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U.S. shale boom nears turning point: Kemp

(John Kemp is a Reuters market analyst. The views expressed are his own)

LONDON – Oil production from major U.S. shale plays will decline by almost 60,000 barrels per day between April and May according to new estimates from the Energy Information Administration.

Production is expected to decline in the Bakken, Niobrara and Eagle Ford plays next month. Only the Permian Basin is expected to post a small month-on-month increase in output (“Drilling Productivity Report” Apr 2015).

With the number of rigs drilling for oil in the United States down by almost 53 percent in just six months, according to oilfield services company Baker Hughes, the shale boom appears to be approaching a turning point.

The crude market remains substantially oversupplied as a result of past production, but the degree of excess supply should narrow in the coming months.

The attached chartbook presents a selection of contemporary indicators for supply, demand, stocks and prices, including spreads, in the U.S. oil market. To view the chartbook, click here.

(Editing by Jason Neely)

This article was from Reuters and was legally licensed through the NewsCred publisher network.


  1. Rene Lopez James Valdez Freddy Melgoza Thomas Howard Jeremy Bolding Antonio Junior Manzanares Raymon Espinoza Jose Rodriguez Jose Ramirez Arturo Chaparro Raymond Sheffield

  2. I’m ready to get back at it!!!

  3. Even if the price of oil recovers, operations will not resume to near the levels that they were at the end of 2014. Companies will look at maintaining the price of oil, and how to increase profits without raising costs.

    • True…in the short term, however this time next year I bet oil is past $100.

    • I think it very well could be too. Producers may find it more profitable to continue to refrack existing wells and drill new laterals into old wells. IMO, the idea of drilling until there are no more holes to drill as fast as you can is a big reason we’re in this mess.

    • Unsure about that. This is the second one of these puppies I’ve had to ride out. This is silly but for some strange reason it seems to happen in ten year cycles. This is probably the worst one yet though since I’ve been out since november. I was one pessimistic when oil start rising so rapidly around 2002. It should of never went from 38 or 40 a barrel to over 100. Only downfall from there. A profit can still be made from 60 oil. But once u peak, and the it starts spiraling down they do t want to lose those profits.
      Praying for everyone involved. Hard working backboned people who just want stability and the families who depend on them.

    • Derrick Whodat Gaspard um…it’s happened more than twice in ten years. I’ve been 8n it since 1998.

    • No Tiffany it hasnt went bust more than twice in the last ten years. The last big one was in 08 ma’am.

    • I didn’t see it as bad in 2008 as it was in the early 80’s

    • Carolyn, If you recall in the 80’s OPEC was caught in a scandal dumping oil into the Gulf claiming there was a shortage all in a ploy to raise prices.

  4. Believe it when you see it.

  5. I’m looking for longevity,with stable and steady work!

  6. Be nice to go back to frilly

  7. Yah im up in nodak now its not looking good for truckers when everything is being piped in now

  8. Rich people waiting to get richer while the ones in the field barely hang on

  9. Che’ who’s falt is that !?? Theirs for working all their life?!???? Hhhhmmmm

  10. Well I hope to see it come back soon. Would like to jump back in and work but right now it’s really hard

  11. Managing your money and hard work makes you rich,not oil booms. Been through the oilfield for 31 years!

  12. Well said Brenda Rauser

  13. This is were the Saudi’s spike the oil and send are economy in to a recession , take ten years to get those rigs back together and drilling again

  14. Yeah this normal job 8 hour crap sucks would rather be trippin pipe anyday lol

  15. With an estimated 3000 unfracked wells, and historic storage levels…I don’t see prices just spiking anytime soon. I hope I’m wrong…

  16. Holding on and hopping for the best!!!

  17. Things in Nope Dakota won’t start picking up until sweet crude is above $80/bbl. I.e. when oil companies are doubling their money again

  18. Jose Jaimes theres still hope lol

  19. Oil field workers made decent money, yes others had decent wages, but didn’t begin to match oil field wages and hours. easy come, easy go and money is all gone . Some of us didn’t come close to making those wages and still saved money . Life is good 🙂