Drill Baby, Drill!
Channeling legendary sportswriter and novelist Dan Jenkins, ‘hey Abdul, better learn to pan fry them cobras’.
Has there been any speculation of Trump opening ANWR for drilling?
Cut off all pipeline flow of gas and oil products withing a 100 mi. radius of the NYC Governor’s Mansion, now surrounded by a high wall/fence.
Thank you, Texas oil men. You are the BEST!
The price should be fairly stable going forward as cost of production will control since the Saudis have probably learned their lesson.
So, just riding those dividends here.
Not good for the oil price.
Net oil imports: 5.0 million bpd
Anticipated rise in production (by 2022): 3.5 million bpd.
Net oil imports, 2022: 1.5 million bpd.
Petroleum use should be pretty steady, based on past decade and future fuel economy.
Pretty close to energy independence.
Furthermore, the actions of such giant "vendor-financing" providers as China (seen best in the case of Venezuela, where China continues to provide Caracas with much needed funds in exchange for far below market oil deliveries) remain unpredictable, and may afford these non-core OPEC nations just the funds they need to also steal market share from Saudi, Iraq and UAE.
While Venezuelans starve, the socialist regime is kept alive by China. The sweetheart oil deal with China means that there's even less petroleum revenue to hold up the Venezuelan economy. Zimbabwe, here we come!
That is an average. Many wells are below that level. The Sauds acted as if the average was a hard line that cut through everybody. It is the nature, too, of free market capitalism, that costs of production decline continuously. If costs are too high to produce at a certain level, the Sauds win temporarily by undercutting it. SOme companies bankrupt. Others cease production. But other comanies are buying up the bankrupts' assets and they and the survivors are working hard to reduce costs and increase efficiency (same thing) and go back into production when they have become profitable again. Saudi oil is a state monopoly and ultimately cannot compete in the free market so long as the Saudi government receives the profit. Social and military spending (and corrupt diversion) will always rise to the level of the revenue and becomes painful to reduce. With the government in the USA backing off, the the Sauds are stuck with an overhang which will come down slower(voluntarily) than the fall in revenue. We win. Sauds lose.
Right now just about every major oil producer or services company is LOSING money.
For those in the know, I have a question.
What will change that, and will it change in light of oil prices staying the same or going lower?
Appreciate your well qualified opinion.
Shale 2.0 could drive costs down to $5 - $20/bbl. http://www.nextbigfuture.com/search?q=shale+2.0
We have multiple Saudi Arabias worth of shale reserves, and if big computing allows anything near these prices for production, we will export a LOT even at $50/bbl., let alone a higher price.