Single-digit oil prices and unprecedented demand destruction are leading to production shut-ins all over the planet, but US shale and Canadian crude are the most affected.
As the oil war and coronavirus demand destruction rage on, WTI crude prices briefly dipped below $20 per barrel, but many prices aren’t even fetching $20 per barrel as they are struggling to find buyers for their crude. Prices in Oklahoma, Colorado, Kansas, and Louisiana, for instance, have dropped significantly over the last week, with benchmark prices such as Louisiana Light falling to $5.85 and Oklahoma Sweet falling to $16.50 on Monday, while prices in the cowboy state, Wyoming, have fallen to $1.25.
The deepest discounts in crude are often found in more remote areas with little access to pipeline and export infrastructure, and these are also often the areas where, once shut-in, production isn’t likely to be restarted anytime soon.
So-called stripper wells made up about 10 percent of total US crude output back in 2015, and after a round of serious cost-cutting, there’s not much left to cut for these tiny producers, most of whom are now losing money on every barrel they produce.
Larger shale producers such as Pioneer, Exxon, and Chevron can bring back production relatively easy as we’ve seen in the past, but smaller producers are more likely to either shut-in production or face bankruptcy. The Houston Chronicle cites energy data provider Enverus as saying that stripper wells now make up about 6 percent of total US oil production, or about 850,000 bpd, and that about 500,000 bpd or even more could be at stake with oil prices in the teens or even lower.
The question is then, how much production will bigger oil producers shut-in, and where will most well shut-ins occur?
Even before oil prices crashed into the $20-range, Canadian, Bakken, and SCOOP/STACK producers were struggling to churn out a profit, and as prices of some blends fall below $10 per barrel, these areas are most likely to see the first major well shut-ins. Canadian oil giant Suncor has already shut-in production at its Fort Hills heavy crude operation, and other producers are set to follow suit. Matt Murphy of Tudor Pickering Holt & Co. thinks that some 20 percent of Canada’s thermal bitumen production could be shut-in within the next couple of months, equating to some 340,000 bpd. In the meantime, Canada’s rig count has fallen by 44 rigs in just one week as producers are starting to focus on the lowest cost wells in their portfolio.
In the heart of the US shale industry, producers such as Pioneer Natural Resources and Parsley Energy have asked the Texas Railroad Commission to consider formal output cuts. Pioneer CEO Sheffield and Parsley CEO Gallagher sent a letter to the Commission on Monday to officially ask for pro-rationing orders for the entire state of Texas, something that has not been done since the 1970s.
Pioneer CEO Sheffield states that his company received requests from pipeline operators to stop the flow of crude and shut-in production, saying that he fears a "total decimation" of the industry if action is not taken immediately.
Total global production then is set to decline this year as a result of the coronavirus crisis. In a note on Tuesday, IHS Markit said that the total number of shut-in barrels could reach 10 million bpd between April and June as storage is filling up at an unprecedented pace.
The declines, however, are not equally distributed, with OPEC producers such as Saudi Arabia, the UAE and possibly Iraq set to boost output by 4 million bpd this year according to Energy Aspects, highlighting the significant production crash in non-OPEC production countries.
Is it all bad news then? For now, it seems like the industry is set for a huge round of consolidation, spending cuts and well shut-ins, but the producers that will survive this brutal supply/demand crisis will likely see higher prices as a result of a possible oil shortage later this decade according to investment bank Goldman Sachs.
Spanish authorities have confirmed that the total number of coronavirus infections in the country has surpassed 100,000 while the daily death toll reached over 800 fatalities for the fifth consecutive day.
Spanish authorities have confirmed that the total number of coronavirus infections in the country has surpassed 100,000 while the daily death toll reached over 800 fatalities for the fifth consecutive day.
Organizers of Tokyo 2020 left the Olympic flame in the hands of Fukushima Prefecture on Wednesday. It will be there on display in a lantern for the next month after the Games were postponed for a year due to the coronavirus outbreak.
The handover took place at a subdued ceremony at the J-Village National Training Center in Fukushima, which was originally set to be the starting point of the torch relay.
Only Tokyo 2020 COO Yukihiko Nunomura made the trip north from the organising committee, Reuters said. “This is a [symbol of] hope for the world to celebrate the best of human beings through Tokyo 2020 after we overcome the serious coronavirus,” Nunomura said.
The flame will stay on display in the J-Village until April 30 before being moved to Tokyo. Organizers have not yet decided where in the Japanese capital it will be displayed.
Jon "Bones" Jones has made his first public comment following his involvement in a DWI and firearms incident in Albuquerque on Sunday, March 26.
The UFC light heavyweight champion attended a hearing and issued a guilty plea to DWI and firearms charges, and made a deal with prosecutors that saw him handed one year of supervised probation, 96 hours of community custody, 48 hours of community service and at least 90 days of therapy, which will start off being held over video call due to the current coronavirus shutdown.
