Ernest's Feed
Nov 6, 2015

U.S. shale producers see big budget cuts for 2016

HOUSTON/NEW YORK, Nov 6 (Reuters) – U.S. shale oil
producers, having slashed fat from 2015 budgets after a
50-percent drop in crude prices, risk cutting to the bone next
year as they pare spending further and get ready for a prolonged

Top shale companies including Devon Energy Corp,
Continental Resources Inc and Marathon Oil Corp
this week released preliminary 2016 plans for capital spending
that may fall by double digits.

Nov 5, 2015

EOG Resources profit widely beats Street on cost cuts

Nov 5 (Reuters) – Oil producer EOG Resources Inc
posted a better-than-expected profit on Thursday as cost cuts
and efficiency gains helped offset falling crude prices.

The company, which operates in North Dakota and Texas,
slashed costs to pump, transport, process and market oil and
natural gas, signs that Chief Executive Bill Thomas said show
the company is working “to be successful in a low commodity
price environment.”

Nov 4, 2015

Continental Resources boosts crude output forecast

Nov 4 (Reuters) – Continental Resources Inc, North
Dakota’s second-largest oil producer, boosted its production
forecast on Wednesday despite posting a quarterly loss, betting
technological advancements and cost cuts will help it extract
more oil at a cheaper price.

The bold bet, just as the company’s credit line was
increased, matches an evolving industry trend. Companies have
been raising output projections, banking on efficiency gains to
help offset the steepest oil price crash in six years.

Nov 4, 2015

Despite gloom, four U.S. shale oil firms lift output views

By Anna Driver and Ernest Scheyder

(Reuters) – A handful of U.S. shale oil producers are pushing up their production forecasts, saying efficiency gains from drilling in prime rock are helping them eke out more crude in the middle of the worst price crash in six years.

The slightly bolder outlooks this week from Oasis Petroleum Inc (OAS.N: Quote, Profile, Research, Stock Buzz), Devon Energy Corp (DVN.N: Quote, Profile, Research, Stock Buzz), Pioneer Natural Resources Co (PXD.N: Quote, Profile, Research, Stock Buzz) and Diamondback Energy Inc (FANG.O: Quote, Profile, Research, Stock Buzz) show that the confident swagger that typified the U.S. shale boom’s early days has yet to be fully tempered by the more than 50 percent drop in oil prices CLc1 since last year.

Nov 3, 2015

Oasis Petroleum profit beats thanks to cost cuts

Nov 3 (Reuters) – North Dakota oil producer Oasis Petroleum
Inc posted a better-than-expected quarterly profit on
Tuesday as it successfully slashed costs to offset plunging
crude prices.

Bucking the industry trend to hunker down, Oasis also
boosted its production forecast for the year and locked in
hedges for 2017, steps that signal the Houston-based company’s
confidence it can weather the low-price storm.

Oct 31, 2015

Chevron slashes jobs and spending to weather low oil prices

By Ernest Scheyder

(Reuters) – Chevron Corp (CVX.N: Quote, Profile, Research) is slashing 10 percent of its workforce and sharply paring back its budget, with Chief Executive Officer John Watson giving a downbeat view on Friday of an industry beleaguered by low oil prices.

A more than 55 percent decline in crude oil CLc1 since last year has rippled through the global energy industry, forcing producers and their suppliers to make tough decisions.

Oct 30, 2015

Chevron slashes 2016 budget to weather low oil prices

By Ernest Scheyder

(Reuters) – Chevron Corp (CVX.N: Quote, Profile, Research, Stock Buzz), the second-largest U.S.-based oil producer, slashed its 2016 capital budget by 25 percent and said it would lay off roughly 10 percent of its workforce, one of the most-drastic reactions to date to the plunge in crude prices CLc1.

The price drop has forced Chevron and dozens of its peers to make tough decisions about what projects to fund or not fund in order to offset natural declines at its existing fields.

Oct 28, 2015

Whiting writes off $2.57 bln in assets, including Kodiak

, Oct 28 (Reuters) – Whiting Petroleum Corp
, North Dakota’s top oil producer, wrote down $2.57
billion in assets on Wednesday, including its 2014 buyout of
rival Kodiak Oil, the latest sign the energy industry is under
immense pressure from the crude price slump.

The Denver-based company wrote down the $870 million in
goodwill it was carrying on its balance sheet from its December
2014 buyout of Kodiak, which was valued at $1.55 billion at the

Oct 25, 2015

Green incentives seen as key to lifting U.S. oil export ban

, Oct 25 (Reuters) – Legislation crawling its
way through Congress that would end the U.S. ban on crude oil
exports will succeed only if tied to renewable energy
incentives, said Senator Heidi Heitkamp, a moderate Democrat
working to convince others in her party to support ending the
decades-old restrictions.

Heitkamp, who represents oil giant North Dakota, said she is
convinced her bill or a similar one can pass by the end of the
year, though getting the White House and others on board will
require some kind of financial support for wind, solar and other
renewable energies, energy efficiency and water conservation

Oct 22, 2015

North Dakota throws a two-year lifeline to oil ‘ducks’

By Ernest Scheyder

WATFORD CITY, N.D. (Reuters) – North Dakota regulators
approved a plan on Thursday to give oil producers an extra year
to bring a new well online, a change designed to give the energy
industry breathing room during the crude price downturn.

Companies will now have up to two years to hydraulically
fracture, or frack, drilled-but-uncompleted wells, or DUCs,
under changes approved unanimously by the North Dakota
Industrial Commission (NDIC), which is comprised of the
governor, attorney general and agriculture commissioner.