Topic: Oil Prices

Southwestern Slashes $1.4B from Budget

Southwestern Energy (NYSE: SWN) has taken an axe to their 2016 capital budget expecting to spend $350 to $400 million in 2016 down from $1,828 in 2015. The company is aiming to spend within cash flow during the year and has only 5% of production headed for 2016. Production will fall within the range of 815 to 835 Bcfe down ~15% from 2015 production. There are no plans for rigs to be running this year with zero wells to be...

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WTI Crude Knocked below $50 and US Land Rigs at 1735

With the WTI oil price trading under $50 / bbl and the crude Brent oil price near $50 / bbl, the rig counts continue to drop confirming our expectations.There has been a -25 drop in rigs with depths of >10K, with the biggest losses occurring in Texas with -18 and Colorado at -2 compared to last week. US Land Rig Count Declines The overall rig count is -25 at 1735 compared to last week with the horizontal rig count down -13 from the...

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27 Rigs down While Oil Drops 12% to $57.81

Why is OPEC cutting production? OPEC will gain relevancy again by pushing prices down below $60/barrel. At this price, several OPEC country members are below their break-even price; however, the OPEC countries likely have enough capital reserves to wait out the bottoming of the price. The two key uncertainties we see are OPEC and global demand.This downturn is much different from 2008. Many economists and traders are pointing towards gains in other areas while the Energy sector is in turmoil....

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Clearing up the Media’s Account of Drilling Activity, US Rig Count -5

To no surprise to an experienced oilfield professional, rig count dropped a few rigs this week. The decline was all oil wells. Everyone is keeping a close eye on the WTI and Brent prices to understand the impact to their business and customers.This week Permian Basin is +2 compared to previous week and +95 compared to last year at this time. Eagle Ford is -3 compared to last week and -20 compared to last year. Click here to see the interactive weekly insights...

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Rig Count Declined This Week to 1842 from 1855

Welcome back from Thanksgiving! It is time to get the last remaining items accomplished by the end of the year! If you were busy eating turkey and shopping, then you may be jolted back into the market's reality today. US onshore rig count down to 1842, -13 from last week Rig counts declined this week to 1842 from 1855 last week for US lower 48 onshore rigs.  The decline is not substantial but Friday's events in the market were a surprise for many...

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Eagle Ford down 17 Rigs Compared to Last Year

Rig count remains an important indicator of oil and gas activity; however, the drops in oil prices reflect a changing dynamic in the industry. With oil prices declining, many expect to see rig count drop significantly by the end of the year. Our view is that there will likely be some leveling off this year but not a significant amount until 2015 budgets are set.This week Permian Basin is -3 compared to last week and +95 compared to last year at...

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Are Rumblings of Rig Count Declines True?

Rig count remains an important indicator of oil and gas activity; however, the drops in oil prices reflect a changing dynamic in the industry. With oil prices declining, many expect to see rig count drop significantly by the end of the year. Our view is that there will likely be some leveling off this year but not a significant amount until 2015 budgets are set.This week Permian Basin is +1 compared to last week and +98 compared to last year...

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Permian Basin Leads with 560 Rigs

Oil prices started declining this week and the "market experts" are proposing doom and gloom scenarios. While $30-60 oil is possible we do not believe that it is likely given today's market conditions. Uncertainties are in every facet of the conversation - global demand, terrorism, OPEC pricing, US energy independence. Each uncertainty is dynamic, fluid, and ever changing.We watch the all aspects of the supply chain across O&G to get a measure of activity and velocity of operator's exploration and...

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