Stable outlook for U.S. oil producers at $45 a barrel
Most U.S. oil companies will be able to produce more oil while reducing operating costs at prices of $45 a barrel or so, Fitch Ratings said July 19. While the price for West Texas Intermediate, the U.S. benchmark for crude oil, has fallen from a 2017 high of $54.45 on February 23, producers with solid credit ratings can compensate for the lower price now through further gains in efficiency and lower costs per barrel, Fitch said. WTI closed at $46.02 on July 18. “Most U.S. (exploration and production) companies will continue to see production profile gains and lower costs per barrel of oil equivalent through a combination of reduced drilling days, improved well bore placement, expanded multi-well pad drilling, longer laterals and higher intensity completions, which should help offset market price pressures,” Dino Kritikos, senior director for U.S. Corporates at…
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