Not true, 80% of shale is profitable at around $60 a barrel.
Also, people keep forgetting that the wells already drilled cost very little to produce. It’s only drilling that becomes risky at lower prices. New drills will slow, leading to higher prices later.
It’s a self-correcting system, the current alarmism is silly. It’s the Saudis who are running scared, not the USA.
Enjoy the temporarily lower prices, they won’t last more than a year or so. This is a great problem to have.”
Agree!
When I graduated from graduate school (along time ago) I worked with Humble Oil & Refining (EXXON) in south Louisiana. They were making money hand over fist selling crude at $3.25 per barrel.
Enjoy the the temporary “cheap prices” and watch the Saudis take it in the shorts!
1. American domestic petroleum production is zooming through the roof.
2. China is about to do a GIGANTIC deal to buy petroleum products from Russia and will build pipelines to get both crude oil and natural gas from Siberian oil and gas fields.
In short, OPEC is about to lose its two biggest customers--that could result in a huge surplus of oil on the open market soon.