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When oilprices were high and production was relentlessly climbing, energy related junk bonds looked highly profitable. The situation will compound itself if oilprices stay low. Without the ability to finance drilling, smaller or more indebted oil companies may not have a future.
The fallout of the collapse in oilprices has a lot of side effects apart from the decline of rig counts and oil flows. But the bust is leaving towns like Williston, NorthDakota stretched extremely thin as it tries to deal with the aftermath. By Nick Cunningham of Oilprice.com.
Oil production capacity is surging in the United States and several other countries at such a fast pace that global oil output capacity could grow by nearly 20% from the current 93 million barrels per day to 110.6 Such an increase in capacity could prompt a plunge or even a collapse in oilprices, he suggests.
United States M&A activity for upstream oil and gas deals set records in 2011 for both deal values and deal counts, according to PLS, Inc., a provider of information, marketing and advisory services for the oil and gas industry. billion in October, creating North America’s largest midstream company.
Argentina offers one of the few places on earth where oil companies are not suffering from the full force of the collapse in prices. Argentina regulates oilprices, a policy originally intended to insulate the public from the whims of the market, protecting people from triple-digit crude prices.
The financial pages of Canadian newspapers have been full of headlines lately announcing the potential of two large shale oil fields in the Northwest Territories said to contain enough oil to rival the Bakken Formation of NorthDakota and Montana. enthused the Financial Post. “NEB WTI crude closed at $59.13
Oilprices have rebounded strongly since March. The benchmark WTI prices soared by more than 36 percent in two months, and Brent has jumped by more than 25 percent. In the Bakken, oil production actually increased by 1 percent in the month of March, a surprise development reported by the NorthDakotaIndustrial Commission.
It is estimated that approximately 180,000 bpd of Canadian crude oil is already traveling by rail, and industry investments in rail are increasing. The dominant drivers of oil sands development are more global than any single infrastructure project. million bpd. Rail Direct to the Gulf Coast Scenario.
The EIA noted that concerns about decreased demand because of increasing COVID-19 cases have recently driven crude oilprices down, offsetting some initial price increases due to larger inventory draws. As a result, EIA’s crude oilprice forecast remains mostly unchanged from the July STEO.
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