The era of low tie costs in the rock correction in the United States may soon end, and it may lead a new era of high costs and the basic inventory depleted to reduce the impact in America in meeting the growth of global demand.
This is the latest experience from Enverus Intelligence Research, which said in a new report this week that the marginal cost of US oil supplies is expected to increase from $ 70 per barrels at the present time, to $ 95 a barrel by the mid -thirties. The increase in the cost of $ 15 per barrel of costs will be driven by the shift from the stock that has proven economically to confidence to more expensive sites as the main stock is exhausted, according to Enverus Intelligence Research (EIR).
High cost, global influence faded
The Enverus report says that the depletion of the basic oil and gas stockpiles in North America will have effects on global energy markets, especially the American ability to meet global demand.
“The dominance of North America to supply the growth of global demand for oil demand is dwindling,” Alex Liopogvich, the director of Eir, said in a statement.
“During the next decade, its contribution to consumption growth is expected to decrease to less than 50 % – a blatant contradiction with the previous ten years when it has provided more than 100 %.”
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However, the Pramean Basin in West Texas, New Mexico, and Canadian oil sand and will remain the least sources in North America for developmental oil supplies, as Enverus believed.
The oil sand will benefit from the strong Canadian Western prices (WCS) and amazing infrastructure costs, and can open the additional infrastructure capacity of ready -made meals to Canadian oil production estimates. Currently, Enverus expects oil production in Canada to rise by 450,000 barrels per day (BPD) by 2030, up to the expected record for 2025.
However, the American rock patch will have to face growth curves in the flavored of moving forward amid oil prices close to the current Brekevens and remove the basic stock, making companies changing investment strategies.
“Since the main shale oil stock in the United States is draining, the industry enters a new era with higher costs and more complicated. This shift will reshape the cost curve and redefine investment strategies throughout the continent,” said Ljubojevic of Enverus.
The United States, the oil rock slows the pits
Amid the drop in oil prices this year, the rock correction in the United States is in waiting and vision, and the price decrease will be installed with the minimum adjustments to the strategies. American oil producers reduce capital spending budgets, relying on efficiency gains from the current drilling activity to maintain production levels.
American oil production is increasing due to the delay between oil and drilling slices, but adult rock producers are already claiming the peak of oil production, despite the best efforts of the Trump administration to support the fossil fuel industry.
For example, efficiency gains, in addition to the synergy of Endeavor and low service costs, allowed its 2025 capital budget to reduce $ 100 million, or about 3 %, from the previous center point, to 3.4 – 3.6 billion dollars.
“With the continued volatility and uncertainty, we do not see any convincing reason to increase the activity this year,” said CEO Kaes Van’t Hof for shareholders in a letter in early August.
Since it has reached the peak, most likely, the oil production in the United States is likely to have reached its climax, probably, the levels of activity in the 48 are probably a decrease, “since the Q1 message to the shareholders,” continues to believe that at current oil prices, the levels of activity in the 48 are less. “
Executive managers of producers and services services in the latest poll in Dallas Virus, which was published this week, said that high costs and constant uncertainty, including American commercial policies, have led to another decrease in oil and gas activity in Barryan.
In the poll, most executives estimate, 57 %, that organizational changes since the Trump administration in January 2025 have reduced the costs of their companies tie for new wells with less than one dollar per barrel. Additional discounts of 25 % range between $ 1 and $ 1.99 a barrel, while none of the large E&P companies have seen more than $ 5 per barrel to reduce the cost of executives.
Moreover, most executives have informed that they were late in investment decisions in response to the increasing certainty about the price of oil and/or the cost of oil production.
“The administration is paying $ 40 for raw oil for the barrel, and with definitions of foreign tube goods, [input] Prices rise, and drilling will disappear. One of the E& P executives commented on the survey again in the oil industry again.
Another one blames both the previous and current departments to break American rock works.
“What was once the most dynamic energy engine in the world may have been subjected to political hostility and economic ignorance,” said CEO.
They added that the previous administration distorted the industry and chanted when Wall Street moved away from the oil rock, but they indicated that “now the current administration ends the task.”
The CEO said: “The US Energy Ministry, who tells them what they want to hear instead of difficult facts, is guided by a little understanding of the rock economy.”
“Instead of supporting local production, they have effectively agreed with OPEC – using supply tactics to pay prices below economic dolts, and kneeling American producers in this process.”
The monotheism of the rock correction was fed through the breakdown of capital. This monotheism, in turn, pushes independents and businessmen who once identified the Oilic rock revolution, according to the CEO.
“In their place, a handful of giants is now dominating but at the expense of losing massive jobs and destroying the innovative culture and the risks that made the American rock industry great.”
Written by Tsfitana Paraskova for OilPrice.com
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