HOUSTON (Reuters) – Shale oil producers are throttling back so quickly on drilling that U.S. crude output could fall sooner than expected, within months, executives say as they slash costs to cope with tumbling crude prices and compete with Persian Gulf rivals.
About a dozen chief executives who talked to Reuters or who spoke publicly, acknowledged they were taken aback by the scale and speed of the cutbacks, noting how this oil price downturn was different from several previous episodes in their careers.
HOUSTON, Feb 23 (Reuters) – Shale oil producers are
throttling back so quickly on drilling that U.S. crude output
could fall sooner than expected, within months, executives say
as they slash costs to cope with tumbling crude prices and
compete with Persian Gulf rivals.
About a dozen chief executives who talked to Reuters or who
spoke publicly, acknowledged they were taken aback by the scale
and speed of the cutbacks, noting how this oil price downturn
was different from several previous episodes in their careers.
HOUSTON, Feb 20 (Reuters) – Barely two months into his new
job as the head of the world’s largest offshore driller, Steven
Newman was steering Transocean through the 2010 Gulf of
Mexico oil spill, quickly earning a reputation as a CEO with a
Too steady, perhaps.
Since Sunday Newman, 50, is out of work. People inside and
outside the company say his abrupt departure reflected in part
the board’s view that the 20-year company veteran was too
conservative and lacked a bold vision for a period of dramatic
industry change that began at the end of the last decade.
HOUSTON, Jan 28 (Reuters) – Continental Resources Inc
Chief Executive Harold Hamm predicted on Wednesday that
signs of a rebalancing of the crude oil market would emerge by
the middle of this year.
He said lenders and capital markets were “forcing” U.S. oil
producers to scale back drilling plans, shut in old wells and
defer well completions.
HOUSTON (Reuters) – Collapsing crude prices are confronting scores of smaller U.S. oil producers with the grim choice of either shutting older high-cost wells or burning through cash in the hope of riding out the downturn.
As oil prices fell by more than half over the last six months from more than $100 per barrel, the U.S. oil industry responded by slowing its blistering growth and dialing back expansion plans.
By Terry Wade
(Reuters) – Bankruptcy filings in the oil and gas sector are
widely expected to increase in the coming months following a
slide of more than 50 percent in crude oil prices since June, to
about $50 per barrel.
The price decline has put acute pressure on small companies
with weak balance sheets and hurt sales for related services
companies that sell everything from sand to drilling rigs to
HOUSTON (Reuters) – Major global oil companies have moved to cut pay for contract engineers by 15 percent as they grapple with crude prices down by half since June, the chief executive of Swift Worldwide Resources, a top energy staffing firm, said in an interview.
Tobias Read said the hardest hit areas in the industry would be U.S. and Canadian unconventional onshore oil operations, which tend to have higher operating costs than conventional fields.
HOUSTON/NEW YORK (Reuters) – Oilfield services provider Baker Hughes Inc said on Thursday it is in preliminary merger talks with its larger rival Halliburton Co, though any potential deal would likely face antitrust concerns.
Two people familiar with the matter, who spoke on condition of anonymity, said Halliburton was looking to buy Baker Hughes, in what would be the second-largest energy deal of this year.
HOUSTON, Nov 13 (Reuters) – Oilfield Water Logistics LLC
(OWL), which transports, treats and disposes of water for energy
companies in the U.S. shale oil boom, said on Thursday it bought
competitor WestWater Energy, the latest step towards
consolidation in the fragmented sector.
The terms of the purchase were not disclosed. The
acquisition means Dallas-based OWL, a recently formed company
backed by a unit of private equity group Natural Gas Partners,
now has 27 oilfield water facilities in operation or development
in states including Texas, Utah, Colorado and Wyoming.
HOUSTON (Reuters) – Output from U.S. shale oil fields will keep growing for some time even if crude prices dip further, and people have been too quick to write off companies in shale basins, the head of a company that provides hedging services to U.S. producers said.
Conventional wisdom among oil analysts is that Saudi Arabia, frustrated by a global supply glut caused by soaring output in the United States, is prepared to let prices fall to squeeze U.S. capital-intensive shale oil producers out of the market.