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Category: Spending

IEA: North American cuts to bolster crude price

February 13, 2015 Posted by Chris Wysong

The decrease in North American shale spending and activity could lead to an increase in global crude prices. Collin Eaton of FuelFix reports. IEA: North American cuts to bolster crude price By: Collin Eaton (FuelFix) HOUSTON The worlds foremost seers of future oil prices are adjusting their calculations to include this years brutal cost-cutting in North Americas shale plays. In a forecast Tuesday, the Paris-based International Energy Agency said upstream budget cuts and a shrinking number of active U.S. land rigs could bolster the price of oil by inciting greater global demand and choking off the rapid expansion of crude supplies in North America and elsewhere outside the Organization of the Petroleum Exporting Countries. These oil fields from Texas to North Dakota have been the biggest sources of a global glut in crude supplies, which has cut petroleum prices in half since June. Barring any unexpected supply disruption or major, energy-related change in policy, the market rebalancing

Posted in Shale, Spending, OilPrice
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