News Oil 

U.S. oil output growth slows: just how much is anyone’s guess

“As a result, most industry executives and consultants said they expect slower U.S. shale growth” writes Midwest Communications Inc for 95kqds.com. Output gains by larger oil companies and a lag effect from smaller companies’ reductions have wildly varying 2020 output forecasts.Top Permian producer Pioneer also recently increased its forecast for this year’s oil output and aims for a mid-teens percentage gain over several years.U.S. oil production next year will rise 1 million bpd, U.S. Energy Information Administration predicted, with shale accounting for most of that. Source: 95kqds.com

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News Oil 

USA Posts First Month in 70 Years as Net Petroleum Exporter…

“(Bloomberg) — The U.S. solidified its status as an energy producer by posting the first full month as a net exporter of crude and petroleum products since government records began in 1949” writes Stephen Cunningham for yahoo.com. While the net exports show decreasing reliance on imports, the U.S. still continues to buy heavy crude oil from other nations to meet the needs of its refineries.Soaring output from shale deposits led by the Permian Basin of West Texas and New Mexico has been in main driver of the transition — but…

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News Oil 

US shale production forecasts would require an enormous capex outlay that isn’t coming

“The long-term oil outlook depends on shale production and CIBC argues today that the assumptions underpinning long-term supply growth are way off” reports forexlive.com. They note that all signs in oil right now are towards decelerating capital deployment as companies are urged by shareholders to return capital, rather than growing production. Source: forexlive.com

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News 

The U.S. Natural Gas Boom Is Fueling A Global Plastics Boom

“I can’t underestimate the importance of the American shale gas and the feedstock costs for INEOS,” Ross says” writes Reid Frazier for npr.org. In Scotland, INEOS got over $350 million in loan guarantees from the U.K. to retrofit the Grangemouth plant for American shale gas.”It is driving investment decisions into Grangemouth which wouldn’t have been made if it wasn’t for the availability of the shale gas.”.  Source: npr.org

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News Oil 

Oil rises after OPEC’s Barkindo says US shale growth may slow in 2020

“U.S. oil output is expected to rise by 1 million bpd to 13.29 million bpd in 2020, the agency said” reports cnbc.com. While Barkindo’s comments supported oil prices, there is not a clear way for OPEC to forecast oil production outside the group, Howie Lee, an economist at Singapore’s OCBC bank said.Oil prices rose on Thursday after industry data showed a surprise drop in U.S. crude inventories while comments from an OPEC official about lower-than-expected U.S. shale production growth in 2020 also provided some support for oil.The EIA raised its…

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News Oil 

It was a landmark day for US shale producers and the outlook is worsening

“Given additional data, I now think that 2020 year-over-year oil growth will be roughly 400,000 barrels per day, which is below current consensus” reports forexlive.com. “I don’t think OPEC has to worry that much more about U.S. shale growth long term.”. Next year, Goldman Sachs cut its production growth estimate to 0.7mbpd from 1.0 mbpd.I believe U.S. shale production on a year-over-year gross basis will be considerably less powerful in 2021 in later years than most people currently expect.At a September Investor Conference, I predicted that 2020 total U.S. year-over-year…

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Futures News Oil 

Oil prices pull back from one-month highs

“Oil futures lost ground Monday, giving back part of the strong gains last week that sent crude to a nearly one-month high” writes Saefong William Watts for marketwatch.com. Gains last week were driven in large part by supply concerns, particularly a large drop in U.S. oil product inventories.December Brent crude BRNZ19, -0.90%, the global benchmark, fell 44 cents, or 0.7%, to $61.29 a barrel on ICE Futures Europe.Growth in U.S. oil production will be a large driver in determining the scope of production cuts by the Organization of the Petroleum…

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News Oil 

Oil pulls back from one-month highs

“December Brent crude BRNZ19, -0.24%, the global benchmark, fell 20 cents, or 0.3%, to $61.53 a barrel” writes Deputy Markets Editor for marketwatch.com. Oil futures lost ground early Monday, giving back a small piece of strong gains last week that sent crude to a nearly one-month high.Brent crude saw a 4.4% weekly advance to close Friday at its highest since Sept. 26.Gains last week were driven in large part by supply concerns, particularly a large drop in U.S. and oil product inventories.Growth in U.S. oil production will be a large…

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News 

DTE to buy shale distribution assets in $2.25 billion deal

“DTE Energy DTE, +0.17% said it’s reached a deal to buy the gathering system and gathering pipeline in the Haynesville shale formation of Louisiana for $2.25 billion in cash plus a milestone payment of $400 million” writes European Markets Editor for marketwatch.com. DTE said the assets, being acquired from Momentum Midstream and Indigo Natural Resources, the primary gas producer supplying the system, include an existing gathering system and a 150-mile gathering pipeline under construction, which will be in service in the second half of 2020. DTE said the deal is…

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News Oil 

U.S. shale seen unlikely to quickly replace barrels lost in attack on Saudi facilities

“Still, its ultralight, sweet barrels are not similar enough to be a good substitute for lost Arab Light oil, Johnson said” writes Midwest Communications Inc for 95kqds.com. HOUSTON (Reuters) – U.S. shale producers have added millions of barrels to global crude supply in recent years, but that does not mean they can quickly replace barrels lost from weekend attacks on Saudi Aramco facilities, energy experts said on Sunday.The strikes in Saudi Arabia knocked out oil-processing facilities and production at the Khurais oilfield, which produces a light oil similar to what…

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