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 collapse
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Dalung ditches GiwaOlawale Ajimotokan in AbujaThe Extra Ordinary General Assembly (EOGA) of Nigeria football that sat in Abuja wednesday activated Article 37 (1) of Nigeria Football Federation (NFF) Statutes by mooting suspension for Ambassador Chris Giwa, and five others for bringing Nigeria football and the country to disrepute in clear contravention of NFF statutes and other extant football laws.This decision was contained in a communiqué issued after the meeting and signed by E.C Chukwuemeka.The other accused persons are Yahaya Adama, Muazu Suleyman, Sani Fema and Effiong Johnson. They are to appear before the congress to defend themselves.Rumson Baribote, Shehu Adamu, Ben Agary and Olajide Fashikun were found guilty by the General Assembly of aiding and abetting the gross misconduct and are to appear and defend themselves before the NFF Committee on Ethics and Fair-play. Giwa, the founder of Giwa Football Club of Jos, and others were accused of committing infractions such as illegally contracting a law firm based in South Africa in the name of the NFF and refusing to pay for the services up to a point where judgment was given against the NFF by the South Africa court.The congress determined that their action negates NFF statutes, regulations, directives and decisions of FIFA, Confederation of African Football (CAF) and the West African Football Union (WAFU).The sanctions on Giwa was the tipping point of the NFF power struggle, that climaxed with last week’s order granted by a Jos High Court, annulling the election of Giwa’s main rival, Amaju Pinnick as the validly elected president of NFF.Giwa had on Tuesday insisted that he was the winner of the disputed election of August 29, 2014 and had sensationally sacked the 36 state FA chairmen and threatened to take over the NFF Glass House yesterday.However, it turned out to be an empty threat as he did not turn up at the heavily fortified football secretariat.But the biggest surprise at yesterday’s event was the most unexpected recognition accorded the General Assembly, and by extension Pinnick, by Sports Minister, Solomon Dalung.Dalung denied receiving any court order from a Jos High Court in relation to the NFF unrest.The minister, who had a brush with journalists when the latter protested against Dalung’s verbal accusation of corruption against the reporters, claimed that the only court orders concerning the NFF election were issued in 2014.“As the minister of sports and a lawyer, till date, I have not received any court orders this year. The only orders served on me, were all dated 2014. I have not seen any order dated 2016,’’ Dalung insisted.The minister noted that though association football law forbade litigations, Giwa’s decision to pursue his grievances in line with Section 41 of Nigerian law, if not regulated, would open the floodgates of confusion arising from decision of aggrieved parties to approach ordinary courts to resolve football disputes.He scorned Giwa for being in a haste to execute a ‘court order’ without giving the other party the 30-day window permitted to appeal under the Nigerian law.“You can’t go to court, get judgment and upon that judgment want to deny the other party the right to appeal. Anybody that is panicky is not a sincere person. If you have subscribed to be a member of the international football family, you have to bind by their rule on football. If you are not interested, then you go out,” Dalung said.He said that the NFF crisis has effectively discouraged corporate bodies from sponsoring football in the country as no company wanted to invest in a business that thrives in confusion.Dalung also appealed to Pinnick to narrow the gap with the opposition by bringing them to a table in the interest of Nigeria football.Share this:FacebookRedditTwitterPrintPinterestEmailWhatsAppSkypeLinkedInTumblrPocketTelegram