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To: thackney
US producers of shale oil need crude to be priced only above US$50 to $65 a barrel for their operations to remain profitable.

I remember driving across Texas and Oklahoma years ago thinking about the wells that were pumping and those that were not. Then it hit me: that one is a $30 dollar well and that one is a $40 well.

That being said, I can see Obama cutting a deal with Saudi to increase OPEC production/lower oil prices in order to 1) make US shale production unprofitable, and 2) increase business activity due to cheaper fuels.

10 posted on 07/09/2012 6:27:42 AM PDT by OrioleFan (Republicans believe every day is July 4th, Democrats believe every day is April 15th.)
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To: OrioleFan

As much as I hate to admit it, I thnk $30/barrel is too low. I think the $50-65/barrel is right and will allow for needed reinvestment and good profit.


21 posted on 07/09/2012 7:06:30 AM PDT by WellyP (question!)
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