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To: thackney

I’m all for gasoline prices going down, but will oil prices dropping down that low make it a problem for shale and fracking?


32 posted on 10/30/2014 5:50:15 AM PDT by Marko413
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To: Marko413
No doubt that falling oil prices will mean less investment into oil production.

Smaller operators with too much debt and in need of cash flow to make payments are going to be selling assets.

Majors will a longer-term view will buy in if they believe future oil prices will make it profitable in the long run.

The problem with tight formations like shale fields is the quick drop off in production really reduces the “long-run” payout.


36 posted on 10/30/2014 5:53:52 AM PDT by thackney (life is fragile, handle with prayer.)
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