By Rakesh Upadhyay, for Oilprice.com. – January 12
The U.S. shale oil recovery is now gaining momentum, and for the first
time since September 2014, the U.S. oil and gas extraction and support
services jobs increased by 3,300 in November, according to the U.S.
Bureau of Labor Statistics (BLS) data. Though the increase is small
compared to the whopping 155,000 job cuts over the past two years, the
increase is an indication that the cycle in the industry is finally
starting to swing in another direction. The shale oil companies should
thank their OPEC counterparts—their talks to cut production boosted oil
prices by about 25 percent since mid-November. The shale oil drillers
have taken advantage of the higher crude oil prices to hedge for 2017.
Pioneer, one of the better run shale oil producers, has hedged 75
percent of its 2017 output at an average price of $50 per barrel. This
recovery in shale oil is gaining a foothold, and is likely
to continue even in 2017 and 2018, barring any black swan event. The
total oil rig count has gone up to 529 in the week to January 6, from
the lows of 316 rigs in May. Out of the total addition of 213 rigs, 104
rigs have been added since September 2016, the most since the
first-quarter of 2014, when oil prices were trading above $100 per
barrel. Read on...http://www.theenergycollective.com/staffjam/2396201/u-s-shale-jobs-are-coming-back
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