{"id":24809,"date":"2017-08-22T14:32:20","date_gmt":"2017-08-22T19:32:20","guid":{"rendered":"http:\/\/olduvai.ca\/?p=24809"},"modified":"2017-08-22T14:32:21","modified_gmt":"2017-08-22T19:32:21","slug":"the-latest-red-flag-for-u-s-shale","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=24809","title":{"rendered":"The Latest Red Flag For U.S. Shale"},"content":{"rendered":"

The Latest Red Flag For U.S. Shale<\/a>\"Permian\"<\/picture><\/h3>\n
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The U.S. shale industry has had a rough few weeks, with a growing number of reports suggesting that the industry is facing much more financial trouble than many analysts had expected. Now, a new report adds further evidence to the notion that shale is losing its luster in a $50 per barrel market, with producers forgoing shale in favor of older wells.<\/p>\n

U.S. shale was thought to be the most competitive source of oil out there, and indeed the industry appears to be ramping up production at today\u2019s prices. Shale had adapted to a $50 per barrel market, producers had streamlined operations to make them almost resemble an assembly line, and in a volatile and unpredictable market, the short-cycle nature of shale drilling made it one of the least risky options for drillers.<\/p>\n

But in just a few weeks\u2019 time, investors are starting to ask major questions<\/a> about the viability of shale drilling at such a large scale.<\/p>\n

A couple of notable things have occurred in the past month or so. Pioneer Natural Resources, a top Permian producer, raised concerns when it told investors that its Permian shale wells were coming up with a higher natural gas-to-oil ratio than expected<\/a>, a potentially worrying sign. The company also reported that it had trouble with some of its wells, forcing it to delay some completions.<\/p>\n

Separately, Goldman Sachs reported that top investors are souring on U.S. shale E&Ps, with poor performances leading investors to search for ways to \u201creallocate capital\u201d elsewhere in the energy space<\/a>. That is big red flag for the shale industry, which is still struggling to consistently post profits despite the highly-touted cost reductions over the past few years.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Latest Red Flag For U.S. Shale The U.S. shale industry has had a rough few weeks, with a growing number of reports suggesting that the industry is facing much more financial trouble than many analysts had expected. Now, a new report adds further evidence to the notion that shale is losing its luster in […]<\/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":[6010,5332,723,7893,846],"class_list":["post-24809","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-nick-cunningham","tag-oilprice-com","tag-shale-oil","tag-us-shale-industry","tag-us-shale-oil"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24809","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=24809"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24809\/revisions"}],"predecessor-version":[{"id":24810,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24809\/revisions\/24810"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24809"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}