Shale oil makes in the US completed first semi-annual period with losses

During the first semi-annual period this year the biggest makers of shale oil in the US have registered a net loss caused by price decline, as follows from the company’s financial reports.

During six months Whiting Petroleum has had a loss of $255.4 million against $260.5 million during the same period last year.

 Net profit of Concho Resources totaled $113 million, while last year the company received a profit of $103 million during the same period. The both companies decreased the profit by one third to $1.1 billion and $950.9 million, respectively.

Negative result of Noble Energy totaled $131 million against $392 million in 2014 and profit decreased as twice to $1.5 billion.

 During this period only Occidental Petroleum received a net profit of $196 million against $2.2 billion.

In November 2014 OPEC refused to reduce oil production and shifted responsibility for stabilization of the market, which by that time decreased by 40%, to the US shale oil makers, reported Interfax.

UAE Energy Minister Sukheili Mohammad al-Mazrui said that the companies are to blame for excess of oil at the market. The OPEC decision to remain the oil production quotas has affected the shale oil production in the US, said OPEC General Secretary Abdalla el-Badri.

In early 2015 analysts of Raiffeisenbank believed that the prices will gradually lead to reduction of shale oil extraction in the US and this will, possibly, balance demand and supply. The experts forecast that oil prices will return to the level, which will allow implementing the current shale projects in the US, but will make development of majority of new ones rather unprofitable. According to their estimates, this level could be in the range between $55.00 and $65.00 per barrel.—0--