The Bernalillo District Attorney's office issued a statement following the verdict, stating that further indiscretions from Jones during the terms of his deal will see him thrown in jail.
"Jon Jones pleaded guilty to his second DWI. The incident happened on March 26, 2020 outside a downtown Albuquerque nightclub, just two months after his probation ended following an incident at an Albuquerque strip club," he said.
"Jones took responsibility for his actions early on in the case and in doing so the state agreed to 1 year supervised probation.
"Normally, the State would be requesting a pre-sentencing report and a recommendation to Substance Recovery Court. However, due to COVID-19, it is not clear the program can accept anyone at this time.
"It is also the reason that we are agreeing to the 4 days on CCP with 90 days for turn-in (the metropolitan jail just reported a new case of COVID-19). Jones is still required to complete a minimum of 90 day outpatient treatment, maximum fines and fees, community service, and all other requirements of reporting to probation.
"His attorney and Mr. Jones have been made aware that if he fails to do this, the State will seek to impose the balance of any jail time without regard for any exceptional circumstances."
Jones later issued a statement via his management team, saying, "While we all work to understand and cope with stress and uncertainties surrounding the current state of our world, I want to express how truly disappointed I am that I have become the source of a negative headline again, especially during these trying times.
"I am disappointed for letting down the people I care about the most – my family, friends and my fans.
"This morning I entered into a plea deal with the Albuquerque DA’s office. I accept full responsibility for my actions, and I know that I have some personal work to do to which involves the unhealthy relationship I have with alcohol.
"I have dedicated so much time and energy to improve my community, and I will not allow this personal setback to hinder my work within the community when we need it most.
"I truly appreciate the support I have received from the community of Albuquerque and all my fans around the world. I very much look forward to putting this behind me. Thank you all for your continued love and support and please take care of yourselves."
The coronavirus has put a damper on April Fools’ Day this year, with calls not to spread fake news about the pandemic, and people on social media urging others not to joke about Covid-19 or its possible cures.
On Wednesday, the Indian government used the hashtag #AprilFools to urge everyone not to “make #Coronavirus a joke” and stay vigilant against false rumors about the rapidly-spreading disease.
Earlier, acting in a similar vein, the Delhi police sent out a tweet asking people not to use April Fools’ Day to disseminate falsehoods (but at least did so in a humorous manner).
We're vigilant & everywhere!
Strict legal action will be taken against any attempt to spread rumours on social media in the guise of #AprilFoolsDay
April Fools Day की आड़ में सोशल मीडिया पर अफवाहों को फैलाने कि कोशिश ना करें इस तरह की गतिविधियों से सख्ती से निपटा जाएगा pic.twitter.com/ksgxtX36Yl
Not only in India, but all over the world, Twitter users say April Fools’ Day should be “cancelled” this year because it’s “not a time to joke”in the middle of a pandemic.
I told my children that #AprilFools was cancelled this year because there is nothing funny about what is happening. They were allowed to tell each other the pranks they planned to play. We all had a big laugh and now there is harmony in my house 😇 Hello April 🙏
“Keep your jokes to yourself because this whole year has been one already. Many of us just wanna survive,” one person wrote. “No #AprilFools jokes. People are going through enough. It won’t go over well,” another said.
I don’t know who needs to hear this, but this April Fools day do NOT make jokes about having COVID-19 or make up fakes news about the pandemic. It’s not funny or a good prank.
“April Fools Day is CANCELLED this year,” Jamaican politician Chris Tufton wrote, adding that the spread of false information “leads to public panic and unnecessary anxiety.”
April Fools Day is CANCELLED this year.
For any Covid-19 updates you receive please fact check with the relevant authorities before sharing. Spreading false messages leads to public panic and unnecessary anxiety especially as we try to overcome this national crisis. pic.twitter.com/zdnrDs0v7h
Overall, around 860,800 people have tested positive for Covid-19 worldwide, and more than 42,300 have died, according to data compiled by Johns Hopkins University.
The coronavirus has put a damper on April Fools’ Day this year, with calls not to spread fake news about the pandemic, and people on social media urging others not to joke about Covid-19 or its possible cures.
On Wednesday, the Indian government used the hashtag #AprilFools to urge everyone not to “make #Coronavirus a joke” and stay vigilant against false rumors about the rapidly-spreading disease.
Earlier, acting in a similar vein, the Delhi police sent out a tweet asking people not to use April Fools’ Day to disseminate falsehoods (but at least did so in a humorous manner).
We're vigilant & everywhere!
