EIA: US Shale Oil Output To Fall In May, First Drop In 4 Years

The rapid and aggressive response by oil and gas companies to low oil prices has stabilized the sector. According to Wood Mackenzie, the price required for companies to be cash flow neutral in 2015 has dropped by over $20/bbl to $72/bbl.

The Edinburgh-based consultancy believes further cuts would be required to achieve cash flow neutrality if oil prices remain around current levels. For some companies, this will mean selling assets, others may suspend or limit dividend and buyback programs.

Source: Reuters – Edinburgh – April 13, 2015

Archive