Iraq, Kuwait, the United Arab Emirates, Russia and Saudi Arabia will extend an OPEC agreement for oil production cuts for another six months. OPEC recently agreed to a six month 1.2 million barrel per day oil production cut.
OPEC is trying to clear the oil markets of extra oil inventories and over-production.
There is weakening global economic growth and surging US oil supply.
Oil future prices dropped 11 percent last week. Brent crude traded below $54 a barrel which the lowest since September 2017.
US Oil production has the capability of increasing production by 4 million barrels per day over the next three years.
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Sorry, I find it hard to believe that an industry is 265 billion in the red and not curtailing operations.
Those conditions exists outside the US. The main reason why fracking came to be and did so well in the US is because of the unique resource rights property system the US has.
Now the technology is mature and quite proven. Any body can pretty much use it. Most big players don’t because they abhor true competition and fracking is not a big league oil company’s game. State owned oil firms could deploy the tech tho.
Earthquake damage has been proven to be a bunch of Saudi-funded environmentalist BS just like the ‘tainted’ water stories were. 3 times Obama’s own rigged EPA conducted biased studies to try to make this hold up. 3 times not even they could do that.
And I believe the frackers re-uses some environmentally safe lubricant in lieu of water nowadays.
and don’t forget the cardigan sweater he wore while giving that televised speech telling Americans to wear sweaters indoors while turning the thermostat down (which California is telling its people according to the posters I see at the BART stations these days).
Cost Carter the election. Well, that and his de-facto fellatio on the Iranians over the hostage crisis instead of sending in the troops, as the ayatollahs KNEW Reagan would do and that is why they freed the hostages within hours after Reagan was sworn in.
It just means that there is oversupply as opposed to tightening supply. And that they infer that various players in the producer’s market will take a hit one way or another.
How could this be possible! The Peak Oil tards on here keep insisting that fracked oil is a dead duck despite reality proving them wrong each and every day. Despite how frackers have BARELY touched the recoverable reserves in America!
The frackers are expanding their operations and are profitable at $40-$45 a barrel oil. People seem determined to not realize that this is a technological race and that the frackers who survived the downturn a few years ago have achieved escape velocity and won’t die unless oil goes to $30 a barrel for a year.
They will develop their domestic oil and gas using fracking.
Throw enough money at something and it develops. The more relevant question would be if it will be cost effective which it probably won’t be.
But lets face it throwing money at something is the China way.
China has tight rock gas, not oil. But without property rights and rule of law, China will have difficulty developing its resources quickly and efficiently.
Russia requires foreign oil services companies to develop its resources. China will do the same.
“…We need the balance of trade improvements…”
What are you on about, that profit is out your pocket not some foreign person?
This is the most bizarrely mangled memory of the malaise speech I’ve ever read.
Shale oil was not a player at the time, oil shale and oil sands were (different sources, different technologies). Carter’s directed speech on the topic is quite interesting. Carter called for less, a lower standard of living. “Sacrifice” He was totally wrong. https://en.wikisource.org/wiki/President_Carter%27s_Address_to_the_Nation_on_Proposed_National_Energy_Policy
Anyone remember Jimmy Carter’s”malaise speech”…in it he states that the USA has 3 times the amount of oil than Saudi Arabia locked in shale and we need to stop relying on the middle east and the endless wars and invest in green energy…He was 50 years to early,big oil called him a socialist and doubled down on the middle east.
Good, they cut and the US producers stay marginally profitable. We need the balance of trade improvements. As long as the US oil frackers are paying for their economic externalities (water use, land disruptions, earthquake damage) then this gives us a short bridge to reduce our use of oil in transportation systems. It reduces the need to have the US military defend dictatorships in the Middle East. But this boom will come and go and gov’t needs to make sure that the taxpayer is not paying for the cleanup when these small players and wildcat guys go bankrupt. Given the oil price levels the Interior department should stop giving away these drilling licences.
I always like when pundits use terms like “over supply” and “glut” to describe the world oil market. That’s another way of saying that prices aren’t high enough for a small minority of investors and stakeholders. It’s presumed that the interests of this small minority is the PRIMARY good. Whereas I’m quite sure that everyone else disagrees; prices aren’t low enough.
Speaking of which. http://static.conocophillips.com/files/reports/conocophillips-greg-leveille-barclays-shale-oil-te.pdf
Keep reading your green fantasies. And the Frack companies will continue to refrack their wells to top production off. https://marcellusdrilling.com/2017/05/turn-soso-shale-wells-into-high-performers-with-refracking/
And the WSJ has never shown themselves to be asses when reporting about shit they have no understanding of. They are pissed because the big boys have been frozen out of the plays because those companies have zero experience with fracking.
Snicker. Never happen for the same reason fracking is not happening anywhere outside of the U.S. the conditions outside of geology do not exist anywhere else in the world. Especially in China. But I love it when China wastes resources.
Where there is shallow oil shale, there is little water. Where water is available, the shale is twice as deep under a narrow valley between mountains.
Yup easy to do when you are loosing your shirt.
Early this year the Wall Street Journal estimated that “the companies behind the U.S. oil boom together have spent $265 billion more than they generated from operations since 2010.”
Lookup “frackers-could-make-more-money-than-ever-in-2018-if-they-dont-blow-it”
https://thetyee.ca/Analysis/2018/12/05/Oil-Wild-Price-Swings/
Meantime another fracking boom starts developing in China, the biggest shale reserve country in the world. Eventually fracking is going global, albeit slower than initially expected