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

Implementation plans for universal childhood education underway

first_imgVeda GeorgeAssistant education officer in the ministry of education Veda George has indicated that in order to provide access for the 20% of the country’s children who are not at preschool; several measures must be put in place.The government of Dominica has communicated their intention through the minister of education to fully implement Universal Early Childhood Education in Dominica by September 2012.George told the third consultation on universal early childhood education that there are some preschool which are still not registered with the ministry of education and this is a top priority.“We are working towards proving quality access to 20% of children within the pre-school age who for one reasons or the other are not accessing the service. It would mean that in some instances, early childhood programs would have to be integrated within existing primary schools however no private preschool will be closed expect if they fall below the expected standards”.George said the ministry of education has commenced accommodating private preschools, within the primary schools settings, ensuring that the students are within a safe environment.“In order to provide access for the children who are spread across the country, we may have to establish a pre-kindergarten, utilizing already existing space, with modifications or we would have to construct a new facility next to our primary school”. According to George an audit to determine capacity must be conducted in order for the ministry to make a final decision.Dominica Vibes News 49 Views   no discussions Share Tweet Sharing is caring!center_img EducationLocalNewsPrimary Implementation plans for universal childhood education underway by: – April 4, 2012 Share Sharelast_img read more