1) The Fed created 4.1 Trillion dollars over a 6 yr period, from nothingness. That’s 25% of US GDP from nothingness. Saudi Arabia has its own central bank too and can do the same thing, so don’t think $25 oil means anything all that much.
2) The EIA has been calling for record output for 3 yrs. Calling it for 2018 also means nothing.
3) Check out the profitability of the major frackers. Here:
https://www.google.com/finance?q=wll&ei=6dIlWZjdCJXUjAHukqq4CQ Whiting Petroleum, $4 loss per share
https://www.google.com/finance?q=NYSE%3AOAS&ei=7tIlWeDEMsf7jAGD_LTICg Oasis Petrleum, losing 89 cents a share
https://www.google.com/finance?q=clr&ei=GdMlWdD3B8Sy2Aar9Iv4BQ Continental Resources, Harold Hamm’s outfit, losing 50 cents a share
Don’t Believe Propaganda. Fracking is losing money hand over fist. Why/How do they continue? Borrowed money. The Fed is essentially printing oil, out of desperation.
There is no American magic. You have to pay to drill. It can be $10 million spent just to drill and frack a hole. The Saudis have been flowing oil from holes drilled 50 yrs ago, and they flow more from that hole than a typical shale well (Ghawar well flows 5000 barrels/day (and that’s after 50 yrs of it) and a Bakken well flows maybe 500 barrels per day after a year of flow. Shale wells die quickly.)
Don’t Believe Propaganda. Even if it’s American Conservative propaganda.
Shale is happening because the Fed is handing out low interest rate money and instructed lenders not to foreclose when payments were missed.
Oh and btw, check out February’s latest Assay of Bakken oil. It’s now API 43 degrees. That’s very close to condensate.
IOW, it’s not oil. It’s “liquids”. Nearly no diesel or kerosene (jet fuel) in its constituent refinery yield.
You can find this info at Statoil’s assay page.