Conoco "All In" on Shale | Russell T. Rudy Energy LLC
ConocoPhillips, the third largest oil producer in the U. S., is increasing its investment in North American shale plays by 50% over the next three years, according to a recent article in “World Oil”. While this might seem counter to prevailing trends in the industry, the company is doing so for a number of reasons.
ConocoPhillips, which was one of the first operators to announce spending cuts when prices started falling, aims to reduce spending by over $13 billion over a three year period. Also, with other major projects, such as those in Australia, winding down, capital will now be available for investments in shale. The consensus among industry analysts is that the company is the lowest cost producer among a cohort of 20 similar sized companies. As Chairman and CEO Ryan Lance has said “We can win in a low price environment.”
ConocoPhillips remains profitable at the current price of $50/barrel and intends to exploit this advantage. If all goes according to plan, the company will increase production by 6.3% to 1.7 million barrels per day by 2017.
To read the article in its entirety, please go to http://www.worldoil.com/news/2015/4/08/iran-oil-deal-to-fan-opec-discord-as-saudis-defend-market-share .
