The United States is finally ready to drill.

U.S. manufacturers have set an example last year. The industry did not want to do that. After years of waiting, he was forced to do so by the plague and its shareholders, lowering their legs and demanding higher returns. But it may only be a time for change.

The US dollar should now be used for price fluctuations. Still, the epidemic of malnutrition must be undermined. In that ordeal, big producers had many unhappy shareholders. Connect with them by cutting costs, reducing production, and generating cash flow.

Most of them did so with the help of OPEC + from an unprecedented 7.7 million BPD composite product and some non-OPEC manufacturers. Since then, demand has returned, and so have prices. All eyes were now on the United States, hoping that the drones would begin to speed up the process. So far, the industry has not met expectations. But that does not seem to be the case for a long time.

U.S. crude oil production to increase by 800,000 BPD next year, Financial Times reports Reported this week. Not surprisingly, the price of US oil is now around $ 70 a barrel, making most oil wells profitable again, the report said. But this time there is something special. According to IHS Market Analyst, the payment will be made by private accountants.

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While this prediction is interesting, it is not surprising. Even before the plague broke out, disgruntled shareholders in Shale Oil were the talk of the town. Burning years of cash to make the United States the world’s largest oil producer, along with shareholders in the acquisition of natural resources, Daven Energy and Continental Resources. These companies and their peers bought for profit.

As a result, when these dividends did not meet expectations, grievances grew. It has also been associated with the popularity of the energy transfer narrative, which has led to the growing safety of oil prices in a dynamic world. So public transport drivers have one option left: Start delivery.

You have been doing this now. According to Reuters recently Reported, The biggest Shale players are increasing their dividends and taking active steps to keep stocks on the board as well as stock exchanges and reduce their debt burden – a major cause of concern among Shale investors.

As a result, after years of despair, stockbrokers have been raising shareholders and are still in danger of returning if they start digging harder. However, this should be done as soon as possible, as the stockpile of unfinished wells dug during the recovery period is reduced. Therefore, developers need to increase costs to maintain their current status.

Meanwhile, small private dentists are hanging on their teeth until the worst epidemic is over. Now that this is behind them, their hands are free to grow as much as they want. Private directors do not have shareholders to report to. Their only concern is the market. If there is enough interest to push prices to a profitable level, then these companies will drill and shed more oil. And his attitude toward interest is very cruel.

According to IHS Markit’s Raoul LeBlanc, it is not surprising that those private oil refineries will account for more than half of the expected increase in U.S. crude oil production next year. In any other year, this is up 20 percent, according to the FTA.

“Private investors are involved in this general capital discipline. For them, this is their window, ”IHS Mark Analyst told FT. They are thinking, ‘Opportunity is here and I will use it’ because they see it as their last, good fortune.

In January, when prices return and WW It traded for about $ 50, and a Wood Mac analyst called it a siren song – the expected acquisition and pressure prices that are expected to turn American shale producers back into growth. This is largely due to the new capital discipline. However, small producers are very flexible because they do not have shareholders to stay happy. And they can be a low risk for prices before they are too long.

Most shale oil is profitable at $ 50 prices. On top of that, for $ 20, most shale oil is profitable. No one can blame private individuals for their chances of making money on their oil resources, not long-term forecasts – even if these are more than predictions – about the end of the oil era.

By by Irina Slav

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