Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

Canadian O&G better than U.S. >2020

[George98]

Permian firms must drill more just to maintain current production - report

Dec. 12, 2019 6:55 PM ET |About: Chevron Corporation (CVX)|By: Carl Surran, SA News Editor

Permian Basin oil and gas producers must drill substantially more wells just to maintain current production levels and even more to expand output, according to a new report from IHS Markit.

The base decline rate, or the rate at which production will fall through the year, has "increased dramatically" for the Permian's 150K-plus producing oil and gas wells, the report says.

Production from the Permian Basin reached 3.8M bbl/day at the start of this year, 1M bbl/day higher than the year before, but the report forecasts base production will decline by 40%, or ~1.5M bbl/day, by the end of 2019.

IHS expects the declines to continue to accelerate, posing a challenge for companies with cash constraints just to keep production flat.

[EstevanOutsider]

Agreed!  These shale companies can't even succeed at $60 WTI.  Once Line 3 and Transmountain are built, Canadian oil will be at a significantly reduced discount (probably most grades) and we can really shine like never before. I added more Husky today.