Leaner Shale Likes But Won't Need OPEC Cut to Keep Growing - Bloomberg:
U.S. shale’s response to OPEC’s decision to cut supply and boost prices: We’ll take it, but we don’t need it.
In 2014, the U.S. oil industry’s fate seemed to rest in the hands of OPEC ministers who were flooding the market with cheap oil in a push to obliterate them. Now, the cartel is in full retreat, agreeing to cut output to keep their own economies healthy even as U.S. production continues to surge.
The move came in a week in which oil fell to near $50 a barrel, a price that four years ago would have panicked U.S. drillers. But since then, shale explorers have cut costs, boosted fracking efficiency and made wells longer and more productive. The result: Break evens for a 30 percent profit have been almost halved to just $45 a barrel in the prolific Permian Basin.
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Friday 7 December 2018
Meet the New Permian, It's Double the Size of the Old One - Bloomberg
Meet the New Permian, It's Double the Size of the Old One - Bloomberg:
The U.S.’s fastest growing oil field may have even more to give.
The Permian’s Delaware Basin, the less drilled part of the giant West Texas and New Mexico oil field, holds more than twice the amount of crude as its sister, the Midland Basin, the U.S. Geological Service said Thursday.
The Wolfcamp Shale and Bone Spring rock formations in the Delaware hold an estimated 46.3 billion barrels, the scientists said in their first assessment of the area. In addition, it holds about 281 trillion cubic feet of natural gas, about 18 times the amount in the Midland Basin, which is more heavily drilled and better known.
The U.S.’s fastest growing oil field may have even more to give.
The Permian’s Delaware Basin, the less drilled part of the giant West Texas and New Mexico oil field, holds more than twice the amount of crude as its sister, the Midland Basin, the U.S. Geological Service said Thursday.
The Wolfcamp Shale and Bone Spring rock formations in the Delaware hold an estimated 46.3 billion barrels, the scientists said in their first assessment of the area. In addition, it holds about 281 trillion cubic feet of natural gas, about 18 times the amount in the Midland Basin, which is more heavily drilled and better known.
Crude Climbs as OPEC and Allies Finalize Production Limitations - Bloomberg
Crude Climbs as OPEC and Allies Finalize Production Limitations - Bloomberg:
Oil in New York jumped after OPEC and allied crude exporters surprised traders with a larger-than-expected output reduction. Futures advanced more than 2 percent in New York and London on Friday. The Organization of Petroleum Exporting Countries and aligned nations will collectively curb production by 1.2 million barrels a day, 20 percent more than previously discussed.
“It’s been a volatile October and November, but this is a nice Christmas present into December,” said Chris Kettenmann, chief energy strategist at Macro Risk Advisors LLC. OPEC “stepped up and delivered this year and we should see volatility come in.”
Crude oil has steadily dropped since early October amid concern over growing supplies and the American government’s go-slowly approach by sanctions against Iran. OPEC and allies ended meetings in Vienna on Friday with an agreement for the cartel to reduce output by 800,000 barrels a day and other producers to cut by 400,000 barrels a day. Iran secured an exemption from the deal.
Oil in New York jumped after OPEC and allied crude exporters surprised traders with a larger-than-expected output reduction. Futures advanced more than 2 percent in New York and London on Friday. The Organization of Petroleum Exporting Countries and aligned nations will collectively curb production by 1.2 million barrels a day, 20 percent more than previously discussed.
“It’s been a volatile October and November, but this is a nice Christmas present into December,” said Chris Kettenmann, chief energy strategist at Macro Risk Advisors LLC. OPEC “stepped up and delivered this year and we should see volatility come in.”
Crude oil has steadily dropped since early October amid concern over growing supplies and the American government’s go-slowly approach by sanctions against Iran. OPEC and allies ended meetings in Vienna on Friday with an agreement for the cartel to reduce output by 800,000 barrels a day and other producers to cut by 400,000 barrels a day. Iran secured an exemption from the deal.
OPEC Meeting 2018: Larger-Than-Expected Oil Cut Agreed On - Bloomberg
OPEC Meeting 2018: Larger-Than-Expected Oil Cut Agreed On - Bloomberg:
OPEC finally broke an impasse over production curbs, agreeing on a larger-than-expected cut with allies after two days of fractious negotiations in Vienna.
