This year’s tumultuous drop in crude oil prices is one of the worst in our industry’s history. Although WTI began the year in the $60/bbl range, the combination of a nasty price war between Saudi Arabia and Russia, the COVID-19-induced global demand crash, and a lack of storage capacity caused crude futures to plunge 300%, to minus $37.63/bbl in mid-April. Although prices have recovered since then, thanks in part to an agreement between Saudi Arabi and Russia plus rising demand in China, they remain too low to encourage drilling activity. Uncertainty regarding the pandemic and future demand, coupled with high global inventories and spare production capacity, put forecasts for WTI at approximately $40/bbl for the remainder of the year.
https://www.worldoil.com//magazine/2020/july-2020/special-focus/digital-completion-system-integrates-ofs-data-to-increase-fracing-efficiency-lowering-operational-costs?id=31307113
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