...Permian output from West Texas (click here) and eastern New Mexico was set to rise by 30,000 bpd to a record high over 2 million bpd, its third monthly increase in a row, according to EIA data going back to 2007.
Total natural gas production, meanwhile, was forecast to decline for a seventh consecutive month in November to 46.0 billion cubic feet per day (fyi definiton bcfd), the lowest level since July 2015, the EIA said.
That would be down almost 0.2 bcfd from October, making it the smallest monthly decline since July, it noted.
The biggest regional decline was expected to be in the Eagle Ford, down almost 0.2 bcfd from October to 5.6 bcfd in November, the lowest level of output in the basin since November 2013, the EIA said.
Output in the Marcellus formation, the biggest U.S. shale gas field, meanwhile, was expected to rise by almost 0.1 bcfd from October to 18.2 bcfd in November. That would be its first increase since July....
The bankruptcies have some effect on this reduction. I don't mind at all there is a drop in production. The energy market is moving away from fossil fuels as it should. Where the US energy market is not moving away from fossil fuels, it needs to. Alternative energy is the future and we need to invest now.
March 9, 2016
The bankruptcies have some effect on this reduction. I don't mind at all there is a drop in production. The energy market is moving away from fossil fuels as it should. Where the US energy market is not moving away from fossil fuels, it needs to. Alternative energy is the future and we need to invest now.
March 9, 2016
The pace of oil patch bankruptcies is picking up. (click here) According to a new count from Houston law firm Haynes & Boone, April saw 11 bankruptcy filings, the most of any month in the past two years. The headline failures that month were Ultra Petroleum UPL +%, which buckled under $3.9 billion in debt, and Energy XXI, which carried debt of $2.9 billion.
All told, 69 oil and gas producers with $34.3 billion in cumulative secured and unsecured debt have gone under. Since share prices peaked in 2014, the oil bust has wiped out about $1 trillion in equity, with the Dow Jones U.S. Oil & Gas Index off 40%.
There’s more to come. “Despite the modest recovery in energy prices, all indications suggest many more producer bankruptcy filings will occur during 2016,” writes Haynes & Boone. According to Deloitte , about a third of global oil and gas companies, or about 175 of them, are at risk of insolvency. Bernstein Research estimates that by 2019 we’ll see more than $70 billion in defaults amid more than $400 billion in high-yield energy debt — that would indicate that we’re only halfway through the bankruptcies....
