Shale Jobs Disappear As Production Growth Slows | OilPrice.com

Friday December 13, 2019

1. OPEC+ cuts deeper

– OPEC+ agreed to cut output by an additional 500,000 bpd last week. Overall, the group has agreed to hold 2.1 mb/d off of the market for the first quarter.

– OPEC production is now 2.69 mb/d lower than it was a year ago. Iran and Venezuela have lost a combined 1.4 mb/d compared to last year.

– Those disruptions were entirely offset by a 1.5 mb/d increase in supply from the U.S. this year.

– But the task for OPEC+ is not over. The IEA still sees a supply surplus of 0.7 mb/d in the first quarter.

2. Tullow’s 70% stock meltdown

– Tullow Oil (LON: TLW) saw its share price fall off a cliff this week, falling by 70 percent in a single day. It was one of the worst performances from a London-listed company in a decade, as the FT put it.

– The meltdown was the result of a revelation by the company of its dismal performance in Ghana. The company’s flagship operation has a list of technical issues – in particular, more water than expected has entered its oil field.

– Tullow slashed its production guidance to just 70,000 bpd in 2020, down from 100,000 previously.

– Cash flow is expected to fall to just $150 million as a result, down from a previous forecast of $500 million.

3. Shale base declines increase

– The IEA sees U.S. shale growing by 1.1 mb/d in 2020, down from 1.6 mb/d in 2019, but still a substantial growth rate.

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This post was originally posted on OilPrice.com Daily News Update – View Original Article

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admin
Have lived and invested in Venezuela full time for the last eight years and visited for each of twelve years prior to that. Studied and closely followed developments in Venezuela since 1996.