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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
ENERGY
Average US oil prices above 64$/bbl and average natural gas prices above 4.32$/mmbtu are required for drilling to be profitable according to the latest energy survey by the Federal Reserve Bank of Kansas City released on Friday.
- The survey of shale firms suggested an average oil price of 89$/bbl and average natural gas price of 6.13$/mmbtu were needed for a substantial increase in drilling to occur across the fields in which they are active.
- Capital discipline, higher costs, and inflation limited US drillers production growth last year. Nearly 40% of firms reported cost inflation and/or supply chain bottlenecks were the biggest drag on crude oil and natural gas production growth.
- “Drilling and completion costs are continuing to increase while forward commodity prices are decreasing, putting pressure on drilling economics,” according to a respondent of the survey.
- “5+ years of underspending will show up on the production side” added another respondent.
Source: Federal Reserve Bank of Kansas City
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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