The cartel and its partners agreed to remove 1.2 million barrels a day from the market, with OPEC itself shouldering 800,000 barrels of the burden. Iran emerged as a winner from the contentious talks, saying it’s secured an exemption from cuts as it suffers the effects of U.S. sanctions.
Crude surged as much as 5.8 percent in London, raising the risk that the deal could anger U.S. President Donald Trump, who had urged the group to keep the taps open and prices low.
OPEC finally broke an impasse over production curbs, agreeing on a larger-than-expected cut with allies after two days of fractious negotiations in Vienna.
The cartel and its partners agreed to remove 1.2 million barrels a day from the market, with OPEC itself shouldering 800,000 barrels of the burden. Iran emerged as a winner from the contentious talks, saying it’s secured an exemption from cuts as it suffers the effects of U.S. sanctions.
Crude surged as much as 5.8 percent in London, raising the risk that the deal could anger U.S. President Donald Trump, who had urged the group to keep the taps open and prices low.
Oil Declines as OPEC Resumes Talks in Hunt for Production Deal - Bloomberg
Oil Declines as OPEC Resumes Talks in Hunt for Production Deal - Bloomberg:
Oil extended losses near $51 a barrel after OPEC entered a second day of talks in an attempt to draw up a deal to cut output.
New York futures slipped as much as 1.7 percent, falling for a third session. Saudi Energy Minister Khalid Al-Falih said Thursday in Vienna that he isn’t confident of an agreement when the Organization of Petroleum Exporting Countries meets again with its allies on Friday. OPEC is discussing a proposal that would see the group reduce output by 650,000 barrels a day, with a further 350,000 barrel a day contribution from its allies, including Russia, delegates said.
Oil has plunged more than 30 percent from a four-year high in October as concern over oversupply was fueled by waivers given for some buyers of Iranian oil and growing crude inventories and production in the U.S. While Saudi Arabia’s energy minister said Wednesday that output cuts of 1 million barrels a day were adequate to balance the market, there’s still uncertainty over whether the amount would be enough to shift current bearish market sentiment and prop up prices.
Oil extended losses near $51 a barrel after OPEC entered a second day of talks in an attempt to draw up a deal to cut output.
New York futures slipped as much as 1.7 percent, falling for a third session. Saudi Energy Minister Khalid Al-Falih said Thursday in Vienna that he isn’t confident of an agreement when the Organization of Petroleum Exporting Countries meets again with its allies on Friday. OPEC is discussing a proposal that would see the group reduce output by 650,000 barrels a day, with a further 350,000 barrel a day contribution from its allies, including Russia, delegates said.
Oil has plunged more than 30 percent from a four-year high in October as concern over oversupply was fueled by waivers given for some buyers of Iranian oil and growing crude inventories and production in the U.S. While Saudi Arabia’s energy minister said Wednesday that output cuts of 1 million barrels a day were adequate to balance the market, there’s still uncertainty over whether the amount would be enough to shift current bearish market sentiment and prop up prices.
Riyadh to host GCC Summit Sunday | ZAWYA MENA Edition
Riyadh to host GCC Summit Sunday | ZAWYA MENA Edition:
The leaders of Gulf Cooperation Council (GCC) will hold the 39th session of the GCC Supreme Council in Riyadh on Sunday. Custodian of the Two Holy Mosques King Salman will chair the summit, according to GCC Secretary General Abdullatif Al-Zayani.
Al-Zayani expressed his pride and gratitude to King Salman for entrusting him to extend the invitation to the GCC leaders to attend the summit. “The GCC leaders will discuss a number of important issues pertaining to the GCC joint action, and the achievements so far made in the framework of the GCC integration and cooperation in political, defense, economic and legal fields. They will examine the reports and recommendations submitted by relevant specialized ministerial committees and the General Secretariat,” he said.
The GCC chief said that the session would also review the latest regional and international political developments and security situations in the region, the Saudi Press Agency reported.
The leaders of Gulf Cooperation Council (GCC) will hold the 39th session of the GCC Supreme Council in Riyadh on Sunday. Custodian of the Two Holy Mosques King Salman will chair the summit, according to GCC Secretary General Abdullatif Al-Zayani.
Al-Zayani expressed his pride and gratitude to King Salman for entrusting him to extend the invitation to the GCC leaders to attend the summit. “The GCC leaders will discuss a number of important issues pertaining to the GCC joint action, and the achievements so far made in the framework of the GCC integration and cooperation in political, defense, economic and legal fields. They will examine the reports and recommendations submitted by relevant specialized ministerial committees and the General Secretariat,” he said.
