![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() by Daniel J. Graeber New York (UPI) Dec 8, 2016
Some oil producers in the United States are expected to see gains as oil prices recover on the back of OPEC's output agreement, Platts reports. The Organization of Petroleum Exporting Countries last week agreed to limit oil production to around 32.5 million barrels per day starting in January. A crude oil market favoring the supply side responded with gains in prices for the Brent and West Texas Intermediate benchmarks. Crude oil prices had already been on the road to recovery, holding in the mid $40 per barrel range in the third quarter as some demand factors started to factor into the market. Based on a low-end estimate of $50 per barrel for WTI, S&P Global Platts said in an emailed report that some U.S. oil producers are expected to reap the rewards of the OPEC-fueled rally in oil prices. Taylor Cavey, an analyst for Platts, said producers in the United States have learned to become resilient to the low-price area by cutting costs and making their operations more efficient. "Producers will carry forward these newly acquired skill sets ... as oil prices are expected to improve and allow for a meaningful supply response," Cavey said. With WTI even at its low end, Platts said it's "clear" that some U.S. shale oil producers are finding an incentive to increase their production as oil prices look for a new floor near the $50 per barrel range. The Permian shale basin in Texas may be the greatest benefactor from improved prices. Total oil production from Permian this year should average around 2 million barrels per day. If WTI holds around $50 per barrel at least, Platts estimates production could growth by at least 75,000 bpd next year. Elsewhere, the Denver-Juelesburg shale basin in Colorado can expect some modest improvements, though other shale areas won't be so lucky, Platts found. A report this week from the U.S. Energy Information Administration said U.S. oil producers have been more resilient than expected during the downturn. Total U.S. oil production this year is expected at 8.9 million barrels per day, about 5 percent less than last year. EIA expects production next year at 8.8 million bpd, which is more than it forecast in its short-term market from the previous month. EIA forecasts an average price for WTI next year at $51 per barrel.
![]() ![]()
Related Links All About Oil and Gas News at OilGasDaily.com
|
|
The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us. |