Posted on 02/23/2016 3:37:35 PM PST by bananaman22
OPEC recognizes role of shale. El-Badri largely admitted OPEC’s waning influence due to the rise of U.S. shale. "Shale oil in the United States, I don’t know how we are going to live together," he said in Houston on Feb. 22. “Any increase in price, shale will come immediately and cover any reduction.â€
The IEA’s report mostly backed up that sentiment. Although the Paris-based energy agency predicted shale would decline substantially in 2016 and 2017, the IEA also said that shale would bring back 1.3 mb/d of liquids production by the end of the decade.
Low prices now, but high prices in the future? But El-Badri also said that the large cuts to upstream investment today will lead to “a very high price†in the future. “The concern is no investment now, no supply in the future. It’s as simple as that,†El-Badri said. “If there’s no supply coming to the market, prices will go up.â€
(Excerpt) Read more at oilprice.com ...
Haha, the shoe is on the other foot. Thru shale, the US is the marginal producer.
A link at the site ...
$80 Oil By June – Do NOT Be Fooled By The Mainstream Media
Surely no one is that stupid. Hey, want to buy some fifty-dollar silver? Not yet, you say? Well, it’s your loss.
No mention of increasing Iranian market share.
The U.S. has more energy reserves than all of the countries in the Middle East combined.
The Saudi’s know exactly how to respond to our domestic oil industry. They are leveraged to the teeth and have to pump oil from the ground just to pay their massive debt. If the Saudis can continue to flood the market with cheap oil, they will drive many of them, including some very large ones, into bankruptcy.
Come on people! No way U.S shale can compete with Saudi oil. What we can do is put A WHOLE LOTTA OIL on the world market. Combine that with ANWAR /Keystone pipeline and last -the Yucca Mountain project. Watch our enemies squirm. Sorry but Trump would do it. I’m a Cruz man.
Once they go south, the next question is who lent them the money and how will they survive? It could get very ugly.
Put a ban on MIDDLE EAST OIL
THAT WILL STRAIGHTEN THINGS OUT
us jobs
No bank fails
Less unemployment
No recession/depression in the USA
Let the mid east pound sand
True. American is blessed by the Creator to have self-sufficiency in oil, gold and natural gas. American integral fast reactors are 100% safe. American plasma recyclers can recycle whole automobiles and nuclear waste and then charge electricity for a small city...
Lame politicians keep us in the dark about our blessings. Solar was perfected in American in 1975 and is a waste of money, since it repays itself in 75 years. Geothermal was perfected in America in 1985 and is not worth it. Thankfully the shale gasification producers in North Dakota are keeping us free and independent with technology invented by Cal Tech in the 1980’s.
Bankruptcy indicates a healthy degree of competition in a free market. There is no world power that can regulate, tax, or otherwise destroy the free market for oil. As price goes down, only the healthy will survive. As the market corrects, then it will allow newcomers into the market. Let’s do this with health insurance and pharmaceuticals. Portability of health insurance, ie: allowing more competition in the marketplace will drive prices down and quantities produced up. Same scenario.
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