(Oil and Gas 360) – Several hoods related to the International Oil Business in the last few weeks were surprised by market watchers:
A note about the news: “Divided” oil prices – oil and gas 360
In May of the OPEC + Group, 411,000 barrels (b / d) decided to increase production speed.
The decision of the Trump administration sanctions, including secondary sanctions and Iran decided to decide on exported oil. Iran exports 2.0 million B / D with 1.8. This exported oil was mainly purchased by China.
Last weekend, in Opec + June, the production will increase by another 411,000 B / D. This was a larger surprise in the markets because of the price of the markets is already soft.
Questions These low oil prices are arise on the effect of oil and company performance. The oil industry must be accepted as an international industry and local US industry. More than 80% of world oil are produced by governments or companies dominated by the dominant governments of the international industries. In some of these companies, shares are sold to public exchange and act as private enterprises, but they are acting by governments as a major share and government agencies.
The internal US oil and gas industry consists of several hundred private companies, which are large-scale integrated companies, Chevron and Exxon, mainly from small operators. In recent years, these companies made us the world’s largest oil producer. This was done with an individual initiative and innovation, which is available from the free enterprise. Other countries have difficulty implementing technological innovations prepared by American companies.
Many oil-producing countries have little income from other sources. The IMF assesses the price of “uninterrupted” oil for oil revenues to meet the country’s national budget. These calculations lost from about $ 50 to $ 1 to $ 1 to $ 125 to the UAE to $ 115 to $ 125 per barrel, Kazakhstan, Algeria and Iran. Saudi Arabia is $ 90.94. With oil prices, these countries must regulate budgets, be immersed in reserves or increase production rates with the amount of other manufacturers.
RBC Capital, Brent oil prices for Break-Even books in London: 56 and $ 57 per barrel for Chevron and Exxon, $ 48 per shell, $ 71 and $ 71 per shell. These assessments include Dividend Payment Protection.
Private enterprise companies operating in the domestic American oil and gas work are investigated by the Federal Reservation and 36 Kansas city of Federal Reserve departments in the first quarter of the city of Dallas and Kansas. Companies in the survey are divided into 10,000 B / D and “small” producers producing more than 10,000 b / d.
These studies compose “break-even” WTI prices in accordance with operating costs for several different fields. The figures generally quoted are the reply of the average company. Bu xərclər Cənubi Texasın qartaqalı Ford bölgəsində təxminən 26 dollar / bareldən, permiya hövzəsi üçün 33-33 dollardan 35-50 dollar / barel və 42 ilə 42 ilə 42 ilə 45 ilə 42 ilə 45 ilə 45 ilə 45 ilə 42 ilə 45 ilə 45 ilə 45 ilə 45 ilə 45-55 dollar / barelə qədər. These are oil prices needed to pay for operating costs for existing production.
Fed inquiries also ask the price needed to dig new wells. A moderate reaction for the price needed to dig a new well to change the production decrease varies from about $ 50 per $ 65 per barrel to $ 65 per barrel.
As mentioned above, the figures are widely quoted in the press are the average of the company’s answers. The range of answers is very wide – about $ 12-80 consists of $ 12 – barrels. Some companies require more prices than these quotes, and some may work at lower prices or drilling or drilling. The main point of the WTI, which is quoted by the oil, is the price of merchants in the New York Trading Exchange and is in London’s ice in Brent. This is not a price paid for an operator in the field. An oil company field selling price affects how much the buyer will pay and the oil and transportation from the processing plant. A company will sell different oils from various projects in various projects, but usually the prices of quoted above will be well aware of the prices of quoted prices.
Kansas City survey also asked which oil prices will be required to start an aggressive growth drilling program for the increase in production. These answers rose about $ 85 worth $ 85 with a barrel of about $ 81.
The surveys include general questions related to the outlook of operators. The comments showed a common sense of uncertainty. The US economy and trade relations, disruption and uncertainty are expected to be expected. The General President of the Federal Reserve said the economy is in good condition. Despite being sensitive to a possible recession, such a recession has not yet developed. Great, beautiful tax laws operating in Congress and reduce capital expenditures by lowering taxes to January, must reduce costs and reduce the costs of “continuous”.
Summary, oil prices should remain a narrow range for the rest of the year and help reduce inflation. Different world conflicts may disrupt the supply or the student may affect. The European future will be engaged in trying to sort what he wanted. The Iranian conflict is an immediate problem and may have a short and strong military effect to cancel Iran’s nuclear program. I expect the Trump Administration to be violated, mainly will sort himself and place it with autumn. I expect drilling to be kept in a modest proportion, protect production rates, but these prices will not take place in the “drilling, baby, drilling”.
