{"id":18141,"date":"2016-02-23T12:29:20","date_gmt":"2016-02-23T17:29:20","guid":{"rendered":"http:\/\/olduvai.ca\/?p=18141"},"modified":"2016-02-23T12:29:20","modified_gmt":"2016-02-23T17:29:20","slug":"shale-set-to-decline-substantially-this-year","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=18141","title":{"rendered":"Shale Set To Decline Substantially This Year"},"content":{"rendered":"<h3><a href=\"http:\/\/oilprice.com\/Energy\/Oil-Prices\/Shale-Set-To-Decline-Substantially-This-Year.html\" target=\"_blank\">Shale Set To Decline Substantially This Year<\/a><\/h3>\n<div class=\"share-buttons\">U.S. shale has weathered the oil crash better than many expected, but the stubborn persistence of low prices through 2016 could amount to the \u201cstraw breaking the camel\u2019s back\u201d for shale production.<\/div>\n<div class=\"column75-25 clear\">\n<div class=\"column75-25_1\">\n<div id=\"article-content\" class=\"wysiwyg clear\">\n<p>The International Energy Agency\u00a0<a href=\"http:\/\/www.iea.org\/newsroomandevents\/pressreleases\/2016\/february\/global-oil-supply-growth-plunging-with-us-taking-biggest-hit-for-now.html\">released<\/a>\u00a0its Medium Term Oil Market Report on February 22 at the IHS CERA Week conference in Houston, an annual confab for the elite of the oil industry. In its report, the IEA sees U.S. shale finally capitulating this year, falling by 600,000 barrels per day, plus another contraction of 200,000 barrels per day in 2017. By then, oil prices should rebound as supply and demand converge.<\/p>\n<p>But, it won\u2019t be the end of U.S. shale, the IEA says. \u201cAnybody who believes that we have seen the last of\u00a0rising LTO production in the United States should think again; by the end of our forecast in 2021,<br \/>\ntotal U.S. liquids production will have increased by a net 1.3 mb\/d compared to 2015,\u201d the IEA wrote decisively. LTO refers to \u201clight, tight, oil,\u201d or light oil from shale.<\/p>\n<p><a href=\"http:\/\/oilprice.com\/Energy\/Crude-Oil\/Eagle-Ford-Struggles-But-Its-Still-The-Sweet-Spot.html\"><strong>Related:\u00a0Eagle Ford Struggles, But It\u2019s Still The Sweet Spot<\/strong><\/a><\/p>\n<p>The near-term prospects don\u2019t look so good, however. The Paris-based energy agency believes that crude oil markets will remain oversupplied throughout 2016, with the glut expected to be around 1.1 million barrels per day (mb\/d). The supply overhang will disappear in 2017, but the extraordinary levels of oil currently siting in storage will delay a rise in oil prices.<\/p>\n<p>The pain will be felt far and wide. Shale companies are slashing spending, laying off workers, and forgoing drilling plans in an effort to avoid bankruptcy. Collectively, OPEC has seen oil export revenues fall from a peak of USD$1.2 trillion in 2012 down to USD$500 billion in 2015. Revenues will further decline to just USD$320 billion this year.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Shale Set To Decline Substantially This Year U.S. shale has weathered the oil crash better than many expected, but the stubborn persistence of low prices through 2016 could amount to the \u201cstraw breaking the camel\u2019s back\u201d for shale production. The International Energy Agency\u00a0released\u00a0its Medium Term Oil Market Report on February 22 at the IHS CERA [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[416,433,10134,2603,2736,5332,600,723,846],"class_list":["post-18141","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-iea","tag-international-energy-agency","tag-james-stafford","tag-light-tight-oil","tag-oil-market-report","tag-oilprice-com","tag-opec","tag-shale-oil","tag-us-shale-oil"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18141","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18141"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18141\/revisions"}],"predecessor-version":[{"id":18142,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18141\/revisions\/18142"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}