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• Oil ends lower on reported rift in Saudi-Russian alliance as coronavirus feeds demand anxiety
  MarketWatch - Oil futures ended with a loss on Friday, pressured by a reported rift...
  MarketWatch - Oil futures ended with a loss on Friday, pressured by a reported rift in the crude-production alliance between Saudi Arabia and Russia, as concerns about the spread of COVID-19 in China and beyond take a toll on expectations for energy demand.
  
  Prices for the U.S. and global crude benchmarks, however, posted weekly gains, partly supported by efforts by China to stimulate the economy, which eased some concerns over the virus outbreak’s impact on the economy. U.S. government data on Wednesday also revealed a smaller-than-expected weekly rise in domestic crude inventories, along with declines in gasoline and distillate stocks.
  
  West Texas Intermediate crude for April delivery CLJ20,fell 50 cents to settle at $53.38 a barrel, while April Brent crude BRNJ20 lost 81 cents, to end at $58.50 a barrel. WTI tallied a 2% weekly rise, based on the front-month contract, while Brent added 2.1% for the week.
  
  
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• US oil industry expected to cut spending by 10-15% and restructure, Dallas Fed says
  The Dallas Fed said the slump in oil prices and cutback in production growth could lead to a...
  
  
  • The Dallas Fed said the slump in oil prices and cutback in production growth could lead to a 10% to 15% decline in capital spending by energy services companies this year.
  
  
  • Dallas Fed President Rob Kaplan also said this will be a year of restructuring and consolidation for those companies.
  
  
  • Longer term, he said, oil demand will be impacted by the growth in renewables, which could reach a third of oil consumption by 2040.
  
  

  
  The Dallas Federal Reserve, which has the Permian basin in its economic region, expects the oil and gas sector to cut capital spending by 10% to 15% in 2020.
  
  Rob Kaplan, president of the Fed district, said in an essay that the decline in oil production growth will have a substantial impact on the energy service companies. Some have already announced restructurings and layoffs, but he expects to see more of that, and 2020 will be a year of consolidation and cost cutting as well.
  

  
  

  
  

  
  U.S. oil production is expected to grow by 700,000 barrels a day from fourth quarter 2019 to fourth quarter 2020. The forecast assumes a decline of 700,000 barrels a day in non-OPEC production and a drop of the same level by OPEC.
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• Delaware Basin oil production boosts Devon
  Devon Energy has reported oil production increased 28% from the fourth quarter of 2018, to Q4 2019, with upstream...
  Devon Energy has reported oil production increased 28% from the fourth quarter of 2018, to Q4 2019, with upstream revenue in 2019's final quarter growing to $1.0 billion, a 13% increase from Q3 2019, Kallanish Energy reports.
  
  Oil production averaged 160,000 barrels per day and total net production averaged 340,000 oil-equivalent barrels per day (Boe/d) in Q4 2019. The oil production was boosted by strong well productivity and the timing of completions in the Delaware Basin of West Texas/southeast New Mexico, the Oklahoma-based company said.
  
  Devon said it's lowering the top end of its upstream capital guidance by $50 million, to a range of $1.7 billion to $1.85 billion for 2020. It expects capital spending in the Delaware Basin to increase 15% year-on-year and will account for 60% of Devon’s total capital investment in 2020.
  
  Some of that Delaware Basin money will be shifted from the STACK play in Oklahoma, the independent producer said.
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• Permian trio offers ray of hope amid industry gloom
  Permian Basin producers Diamondback Energy, Concho Resources and Devon Energy saw their...
  Permian Basin producers Diamondback Energy, Concho Resources and Devon Energy saw their shares surge Wednesday after reporting better-than-expected fourth-quarter earnings and significantly raising dividends. "The dividend fireworks blaze a bright light in a dark sky for oil and gas stocks," said Mizuho Securities analyst Paul Sankey, calling the development "the first step in the right direction.
  
  Reuters - Full Story
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• A&D Trends: ‘Times Have Changed’
  Hart Energy - Schlumberger...
  
  

  
  
  Hart Energy - Schlumberger Ltd. chairman Mark Papa told an audience at the International Petroleum Technology Conference on Jan. 13 that he expects shale production to grow by just 400,000 barrels per day (bbl/d) in 2020, according to the Journal of Petroleum Technology.
  
  This echoes comments made in November by Centennial Resource Development Inc. CEO Mark Papa, who said at the time, “I now think that 2020 year-over-year oil growth will be roughly 400,000 barrels per day.”
  
  It’s good to see that they agree. Papa’s reasoning, regardless of the corporate hat he’s wearing at any given time, is that shale oil is a finite resource.
  
  

  
  
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