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  • LwC commented on LwC's topic 07-28 15:42
    Bloomberg: Andy Hall Sees ‘Phenomenal’ Demand in U.S. and Asia Ending Oil Glut
    Bloomberg: Andy Hall Sees ‘Phenomenal’ Demand in U.S. and Asia Ending Oil Glut by Simone Foxman and Bradley Olson July 7, 2015 For the past...
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    LwC 07-28 16:42
    • Here's the latest from Art Berman:

      Rig Count Increases by 19 As Oil Prices Plunge–What Are They Thinking?

      Posted in The Petroleum Truth Report on July 26, 2015

      "Don’t be distracted by the noisy chatter about savings through efficiency or re-fracking. Just look at the income statements and balance sheets from first quarter and it’s pretty clear that most companies are hemorrhaging cash at these prices. Second quarter is likely to be worse and it gets uglier when credit is re-determined in Q3, hedges expire, and reserves are written down after Q4."


      FWIW here's the average net wellhead prices received by a certain producer during months from September 2014:

      Month: 09/10/11/12/01/02/03/04/05/06

      Price ($/bbl): 85/77/69/52/41/42/40/46/52/52 (est. for July is $43)

      This is conventional oil production. This producer has average production costs of about $8/bbl. The producer is currently averaging CapEx cash outflows of about $44/bbl (in terms of current production volumes) for ongoing exploration, new well completions, and well rework operations. So, this producer needs about $52 net to the wellhead for cash flow break-even at current level of operations.
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