S. onshore production from first quarter 2019 through fourth quarter 2019 could equate to 1.1 to 1.2 million barrels per day (MMbpd), or 16 percent, for the full year.

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Small Operator Expands Texas Storage Terminal

From Rigzone. Data points --

• Bluewing Midstream LLC
• South Texas bulk liquids terminal at Port of Brownsville
• Phase II expansion: ground breaking
• the terminal currently has storage capacity for 800,000 bbls of liquids (gasoline, diesel, jet fuel, other petroleum products)
• expansion will add 300,000 bbls of capacity
• should be completed by end of year (2019)

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Monoethylene Glycol Plant Proposed

Shell: $1.2 Billion

Ascension Parish, LA

Shell could decide to proceed with the MEG project next year. If that happens:

• 23 direct jobs
• average annual salary of $100,000 plus benefits
• 112 indirect jobs
• 1,000 construction jobs

The MEG plant would be sited at Shell's Geismar facility in Ascension Parish, LA. That plant:

• Shell added a 423,000-tonne per year alpha olefins unit at Geismar in 2018
• brings total manufacturing capacity to 1.3 million tonnes per annum across four units
• also manufactures detergent alcohols, ethylene glycol, and ethylene-based industrial chemicals