Page 16 - MEOG Week 25

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us producers cautiously restoring output companies saying that it will start to restore
The relative stability of oil prices, with West some of its output in response to current crude
Texas Intermediate (WTI) above $40 per barrel, prices. The company said it expected to bring
is compelling at least some US producers to start back around 20% of its shut-in production in
restoring some of the output they have curtailed July.
since March. The return of production is not limited to
Analysts are estimating that up to 500,000 shale plays. ConocoPhillips – which has both
bpd of US shale production – around a quarter shale and conventional operations – has also
of what has been shut in since the downturn said it is considering restoring some of its cur-
started – could return to the market by the end tailed volumes, which account for about a third
of June. of its production, over the next few months.
“With prices where they are now, if they This includes a plan to restore 100,000 bpd of
stay above $30 [per barrel], I wouldn’t expect shut-in production in Alaska by July.
any significant curtailments from us in Q3 or As US production is being restored, how-
beyond,” Devon Energy’s CEO, David hager, ever, there are warnings that this could com-
said at a JP Morgan energy conference last plicate global efforts, including those by the
week. OPEC+ group, to stabilise crude prices by
however, oil prices of around $40 per barrel restricting output.
are anticipated to continue acting as a brake on
new drilling, even as some existing production If you’d like to read more about the key events shaping
is restored. the North American oil and gas sector then please click
Continental Resources is also among the here for Newsbase’s NorthAmOil Monitor.™

P16 www. NEWSBASE .com Week 25 24•June•2020