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WTI trades negative: five things to know about shut-ins
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
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
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Five shut-in considerations
- 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 the following images and tables:
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Lower 48 short run marginal cost curve
What's included
This report contains:
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