Posted on 09/14/2023 1:00:54 PM PDT by ChicagoConservative27
It’s pretty simple. More regulation, the devalued dollar and limited leases. That equals, in order of the prior sentence: too much government, too much government spending and too much government.
Interesting data:
https://www.statista.com/statistics/748207/breakeven-prices-for-us-oil-producers-by-oilfield/
How representative these numbers are for a lot of the offshore areas our gov’t has restricted development of, I do not know.
How much of these costs are due to over-gov’t and the green agenda I also don’t know - maybe someone has some estimates. For example, Keystone was supposed to send light shale oil to Canada to mix with their tar sands heavy product to make it pipe-able back to the US to be refined. (Also the mix can be adjusted to better suit the refineries.)
If that is true ($90 oil) we are screwed. This economy* can’t take that for long.
*I don’t just mean the US economy, because a failed global economy hits us hard regardless of how isolationist some want us to be.
he sold all that to china already.
*****************
Why wouldn’t he?
That’s where the manufacturers are, they need energy to run their manufactories, and we need goods for our “woke office based” workforce to buy.
Also, as retirements grow over the next decade, global producers who provide the abundance for “Make Work International” are going say “later.”
Imagine a world where nobody participates in agricultural, manufacturing, or industry.
You say...that’ll never happen... Its bullshit.....plenty of people out there...that aren’t me to pick up the slack...Robots...AI.
Good luck.....I think we hit peak globalism 10-15 years ago & demographically the Globe is too old, to maintain the current inflated asset valuations.
That’s “operating”. That is, break even to keep pumping an existing well.
Wells deplete and dry up and must be re-drilled.
The needed price to replace wells is much more like $90, although the Permian Basin is lower.
Yes, I’ve seen graphics showing costs new and “operating” for various areas / regions.
I suppose we’d better concentrate on and open up more of the lower cost areas (offshore for some?). If the economy was roaring, and the US not going so heavily into debt, $90 oil might be sustainable. As it is, it’s gonna clonk this economy.
The lowest, by far, is the Permian Basin/Delaware Basin (so Midland and the 10 or so counties around it and the easternmost 3-4 counties in NM).
The only part that could be “opened” is NM, which is effectively shut down by Biden. TX has essentially no federal lands (due to being its own country). NM is largely federal.
On top of that, the NM state government is very hostile to employers, such that the cost of business is excessive.
It’s the same geology, but you hit the NM state line and almost everything abruptly stops and everyone becomes poor.
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