{"id":48663,"date":"2019-09-26T09:09:02","date_gmt":"2019-09-26T14:09:02","guid":{"rendered":"https:\/\/olduvai.ca\/?p=48663"},"modified":"2019-09-26T09:09:07","modified_gmt":"2019-09-26T14:09:07","slug":"secret-survey-u-s-shale-in-a-state-of-deep-anxiety","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=48663","title":{"rendered":"Secret Survey: U.S. Shale In A State Of ‘Deep Anxiety’"},"content":{"rendered":"\n

Secret Survey: U.S. Shale In A State Of ‘Deep Anxiety’<\/a><\/h3>\n\n\n\n
\"Shale<\/figure>\n\n\n\n

The financial stress sweeping over the U.S. shale sector has led to a sharp contraction in activity.<\/p>\n\n\n\n

Oil and gas activity in Texas and parts of New Mexico declined in the third quarter, with the Dallas Fed<\/a>\u2019s business activity index reporting a reading of -7.4, down from -0.6 in the second quarter. A negative reading signals contraction while a positive reading indicates expansion. Falling deeper into negative territory indicates that shale drillers in the Permian further cut drilling activity over the last three months.<\/p>\n\n\n\n

A slowdown in drilling is an even larger problem for oilfield services companies<\/a>, who provide the equipment, manpower and drilling services that oil companies need. A producer may be able to do more with less, but that \u201cless\u201d falls on the service providers, who have been hit hard. The Dallas Fed said that the business activity in the oilfield services sector fell to -21.8 in the third quarter, down from 6.6 in the second.<\/p>\n\n\n\n

Another reading demonstrated the pain for oilfield services. The Dallas Fed\u2019s \u201cequipment utilization index\u201d plunged to -24 from 3, and the figure for the third quarter was the lowest since the oil market\u2019s nadir in 2016.<\/p>\n\n\n\n

Problematic for shale drillers is that costs still grew, although at a much slower rate. The \u201cinput cost\u201d index stood at 5.6 in the third quarter, an indication of slowing cost increases compared to the 27.1 reading in the second quarter. But the bad news for the industry is that the reading was still in positive territory.<\/p>\n\n\n\n

Employment is also weakening. The employment index fell to -8.0 from -2.5, meaning that the Permian likely saw job losses for the second quarter in a row.<\/p>\n\n\n\n

 \u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Secret Survey: U.S. Shale In A State Of ‘Deep Anxiety’ The financial stress sweeping over the U.S. shale sector has led to a sharp contraction in activity. Oil and gas activity in Texas and parts of New Mexico declined in the third quarter, with the Dallas Fed\u2019s business activity index reporting a reading of -7.4, down […]<\/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":[2,3],"tags":[6010,23083,1875,4380,827],"class_list":["post-48663","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-nick-cunningham","tag-oil-price-com","tag-shale-industry","tag-shale-oil-and-gas","tag-united-states"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48663","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=48663"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48663\/revisions"}],"predecessor-version":[{"id":48665,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48663\/revisions\/48665"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48663"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48663"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48663"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}