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WTI trades negative: five things to know about shut-ins

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On 20 April 2020, Lower 48 shut-ins just moved from rhetoric to widespread reality. May WTI contracts went into the red, closing at negative US$38/bbl. Negative. Simply put, the paper and physical markets converged, albeit at a low volume. Shutting-in wells will follow and curtailing individual wells will expand to closing entire fields. But it's a risky business. We outline five key issues – some strategic and some tactical – to help understand the topic.

Table of contents

  • Executive Summary
    • 1. Storage capacity is filling
    • 2. Wellhead economics
    • 3. Company-specific considerations
    • 4. Operational and engineering considerations
    • 5. Subsurface considerations

Tables and charts

This report includes 1 images and tables including:

  • Lower 48 short run marginal cost curve

What's included

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    WTI trades negative: five things to know about shut-ins

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