Shale Oil

The country has announced it intends to raise the minimum price of the so-called "criollo barrel" in the coming days in an attempt to support the local oil industry amid the ongoing price rout caused by the COVID-19 pandemic.

Among the major shale formations in the country, the Bakken the most productive field in North Dakota is facing the most hardship in its history due to the global consumption collapse caused by the COVID-19 contagion.

The Anglo-Dutch energy major has agreed to sell its Appalachia shale gas assets, which currently produce 250MM scf/d (7MM Nm3/d), to National Fuel Gas Co.

To protect the ongoing development of the Vaca Muerta shale play in the country, the Argentine government is expected to issue a decree to set local oil prices (known as the

According to EIA data, 600K b/d in US crude production was taken offline in the week ending April 3 as crude stocks rose by 15.0MM bbl and supply of refined product dropped by 19%.

Amid the ongoing price rout due to growing concerns over demand destruction caused by COVID-19, US crude production is expected to see a significant retreat over the next year as companies reduce spending to cope with this low-price environment.

The ongoing price rout that has led producers to cut investments massively in US shale plays is expected to significantly derail investment in Argentina's Vaca Muerta shale play.

According to US oil major Chevron, the company's oil and gas production from the Permian basin is expected to be 125K boe/d, or 20%, below prior guidance.

According to EIA data, US shale oil output is set to rise about 18.0K b/d month-on-month to a record 9.08MM b/d in April as output growth from the Permian Basin will offset production declines from all the other major US shale plays.

Despite output from US shale production projected to only climb "modestly" this year after increasing 1.2MM b/d in 2019 to a record 12.2MM b/d, analysts believe that shale companies may go bankrupt if OPEC does not proceed with further production cuts.