1. New fractured wells are diving
– The collapse in oil prices has already resulted in the removal of more than 150 platforms in just three weeks.
– This year, the number of newly completed wells brought online could fall to its lowest level in over a decade to less than 9,000, according to Rystad Energy and Qz.com.
– Already, seven oil and gas companies filed for bankruptcy in 2020, a figure that could climb with the WTI to less than $ 30 a barrel.
– Oil production in the United States fell 600,000 bpd last week, proof that the exit has already started.
2. Oil production in the United States has already peaked
– The American EIA predicted that oil production could decrease by 0.5 mb / d in 2020 and potentially by 0.7 mb / d in 2021.
– But, obviously, it all depends on the price. Standard Chartered estimates that the United States could lose 4 mb / d by the end of next year if oil prices remain at $ 30 per barrel.
– In any case, oil production in the United States has peaked and it will be difficult to return to these levels again, given the scale of supply to the financial markets.
– The EIA said the United States would again become a net importer of oil later this year, ending a brief period in which the United States was a net exporter (for the first time since 1973).
3. Increase in permian reductions
– As demand suddenly dropped, refineries had to reduce the production of refined products. This led to oil being pumped into pipelines and to the wellhead.…