Predicted a bleak future of shale oil in the United States

a Major American producers of oil and natural gas (Continental Resources Inc., EOG Resources Inc., Parsley Energy Inc) on the background of growth of oil prices to $40 per barrel, announced the resumption of production at the closed wells.

However, despite positive developments, the experts predicted a bleak future for the US oil shale industry, which was faced with a strong decline of oil production, reports Bloomberg.

Analysts predict that oil production will be about 16% below the maximum value recorded at the beginning of the year, said

Experts point out that the main problem for senseview is a shortage of cash from banks with wall street after a decade of financial prosperity. In addition, difficulties arise due to the exhaustion of known reserves and the need to develop new fields.

Recall that in spring in the United States began the bankruptcy of the companies producing shale oil. So, in early April, the structure called Whiting Petroleum Corp. expressed its intention to refinance $2.2 billion of its debt by replacing creditors release 97% of the shares. Causes of bankruptcy of a company called low energy prices, the price war is Russia and Saudi Arabia that followed the collapse of the deal, OPEC, and the “uncertainty” with regard to the pandemic coronavirus infection COVID-19.

we Add that since the beginning of this year on the global oil market rode several waves of falling prices for “black gold”. A negative situation was caused by a whole complex of factors: a General overproduction of raw materials, a sharp drop in demand due to the rapid spread of coronavirus infection COVID-19 (March 11, was declared a pandemic) and concerns about its impact on the global economy and the collapse of the deal, OPEC+ (officially from April 1, but in fact, after fruitless negotiations of the countries-oil producers at a meeting on March 6 in Vienna).

However, 12 April OPEC+ agreed on a new deal, joined by 23 States. The agreement will be valid for two years, from may 1, 2020 to may 1, 2022-th. In may—June this year, the production cuts will amount to 9.7 million barrels per day (from October 2018), then — until the end of 2020 — 8 million barrels, and 6 million by the end of April 2022. New business OPEC+ was a forced reaction of oil producing countries on the situation in the market and pressure from the United States. Overall, however, it is not blocked volumes decline in global demand, besides on the market have accumulated huge reserves of raw materials.

At the meeting on June 6, the member countries of OPEC+ extended on a month — until the end of July — the period of validity of the agreement to reduce oil production to 9.7 million barrels per day.

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