Economics ///

Supermajors’ first quarter earnings were bad, and will likely get worse

Exxon Mobil reported its first loss in over 30 years, while Shell cut its dividend for the first time since the Second World War. And that was only the result of the initial spread of the coronavirus.

Daily Brief podcast: Key industry trends for the coming week

A look at the trends for the coming week, including how production cuts are affecting near-term supply worldwide, where we can anticipate demand growth to start taking place first, and just what it will take from an operational standpoint to restart production.

Argentina’s plan to protect drilling by setting oil prices gains momentum

Energy markets are rarely left to their own devices in Argentina, to the frustration of many in the industry, and past governments have used controls to shield the local energy business from global price swings.

U.S. drilling rig count lowest since 1975 as shale boom fades

“This is an unprecedented downturn,” EOG Resources Inc. CEO Bill Thomas said during a conference call with analysts. “U.S. oil production is in severe decline and it could take years for domestic production to turn around. We believe that the historic and prolific oil-production growth by U.S. shale may have been forever altered.”

Crashing oil demand drives a 17 MMbpd global output cut in Q2

Consulting firm IHS Markit expects oil demand in the second quarter of 2020 to be 22 MMbpd less than a year ago. This collapse, combined with low prices, storage constraints and government ordered cuts, are driving an extraordinary level of liquids production cuts and shut-ins around the world.

Daily Brief podcast: Near-term M&A opportunities and challenges in oil & gas

Arindam Das, Head of Consulting at Westwood Global Energy Group shares his insights on the near-term outlook for M&A activity in the oil and gas sector.

Sen. Warren, API stand against Trump’s proposed aid for oil companies

The Trump administration shouldn’t create a special relief program to bolster oil and gas producers while ignoring companies with “legitimate needs” that have been harmed by the coronavirus, Senator Elizabeth Warren argued Thursday.

Maersk Drilling further reduces headcount and financial guidance as projects dwindle

The revised guidance reflects expected adjustments to the existing contracts based on current customer dialogues, no additional contracts with financial impact in 2020, and COVID-19 related costs.

Argentina considers $45/bbl floor price for domestic crude

The administration of President Alberto Fernandez has circulated a proposal to set $45 as the per-barrel mandate in a bid to keep the domestic drilling business alive and sustain development of the vast Vaca Muerta shale formation during the demand-killing coronavirus pandemic.

Daily Brief podcast: Layoffs, regulation changes and production plans in Texas shale

Kurt and Cameron discuss more service company layoffs in Texas, the final outcome on prorationing, and what is likely to happen in shale plays as the crude demand decline levels off.

World Oil Analysis: Texas RRC’s task force measures are underwhelming, say advisors

The Railroad Commission of Texas held yet another meeting on Tuesday, and the results, while predictable, are mostly ineffective, as a whole.

Undercutting rivals helps Saudis grow share in key oil markets

State oil producer Saudi Aramco slashed its official selling prices for April crude sales to some of the lowest levels in decades, undercutting rivals. For cargoes loading for Asia in May, Aramco cut pricing even further, and it’s expected to widen discounts to that region for June.

Petrostates forced to consider life without oil revenues as prices stay low

From Nigeria to Venezuela and Iraq, petrostates are facing the same challenge -- maintaining their economies while their prized commodity is worth a much less than it was, and where private companies often still want their cut.

Oxy cuts capex, takes $1.4 billion writedown on oil price collapse

Occidental Petroleum took a $1.4 billion writedown related to an investment in a pipeline affiliate, cut capital spending and withdrew its guidance for the year after a historic collapse in oil prices.

Oil regulator officially closes the door on production cuts in Texas

The Railroad Commission of Texas (RRC) on Tuesday, May 5, voted against limiting oil production in the state, closing the book on a closely-watched proposal. The plan had been proposed to ensure the economic future of smaller operators, as they face unprecedented volatility in commodity prices.

Oil at $30 may be enough to revive shale activity, say drillers

A pair of prominent shale producers said all they need is oil around $30 a barrel to consider bringing back curtailed crude output and fracing new wells.

Challenge lies in choosing which wells to shut in amid the oil downturn

Shutting an oil well in 2020 is relatively easy, and can even be done with a few taps on an iPhone in some cases. Figuring out which to shut, and for how long, is the hard part.

Texas drillers cut output on their own as state quota plan fails

On the same day OPEC-style oil quotas in Texas were pronounced dead on arrival, shale drillers disclosed more supply cuts in response to the crude market collapse.

Sitton says proposal to limit oil output in Texas “is now dead”

A Texas regulator who had proposed mandating oil production cuts is now calling those efforts “dead” a day before the state was set to vote on the measure.

Oil demand is beginning a slow, and fragile, recovery worldwide

From the streets of San Antonio to Barcelona and Beijing, traffic data, sales at fuel stations, and pipeline flows all suggest that the slump in oil demand probably bottomed out around the middle of April, and has now started a modest -- and very tentative -- recovery.