Strict legal action will be taken against any attempt to spread rumours on social media in the guise of #AprilFoolsDay
April Fools Day की आड़ में सोशल मीडिया पर अफवाहों को फैलाने कि कोशिश ना करें इस तरह की गतिविधियों से सख्ती से निपटा जाएगा pic.twitter.com/ksgxtX36Yl
Not only in India, but all over the world, Twitter users say April Fools’ Day should be “cancelled” this year because it’s “not a time to joke”in the middle of a pandemic.
I told my children that #AprilFools was cancelled this year because there is nothing funny about what is happening. They were allowed to tell each other the pranks they planned to play. We all had a big laugh and now there is harmony in my house 😇 Hello April 🙏
“Keep your jokes to yourself because this whole year has been one already. Many of us just wanna survive,” one person wrote. “No #AprilFools jokes. People are going through enough. It won’t go over well,” another said.
I don’t know who needs to hear this, but this April Fools day do NOT make jokes about having COVID-19 or make up fakes news about the pandemic. It’s not funny or a good prank.
“April Fools Day is CANCELLED this year,” Jamaican politician Chris Tufton wrote, adding that the spread of false information “leads to public panic and unnecessary anxiety.”
April Fools Day is CANCELLED this year.
For any Covid-19 updates you receive please fact check with the relevant authorities before sharing. Spreading false messages leads to public panic and unnecessary anxiety especially as we try to overcome this national crisis. pic.twitter.com/zdnrDs0v7h
Overall, around 860,800 people have tested positive for Covid-19 worldwide, and more than 42,300 have died, according to data compiled by Johns Hopkins University.
The football world is mourning the passing of former Olympique Marseille president Pape Diouf, described by a former player as a "guardian angel", at the age of 68 after contracting Covid-19.
Diouf died in his native Senegal on Tuesday after falling ill with coronavirus, the same day the French club announced he had been suffering with the virus.
Diouf began his career as a journalist before becoming an agent, handling many players of Marseille's great UEFA Champions League-winning side of 1993, including Basile Boli.
Pape a été mon ange gardien pendant toute ma carrière, un très bel ami.
He was also involved with World Cup winner Marcel Desailly as well as former Premier League players William Gallas, Samir Nasri and Didier Drogba.
Boli paid tribute to his guardian angel on Twitter: "Pape has been my guardian angel throughout my career, a very fine friend. His unique voice will be forever missed."
Ligue I also offered their condolences online, along with Marseille who hailed one of the "great craftsmen of the club".
L’Olympique de Marseille a appris avec beaucoup de tristesse le décès de Pape Diouf.
Pape restera à jamais dans le cœur des Marseillais comme l’un des grands artisans de l’histoire du club.
"Olympique de Marseille learned with great sadness of the death of Pape Diouf. Pope will remain forever in the hearts of Marseillais as one of the great craftsmen of the history of the club. Our condolences to his family and loved ones," they tweeted.
Ligue I said in a statement: “The Ligue de Football Professionnel has learned this evening with great sadness of the death of Pape Diouf at the age of 68. Journalist, agent, president of Olympique de Marseille from 2005 to 2009, Pape Diouf dedicated his whole life in service of football."
It's with great sadness that we have learned of the passing of former @OM_English president Pape Diouf. We offer our condolences to those close to him in this difficult time. pic.twitter.com/jSc9J55rwy
“A member of the LFP administrative council from September 2007 to June 2009, Pape Diouf will be remembered as a charismatic and passionate director.
“In this moment of immense sadness for French football, the LFP offers its condolences to his family and those close to him, and to Olympique de Marseille.”
France represents one of the hardest-hit European countries during the pandemic, with over 3,500 recorded deaths from the disease.
Europe has lost over 30,000 lives to the coronavirus pandemic, AFP has reported. Italy accounts for more than a third of the grim number.
Just four days ago the 30,000 benchmark was surpassed by the entire world, which shows how quickly the deaths mount and how hard European nations suffer from the disease.
Apart from Italy, the highest numbers of deaths in Europe have been reported by Spain, France, the UK and the Netherlands.
The global coronavirus death toll has topped 40,000 on Tuesday, with the United States, China and Iran affected worst among non-European nations.
The virus poses greater threat to people with preexisting conditions and older patients, which is an apparent factor in why Europe’s comparatively older population suffers more than people in younger parts of the world. However many middle-aged and younger people develop serious symptoms too.
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Europe has lost over 30,000 lives to the coronavirus pandemic, AFP has reported. Italy accounts for more than a third of the grim number.
Just four days ago the 30,000 benchmark was surpassed by the entire world, which shows how quickly the deaths mount and how hard European nations suffer from the disease.
European stock markets are falling at the start of trading on Wednesday, beginning the new quarter with fresh losses, as the death toll in the United States from Covid-19 continues to climb.
Germany’s DAX plunged by 3.2 percent during early trading, while Spain’s IBEX and Italy’s FTSE MIB are both down 2.2 percent. Britain’s FTSE 100 has dropped by 2.6 percent.
