US companies for the extraction of shale oil continue to reduce budgets

Following Anadarko Petroleum Corp, the other two major oil shale US companies, Whiting Petroleum Corp, and Hess Corp, have recently announced the plans to cut down on their budgets. Whiting Petroleum Corp plans to cut funds by 14%, while Hess Corp so far only by 4%. The reason for this was the long-term retention of the price of black gold at a low level even in spite of all the initiatives of OPEC and the war in the Middle East.

First of all, budget cutback are reflected in the reduction in the number of operating drilling rigs for the extraction of shale oil. So, according to Baker Hughes, a service company specializing in exploration, drilling and maintaining of oil fields, by the end of July 2017 the number of oil rigs in shale oil, like the dynamics of the increase in their quantity in America, had fallen to the minimum values as ​​of the previous year.

With all attempts to reduce the cost of producing shale oil, it still far exceeds the ordinary oil (especially in Libya, Iraq, Iran, Saudi Arabia), which makes its producers particularly vulnerable during the severe drop in world prices for black gold. At the moment, the price of shale oil production in the US is about $ 23-24 per barrel, for comparison, simple oil in the United States costs $ 20-21, in Russia $ 19, in Iraq $ 10.5, in Saudi Arabia – less than $9.