The GCC chief said that the session would also review the latest regional and international political developments and security situations in the region, the Saudi Press Agency reported.
Oil edges higher after #Russia indicates larger output cut | Reuters
Oil edges higher after Russia indicates larger output cut | Reuters:
Brent oil futures edged higher on Friday after Russia seemed likely to contribute a bigger output cut to an OPEC and non-OPEC deal, but Saudi Arabia voiced pessimism on whether an agreement could be reached as Iran insisted on an exemption.
International Brent crude oil futures LCOc1 fell below $60 per barrel in early trade, but firmed to $60.17 a barrel by 1041 GMT, up 11 cents from the close. U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 18 cents at $51.3 per barrel.
The slight recovery came after crude slumped by almost 3 percent the previous day, with the Organization of the Petroleum Exporting Countries (OPEC) ending a meeting at its headquarters in Vienna, Austria, on Thursday without announcing a decision to cut crude supply.
Brent oil futures edged higher on Friday after Russia seemed likely to contribute a bigger output cut to an OPEC and non-OPEC deal, but Saudi Arabia voiced pessimism on whether an agreement could be reached as Iran insisted on an exemption.
International Brent crude oil futures LCOc1 fell below $60 per barrel in early trade, but firmed to $60.17 a barrel by 1041 GMT, up 11 cents from the close. U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 18 cents at $51.3 per barrel.
The slight recovery came after crude slumped by almost 3 percent the previous day, with the Organization of the Petroleum Exporting Countries (OPEC) ending a meeting at its headquarters in Vienna, Austria, on Thursday without announcing a decision to cut crude supply.
#Dubai’s developers looking elsewhere for funds
Dubai’s developers looking elsewhere for funds:
Off-plan sales and launches not going well? Don’t worry, developers in Dubai are actively working on their Plan B.
First, use whatever funds are available to them to get their current projects up to and past the 50 per cent construction mark. The new sentiment among most developers is that just touching the 20 per cent level will not cut much ice with potential buyers.
The Dubai Land Department (DLD) requirement is that developers need to have fully paid up the land and reached 20 per cent, to formally launch sales. But these days “the whole requirement of buyers have changed — they want to buy when the project is visible,” said Ali Tumbi, CEO of Aqua Properties, which started as a brokerage firm and now has a development portfolio as well.
Off-plan sales and launches not going well? Don’t worry, developers in Dubai are actively working on their Plan B.
First, use whatever funds are available to them to get their current projects up to and past the 50 per cent construction mark. The new sentiment among most developers is that just touching the 20 per cent level will not cut much ice with potential buyers.
The Dubai Land Department (DLD) requirement is that developers need to have fully paid up the land and reached 20 per cent, to formally launch sales. But these days “the whole requirement of buyers have changed — they want to buy when the project is visible,” said Ali Tumbi, CEO of Aqua Properties, which started as a brokerage firm and now has a development portfolio as well.
Saudi economy has proved resilient — but now comes the challenge | Arab News
Saudi economy has proved resilient — but now comes the challenge | Arab News:
As the decision makers in Vienna got down to the nitty gritty on Thursday, the economic policymakers back home were looking through the range of oil price variables to see how the OPEC deliberations will effect their budget calculations for 2019.
Though it is still too early to say where the oil price will settle after Vienna, especially after the recent volatility in global crude prices amid a wave of geopolitical forces pulling it this way and that, the economic background is relatively benign — or at least less unpredictable than it has been for several years.
The risk is that those same mercurial geopolitics can throw off course even the best laid plans, and that Saudi Arabia — the biggest of the regional oil-exporting economies — finds itself contending with more variables than policymakers would ideally like.
As the decision makers in Vienna got down to the nitty gritty on Thursday, the economic policymakers back home were looking through the range of oil price variables to see how the OPEC deliberations will effect their budget calculations for 2019.
Though it is still too early to say where the oil price will settle after Vienna, especially after the recent volatility in global crude prices amid a wave of geopolitical forces pulling it this way and that, the economic background is relatively benign — or at least less unpredictable than it has been for several years.
The risk is that those same mercurial geopolitics can throw off course even the best laid plans, and that Saudi Arabia — the biggest of the regional oil-exporting economies — finds itself contending with more variables than policymakers would ideally like.