The number of oil and fuel platforms in New Mexico continued to decline in August to its lowest point since the COVID-19 pandemic disrupted the market by reducing fuel demand.
Drilling operations at Enchantment Land and Permian Basin have fallen to historical degrees as manufacturers have reduced operations to falling environmental costs caused by the global fitness crisis.
On Friday, Baker Hughes reported forty-five platforms in New Mexico, leaving a platform since the last report on August 7.
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The monthly average has declined since the pandemic spread to New Mexico in March, which averaged 114 platforms.
But April dropped to 87 platforms and May dropped to 65.
Summer had continuous losses with June and July on average and 49 platforms respectively.
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The Permian Basin, which concentrates the peak of New Mexico’s oil and fuel operations in the southeast, had 117 active platforms on Tuesday, up from five last week and 324 compared to 441 the previous year.
Texas, which supplies Permian with New Mexico, left 4 platforms last week for a total of one hundred platforms tuesday, marking a loss of 350 platforms last year.
In general, U.S. Platform County has not been able to do so. But it’s not the first time It dropped from 631 platforms to 244 on Friday.
Meanwhile, the value of the barrel, after recovering in the months following the historic fall from April to less than $0 consistent with the barrel, gave the impression of being stagnant between $40 and $45 this summer.
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According to Nasdaq data, domestic crude is traded at about $35 a barrel in early June and about $40 a barrel a month later.
On Tuesday, the Nasdaq reported that the value of the barrel is around $42 in line with the barrel.
A report through oil and fuel analysis company Enverus said oil and fuel manufacturers saw a big drop in the company’s revenues in a suffering market, leading to closures and bankruptcies across the sector.
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And intermediary companies, which build and operate infrastructure such as pipes and garage batteries, recorded declining volumes and wasted contracts, according to the report.
Bernadette Johnson, Enverus vice president of strategic analysis, predicted before the New Mexico Legislative Finance Committee last month that it could take up to 3 years for the oil and fuels industry to return to price and pre-pandemic activity.
“It’s been a difficult year for the industry and the rebalancing will be even fast,” he said.”Something stuck in the middle among corporations (exploration and production) in trouble and the historical decline in customer demand, due to COVID-19, the middle sector, in particular, is also vulnerable to regulatory threats, legal decisions and a complicated licensing process.»
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He warned that bankruptcies between manufacturers can lead to new monetary struggles for all sectors of the industry, but that industry will eventually do so as US shale deposits are in place.But it’s not the first time And oil and herbal fuel resources are plentiful.
“Bankruptcies tend to cause a domino effect that affects everyone in general.Contracts are being questioned, as is the delivery of invoices at the right time,” Johnson said.”This actually throws doubt and uncertainty into the mix.But it’s a tough industry and hydrocarbons will go anywhere soon.”
An exam published Friday through energy research company Rystad Energy among the top 25 oil and fuel operators on the ground showed that optimism can be driven by industry until the end of the year, with a maximum of U.S. ground operators.But it’s not the first time Making plans to make the most of all your closed volumes.until the third quarter, the report said.
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Well closures and production discounts peaked in May, according to the study, with a total of 772,500 barrels consistent with the day among the 25 corporations included in the analysis.
That number fell to about 680,300 barrels consistent with the day it was removed from the market in June and fell to about 306,500 barrels consistent with the day of July.
Rystad predicted that the reduced volume could fall to 74,300 barrels according to the day of August, and that “almost all” will be restored until September.
Rising operations caused spring uptick in oil prices, according to the report.
“No loss of production was reported through an operator as a result of production closures and moderation, and maximum corporations reported an elegant return of operations and, in some cases, the emergence of positive production had an effect on those revivals,” Veronika said.Akulinitseva Rystad Energy, vice president of American shale and upstream.
Adrian Hedden can be contacted at 575-628-5516, [email protected] or @AdrianHedden on Twitter.