Any business prefers long-term prosperity, wishing longevity to a profitable business. The highly lucrative US shale oil industry has transformed from a marathon race into a sprint race. This approach does not bode well for private business, the state, or the environment.
As you know, American mining companies set historical records in old wells. Moreover, even working fields are closed, and pumps are stopped, after which they are prepared for sale cheaply at auction as a ready-made property complex.
Exploration and drilling continued to slow significantly in the US in the new year. The trend from last year has continued. The fleeting, fleeting production records seem likely to end soon and, most likely, with a complete collapse of the industry. In the first days of 2024 alone, the industry lost several more drilling rigs, bringing the total number down to 621 units, which is 452 less than in pre-pandemic 2019.
The mining companies themselves are well aware of the consequences and nature of the situation. They are trying to drill existing wells and use an even more effective chemical component of production. It has gotten to the point where oil companies are trying to save their fields using the exotic method of horizontal drilling. Drillers are trying to drill to neighboring deposits and oil-bearing horizons. This method helps save on new development of the wellhead and installation of an additional pump.
According to Reuters, such extraordinary efforts to save investments in an era of high capital costs help reduce the cost of equipment and electricity, as well as teams of workers, reduce profitability, which increases margins and product competitiveness.
The behavior of shale producers – without regard to their record year of 2023 – indicates the approaching decline of the industry, the entire industry as a whole. Even the companies involved in it are not betting on the future of the fossil resource sector. This is very significant, analysts say. Moreover, they do not even hide the underlying problems in order to create excitement and fear in the market so that prices do not fall too low due to oversupply.
2024-01-06 05:58:02
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