07-07-2015, 10:34 PM
U.S. shale has offered the oil industry a business model that is different from conventional drilling of the past. High initial decline rates, especially compared to conventional wells, requires companies to continuously drill to keep up production. But with lower upfront costs and shorter ramp up times, shale drilling is arguably less risky than a multibillion-dollar megaproject that the oil majors had become accustomed to over the past decade. And in a period in which prices are relatively weak, shale could allow exploration companies to increase drilling or throttle back depending on market conditions, providing a degree of flexibility over conventional drilling that often has longer lead times.
Not Deterred By Huge Risks, Shell Opts For Megaprojects | OilPrice.com
It’s a Greek debt sustainability analysis by IMF staff. Yes, one of those analyses. A preliminary one, but in many ways the DSA to end all DSAs. It is not just because this is the frankest effort by IMF staff so far to acknowledge the straits Greece is in regarding its debt to official creditors, and accordingly, their most radical proposal yet to euthanise large parts of that official debt.
How we would have restructured Greece’s debt, by the IMF | FT Alphaville
Crude tumbled the most in five months amid mounting concern about economic stability in Europe and Asia. Futures dropped 7.7% in New York and 6.3% in London. European leaders will hold an emergency summit Tuesday after Greek voters rejected creditors’ bailout terms. China is seeking to restore investor confidence after the Shanghai Composite slumped since mid-June. U.S. Secretary of State John Kerry tempered expectations that diplomats in Vienna will quickly reach a deal with Iran.
Oil falls most in five months as Greece, China boost demand risk
Petrobras has long been a pioneer in the adoption and deployment of deepwater technology. This has enabled them to build huge reserves of some 16 Bbbl of oil. Converting these reserves to production, however, is another matter and Petrobras has a history of setting ambitious targets, with a poor record of meeting them. The long delayed ‘2015-2019 Business and Management Plan’ released last week is a reflection of the new reality for Petrobras. With collapsed oil prices and unfavorable exchange rates, Petrobras has slashed their expenditure plans by 40% from the plans announced a year ago. Recognizing the upstream challenges, the company is now allocating 84% of its budget to E&P compared to 70% in the previous plan. The biggest cut goes to their refining and supply sector, which has seen its budget reduced by 67% compared to last year's plan.