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Saturday, 5 August 2017

The Shale Boom Slows Down While Enthusiasm for Permian Fades - Bloomberg

The Shale Boom Slows Down While Enthusiasm for Permian Fades - Bloomberg:

"Oil explorers reduced rigs drilling in U.S. oilfields this week, fueling optimism that a shale slowdown and OPEC production cuts will be enough to deflate a glut and strengthen crude prices. Working rigs targeting crude fell by 1, bringing the total to 765, according to Baker Hughes data reported Friday. Producers ended 23 straight weeks of additions with a pullback at the end of June, breaking the longest stretch of continuous growth in three decades. Even so, more than twice as many rigs are drilling for oil now than in May 2016, when the count hit a low point of 316. "It echoes what we’ve been expecting and what explorers and producers have been saying," Andrew Cosgrove, senior analyst for energy and mining equity at Bloomberg Intelligence, said by telephone. "They’re dialing back some of their expectations for output in the second half of the year.""



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