{"id":4669,"date":"2015-01-20T07:03:36","date_gmt":"2015-01-20T12:03:36","guid":{"rendered":"http:\/\/olduvai.ca\/?p=4669"},"modified":"2015-01-20T07:03:36","modified_gmt":"2015-01-20T12:03:36","slug":"oil-price-collapse-hurting-some-more-than-others","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=4669","title":{"rendered":"Oil Price Collapse Hurting Some More Than Others"},"content":{"rendered":"<h3><a href=\"http:\/\/oilprice.com\/Energy\/Oil-Prices\/Oil-Price-Collapse-Hurting-Some-More-Than-Others.html\" target=\"_blank\">Oil Price Collapse Hurting Some More Than Others<\/a><\/h3>\n<p>U.S. oil and gas rig counts dropped to their\u00a0<a href=\"http:\/\/www.ogj.com\/articles\/2015\/01\/bhi-us-rig-count-plunges-74-units-hits-lowest-total-since-october-2010.html\">lowest level<\/a>\u00a0in over four years, falling by an additional 74 units for the week ending on January 16. The lower count provides fresh evidence that low oil prices are forcing drillers to pare back operations and slash spending.<\/p>\n<p>While that may soon begin to cut into actual production figures, a new Wood Mackenzie report finds a lot of nuance in the oil patch, painting a complex picture of what to expect in 2015. The report\u00a0<a href=\"http:\/\/www.worldoil.com\/Operators-could-see-up-to-40-in-cost-reductions-Wood-Mackenzie-says.html\">identifies several trends<\/a>\u00a0beyond the simple narrative that low prices will force a cutback in drilling.<\/p>\n<p>First, Wood Mackenzie estimates that at $40 per barrel, many producing wells<a href=\"http:\/\/www.woodmac.com\/public\/views\/low-oil-prices-halt-production\">could be shut in<\/a>. In fact, about 1.5 million barrels per day of production would be \u201ccash negative\u201d \u2013 meaning it wouldn\u2019t even make sense to continue pumping at the most marginal wells, which tend to have extremely low-output. These \u201cstripper wells,\u201d which only produce 15 barrels of oil per day or less, have high costs given their level of production.<\/p>\n<p><a href=\"http:\/\/oilprice.com\/Energy\/Crude-Oil\/Oil-Industry-Withdraws-From-High-Cost-Areas.html\"><strong>Related:\u00a0Oil Industry Withdraws From High Cost Areas<\/strong><\/a><\/p>\n<p>Wells producing such a tiny flow of oil may seem like a nonissue, but with<a href=\"https:\/\/nswa.us\/custom\/showpage.php?id=25\">hundreds of thousands of them<\/a>\u00a0dotting the country, they collectively account for about one-tenth of the nation\u2019s production. As these wells become unprofitable, production should start declining.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oil Price Collapse Hurting Some More Than Others U.S. oil and gas rig counts dropped to their\u00a0lowest level\u00a0in over four years, falling by an additional 74 units for the week ending on January 16. The lower count provides fresh evidence that low oil prices are forcing drillers to pare back operations and slash spending. While [&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":[2660,1930,1019,1775,1644,834],"class_list":["post-4669","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-layoffs","tag-marginal-oil-production","tag-oil-drilling","tag-oil-price-collapse","tag-rig-count","tag-us"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4669","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=4669"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4669\/revisions"}],"predecessor-version":[{"id":4670,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/4669\/revisions\/4670"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4669"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4669"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4669"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}