Oil production in the US: production costs, growth in volumes, dynamics

If we look at the global oil market globally, we can safely say that it is the US that is the only state in the world that is actively engaged in the extraction of shale raw materials. The rest of the countries have long since abandoned this idea, since they consider it unprofitable and materially expensive. Active oil production in the US began only in 2014 in mid-summer. Earlier, attempts were made to develop fuel deposits in Poland and Hungary, but all of them ended in failure. Great prospects were laid on Ukraine, but all this is only in the draft for 2018.

Shale projects in the USA

The production of shale oil in the United States intensified in 2014. To date, US projects cover about 10% of the world's fuel production. In 2005, on the territory of the state, about 7.5 million barrels of oil were developed , and in 2014 this figure reached 9 million barrels. Against the background of 90 million barrels, which all countries extract together, the significance is very significant. It was this ratio that became the lever that pushed to a sharp reduction in the price of "black gold".

What price of fuel in the oil market ensures the profitability of developing energy in the US?

The cost price of oil production in the United States differs significantly by region. The cost of developing the source is affected by the depth of the fuel and the presence of fresh water. By the beginning of 2005, the average company specializing in the production of shale fuel was able to reach the level without losses at the price of the latter on the market at $ 75 per barrel. A year ago, in order to make oil production in the US profitable, it should not have fallen below $ 57 on the international market. There are regions, for example North Dakota, where the production of fuel remains cost-effective at a price of $ 42 and lower. The production of shale oil in the US in the district of Mackenzie costs only 24 dollars. If you bring all the indicators together, it becomes obvious that the oil segment of America is able to withstand and not such a drawdown in the international market. No matter how the situation develops, oil developers have their 10% of the cost of each barrel. Confidence is attached to the fact that the cost of "black gold" does not include taxes and excises, which in other countries form about 60% of the base price. Why so? It's simple, in the US taxes in the energy sector are not charged.

What accompanies the "slate revolution"?

The slate revolution on the territory of America has good prospects. This is due primarily to the fact that oil production in the US is constantly cheaper. This is accompanied not only by the development of new fields, but also by the introduction of new technologies into the process of fuel production. According to preliminary estimates, in the near future the expenditure of funds for servicing one well will be reduced by about 40%. The growing dynamics of oil production in the US is conditioned by the specifics of the legislation. Companies operating in this direction are not taxed, since until recently the industry was not considered promising. The market is dominated by small companies that are aimed at increasing their income and searching for methods to rationalize production. They independently invest in the development of the direction.

Projections for the future

The volume of oil production in the United States in 2015-2016, according to analysts' forecasts, will only increase. Even a drop in prices in the world market by about 60% will not affect the situation and prospects. Energy short-term forecast of one of the largest agencies of the country Short-Term Energy Outlook is very optimistic. He talks about the intention of the state to beat their own records. The maximum oil production in the US was recorded in 1970 at 9.6 million barrels. EIA confidently declares that it is worth waiting for an increase in the volume of fuel production by 600 thousand tons by the middle of 2015, and by early 2016 - by 200 thousand barrels per day.

What do the oil magnates count on?

Despite the fact that oil production in the US is underway, opinions about future prospects have been divided among the owners of oil companies. Some firms temporarily stopped the development of new fields and suspended research, others are optimistic and confident about the future, counting on the restoration of the cost of fuel in the market no less than up to a figure of $ 100.

A bright future draws the fact that America intends to get out of the world's oil dependency. If in 2005 the country depended on oil supply from suppliers by 60%, then by 2011 this indicator was reduced to 42%. The trend has not changed today, but on the contrary - has intensified. Manufacturers can safely rely on the demand for oil within the state. Even if it is not possible to sell fuel on the international market, it will go under the hammer in the domestic market of the country.

What do analysts say?

According to analysts, in 2015 the cost of Brent oil will stop at $ 58 per barrel. The forecast for 2016 is even more optimistic. When the cost of oil production in the United States is reduced by one-third, its price in the market will reach $ 75. The WTI brand will cost $ 55 and 72, respectively. Experts of the oil market agree that the cost of "black gold" by now is strongly underestimated. In the next few years, the price will not be able to reach $ 100. This scenario can be considered with a delay of a decade. Growing oil production in the US will not be able to block demand. The number of technologies that require fuel is systematically increasing. The temporary decline in prices is associated with stagnation in the development of the economy of most countries. As soon as the situation is normalized, not only will the dollar limit be reached, but the 100-dollar limit will probably be broken.

USA in the oil market

The US feels confident in the global market and even attempts by OPEC member countries to drive out the competitor from the niche have failed. As demand decreases, which was formerly formed in much of America, the supply is growing. As a result, the price of fuel falls. The situation can be called attempts to knock out weak players from the trade. Here it is worth noting not only the growth of oil production in the United States, but also the geopolitical situation. On the territory of the state more favorable and free conditions for doing business in the energy segment. Small players, and most of them, have their hands untied. It is loyalty on the part of the government that allows the state to stand on its own feet even in such difficult times. The US influence on the situation is getting stronger also thanks to a systematically increasing stock of "black gold".

Against the backdrop of world states, oil production in the United States was a significant breakthrough. The price chart visually shows that the state has completely redesigned the oil international market. For the first time in many years, the OPEC member countries and Russia have a worthy competitor. If earlier states acted in their own interests and made decisions taking into account only their own benefits, today the policy will have to be completely revised. This is the only way to balance and stabilize the oil segment.

Confident Rear Services

America has not just rushed into the oil market, it is steadily increasing its rear. Thus, commercial oil reserves correspond to the volume of net import to the territory of the state for 164 days. In December 2013 this indicator was equal to 171 days, and in 2007 on the eve of the crisis - 80 days. Import for Canada and Mexico is not included in this value. Consequently, the indicator also increases to a value of 279 days. And if you take into account not only commercial, but also strategic reserves, the figure will automatically be equal to 450 days. It is a luxurious protective buffer, which will save the country's economy even in case of disruptions in supplies. He could also trigger a drop in the cost of oil on the world market, well below the actual figure of $ 47 in the next few months. Slowdown predictions for the middle of the spring of 2015.