Amusingly, Saudi Aramco made repeated references to COVID-19 in its results but was a little more coy in mentioning its starring role in the short, nasty and brutish price war it launched in March against its frenemy Russia.
Net income fell to $US16.6 billion from $US22.2 billion at the same time last year – and that was on a realised crude oil price of $US51.80 a barrel.Wells idled in North Dakota, dated April 16, 2020:
State Mineral Resources Director Lynn Helms said Tuesday that companies have shut 4,600 wells since the start of March. The idled wells account of about 260,000 barrels per day of oil, The Bismarck Tribune reported.Director's Cut, March, 2020, data posted today.
The Permian:
I watched the video. (At 2x speed, only way to consume video content, if you value your time.)
ReplyDeleteLynn says we could get to single digits in rigs and that there is only a single frac crew running now! Half of the meager rigs running now are on the reservation, which he says is a sign of collapse into the sweetest part of the core.
It will be fascinating to watch. I'm interested in watching three things with regard to the geographic Bakken:
Delete1) to what extent new drilling matters, in the short term, defined as the next six months AND at current WTI prices, from the mid-$20 range to the mid-$30 range;
2) what strategies the publicly traded operators use to stay afloat (survive); and,
3) whether we will see a new geo-political event that changes things once again.
This is absolutely fascinating.
I've spent much of the weekend updating well production, and the wells in the Bakken are simply incredible. North Dakota has been through two huge oil "busts" in the past, both times it appeared the Basin was dead, forever. What we know about the Basin now pretty much excludes the possibility of US shale disappearing forever.
The second thing: a lot of oil is being stored underground in completed but inactive wells; and, in DUCs, many of which have been completed and are in various states of production.