Posted on 03/09/2017 8:36:00 AM PST by bananaman22
In a rather unconventional warning, Continental Resources chief executive Harold Hamm said on Wednesday that should the U.S. oil industry embark on another spending spree, it could “kill” the market.
Speaking at the CERAWeek conference in Houston – one of the largest gatherings of oil executives and ministers, including this year Saudi Arabia’s oil minister Khalid Al-Falih – Hamm said that U.S. crude oil output “could go pretty high”.
But Hamm was quick to add, as quoted by Bloomberg:
“But it’s going to have to be done in a measured way, or else we kill the market.”
(Excerpt) Read more at oilprice.com ...
A flat oil market will also collapse the Russian economy. That would be very bad. Slow squeeze is a lot more effective.
Best to bring up the heat slowly on a bucket of frogs.
The US is becoming the global swing producer, supplanting Saudi Arabia, because of the shale revolution (relatively quick ‘on/off’ through rapid depletion of an individual well) and it will be enhanced even more thanks to Trump’s encouraging approach. Ruining OPEC’s economies in the process that are 100% oil based is a great thing. Another benefit is reduced energy prices for us consumers and industrial users.
I wonder if Harold understands how the free market works. No one is going to put money into something that they don’t think is going to generate a return. I suspect he knows this. So what he really means is that all this spending is going to destroy the TRADITIONAL oil market. Too bad. That market has needed to be shaken up for a long time. Creative destruction is the life blood of progress.
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