In a less than half a month, the international oil price has fallen by more than 20%. On January 14, as of morning paper reporter went to press, brent crude oil futures price is $30.22 a barrel, west Texas intermediate (WTI) price at $30.77 a barrel. Among them, brent plate is briefly fell below $30, to $29.89 a barrel, the lowest in 12 years.
In the past year, in response to falling oil prices all the way, the oil industry manufacturers to take the way to reduce costs and improve efficiency.
In the United States, over the past year the land rig drilling costs fell by 32%, and by hydraulic fracturing makes the oil well production costs fell by 38%. Britain's BP to press the capital spending in 2015 to $19 billion, $26 billion is far less than the original.
Even so, the success through 2016, is still a question mark. After all, reduce the cost of amplitude is limited; Improve the efficiency of oil field output means the increased cost of oil clothing; And oil and gas industry has been based on capital investment as the leading, indefinite cut capital spending, will damage the operating income.
Energy research firm wood Mackenzie said, on average, brent crude oil prices to reach $66 a barrel in 2016, the cash flow to make major listed oil company covering capital spending, interest payments and dividends, the threshold is lower than $81 a barrel in 2015.
According to Norwegian Rystad energy consulting firm, Canada, Norway, venezuela, Russia, Qatar and other oil producers profit has far higher than international prices, this also means that the crude oil production in these countries have been in the red.
What is more worrying is that, if oil price below $30 for a long time, global oil production is still remaining four profitable countries, Iran, Iraq, Saudi Arabia and Kuwait.
It is worth mentioning that, according to an agreement in Vienna in 2015, the United Nations economic sanctions against Iran may soon be cancelled. Once the economic sanctions lifted, Iran's oil exports will soar. Then, the global oil market oversupply situation will be worse.
Although the low cost of oil is the world's second country, but Saudi domestic huge fiscal deficits, has forced its intended to sell its state-owned oil companies.
Had been with Saudi Arabia and other Middle East oil producer price war of shale oil producers in the United States, also have to gradually reduce their input. American oil company baker hughes, according to data released by January 8, 2016, the week American oil drilling fewer active 20 to 516, for the past eight weeks, 7 weeks decreased, hitting the lowest since April 2010.
In addition to shut down the well, energy related loan exposure to the us Banks also face a bitter day. Some U.S. Banks will need to increase energy loan provisions to cover potential losses.