U.S. shale companies facing a money-losing reality after oil price collapse

first_img FacebookTwitterLinkedInEmailPrint分享Bloomberg:America’s shale producers already had a profitability problem. It just got a lot worse.At a stroke, Saudi Arabia and Russia and their battle for market share have made almost all U.S. shale drilling unprofitable. Only five companies in two areas of the country have breakeven costs lower than the current oil price, according to data compiled by Rystad Energy, an Oslo-based consultancy.Wells drilled by Exxon Mobil Corp., Occidental Petroleum Corp. Chevron Corp. and Crownquest Operating LLC in the Permian Basin, which stretches across West Texas and southeastern New Mexico, can turn profits at $31 a barrel, Rystad’s data show. Occidental’s wells in the DJ Basin of Colorado are also in the money at that price, which is where oil settled Monday.But that’s not the case for the rest of the shale industry — more than 100 operators in a dozen fields. For them, drilling new wells will almost certainly mean going into the red.Shale projects are heralded for their ability to be quickly ramped up and down. But because output from these wells declines much faster than from their old-school, conventional cousins, companies have to drill more of them just to keep output flat. That has meant sluggish investor returns, one of the main reasons oil and gas represents less than 4% of the S&P 500 Index.At this point, “companies should not be burning capital to be keeping the production base at an unsustainable level,” said Tom Loughrey, a former hedge fund manager who started his own shale-data firm, Friezo Loughrey Oil Well Partners LLC. “This is swing production — and that means you’re going to have to swing down.”“Even the best operators will have to reduce activity,” said Artem Abramov, head of shale research at Rystad. “It’s not only about commerciality of the wells. It’s a lot about corporate cash flow balances. It’s almost impossible to be fully cash flow neutral this year with this price decline.”[Rachel Adams-Heard and Kevin Crowley]More: Shale’s new reality: Almost all wells drilled now lose money U.S. shale companies facing a money-losing reality after oil price collapselast_img read more

Former Eagles defender urges Iwobi to leave Everton

first_imgFormer Nigeria defender, Ifeanyi Udeze, has advised Alex Iwobi to quit Everton. The ex-Arsenal attacker has fallen down the pecking order under Carlo Ancelotti, and new signings will only make it more difficult for him to get a place in the team. Iwobi was not in the match-day squad for their 1-0 win over Tottenham in the Premier League at the weekend, and Udeze thinks the Super Eagle should leave Goodison Park. read also: Rodriguez joins Iwobi, others at EvertonAdvertisement “I think Iwobi should look for another club especially with James Rodriguez signed it will be difficult for him to play,” Udeze said on Brila FM. “Imagine against Tottenham he did not make the bench and even the squad. So for me, he should start looking for another club. “It’s painful for me but as it is, I think the best thing is for him to go elsewhere.” FacebookTwitterWhatsAppEmail分享 Loading…last_img read more

Fast and furious: Real Madrid acts over fans’ ‘violent actions’

first_imgAfter its title charge in Spain’s La Liga stalled, Real Madrid is planning to take action against supporters who allegedly vandalized cars owned by the club’s players.The squad returned to the Spanish capital following its 2-1 defeat by arch rival Barcelona in the early hours of Monday morning where they were met by fans who were unhappy with their display.It is alleged that cars, including those owned by Gareth Bale and Jese Rodriguez were both targeted, while coach Carlo Ancelotti was also allegedly abused.Real said on its website that it had suspended a club member and banned him from their properties pending an investigation.Three men are alleged to have insulted players and struck at least one of the vehicles.”The club has already identified the individuals responsible, one a Real Madrid member, for these aggressive and violent actions against several of our players,” Real said in the statement. “Details of this member’s identity have been sent to the club’s discipline commission, requesting that it expel the individual from Real Madrid for what is considered a very serious offense.”This afternoon, the discipline commission held an emergency meeting and decided to open a disciplinary investigation and provisionally suspend the individual’s rights as a member and access to the Santiago Bernabéu or any Real Madrid facilities.”Real Madrid has notified Spain’s National Anti-Violence Commission of the incidents that took place, as well as the identities of the individuals responsible, requesting that it apply those sanctions that it considers appropriate”Furthermore, Real Madrid will take any applicable legal action against the individuals responsible for these incidents”According to television pictures captured by Spanish television channel Cuatro, the incident happened when the players failed to stop their cars to speak with fans outside of the club’s Valdebebas training complex. In recent weeks Bale has been singled out for criticism with some supporters claiming the winger is struggling to justify his $120 million price tag.Real Madrid is four points behind leader Barcelona with 10 games of the La Liga season remaining.Supporters are frustrated at the team’s current run of form after it squandered pole position in the title race to Barcelona.Real started the season on fire and set a new Spanish record by winning 22 games in succession.But its form has faltered leading club president Florentino Perez to hold an impromptu press conference to defend Ancelotti only last month. –last_img read more