The weakness of oil prices will encourage a decline in the drilling activity in the United States, notes Warren Patterson, Ing raw material expert.
Producers' coverage can protect certain oil producers
“According to the Dallas Federal Reserve Energy Survey, oil producers need, on average, of $ 65 US / Bbl to bring a new well in a profitable manner. With the intermediate trade of West Texas (WTI) closer to the middle of $ 50 in the United States, there is little incentive to the strong.
“The number of US oil platforms is 479, down compared to a peak of 489 in early April. The wells also seem to be a lower trend, reflected in a lower number of fractures. In addition, if the drilling activity holds, it is not guaranteed to result in production.
“A slowdown in the American petroleum industry also has ramifications for the American supply of natural gas, given that a large quantity of this offer is associated with production. This could be a problem, in particular given the demand for stronger gas that we will see with an increase in the American export capacity of LNG.”
