Great news , question is : for how long can states - gas - stations (KSA, Muscovy, Nigeria, Algeria, Valenzuela, etc. ) survive in such terrible for them situation ? "Oil prices fell a fifth straight session Friday to tally a weekly loss of 9.1%. Concerns that growing U.S. production will offset output declines by other major producers aimed at rebalancing the market have pulled prices to their lowest settlement since late November. April West Texas Intermediate crude CLJ7, -1.67% fell 79 cents, or 1.6%, to settle at $48.49 a barrel." http://www.marketwatch.com/story/oil-prices-down-5-straight-days-to-lose-91-for-the-week-2017-03-10
i do agree with them, we see today the second shale revolution "High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our T&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. https://www.ft.com/content/d918e0f8-5646-35ea-93dd-588e5c5b0e0d Now the full implications of that are beginning to be obvious: a second shale revolution is underway. The story is impressive. Costs have been cut to the point where the industry as a whole breaks even at $50 — and in some cases even below that. But, most important, more reserves have been found — particularly of oil. That will be the focus of the second shale revolution and, once again, global markets will be severely disrupted. After the dip last year, production of oil from shale rocks in the US is increasing again. Estimates for this year range from a net increase of between 400,000 and 800,000 b/d. And 2017 is not a one-off year. The Permian Basin in Texas — the main focus for the new activity — has oil reserves that exceed those of all the largest discovered fields globally, such as Ghawar in Saudi Arabia and Prudhoe Bay in Alaska That means we can look forward to a strong continuing increase of perhaps as much as 800,000 b/d each year from shale until 2020. That would lift total US oil production by then from 9mb/d per day to around 11m. Demand growth across the world is unlikely to exceed 1mb/d and could well be less. Extra US supplies will take the lions share of that growth and make it harder to reduce the overhang of stocks that puts a ceiling on prices. Even if Opec and Russia fully respect the quota system they have agreed, developments in America will outweigh their efforts. Opec and the Saudis in particular will have to make more cuts to maintain current prices. With that growth comes more gas that is produced alongside the oil. The US is already well supplied with gas and having recovered a little at the end of last year US natural gas prices have fallen below $3 per mbtu and look set to go lower. At that level, gas will displace more coal in the US power sector, making it extremely difficult for President Donald Trump to fulfil his campaign promises to rebuild the coal industry. Increased oil and gas supplies will bring the country closer to self-sufficiency and less reliant on imports. The need and desire for the US to intervene in conflicts around the world will thus be reduced. Increased gas exports seem inevitable — to both Europe and Asia. Given the new warmth of the relationship with Japan, a long-term trade deal involving gas exports seems possible. But, as there is already a glut of production, that will hurt other suppliers. More is due on-stream around the world as LNG projects under development begin to be commissioned. Growing US exports are the last thing gas producers from Russia to Australia want."https://www.ft.com/content/d918e0f8-5646-35ea-93dd-588e5c5b0e0d
it will kill all of them, they lived from oil rents last 50 years or more, no one is gonna pay them (states - gas - stations) such money anymore
Why? If we're producing our own oil and have it at $30 per barrel, why will it hurt us when we have an overabundance of it? Why should oil still be an outrageous price when we're independent? I'd be highly pissed off if I'm paying $3.00 for a gallon of gas when we're oil independent.
The Saudis tried to flood the market before already, didn't destroy the competition before now did it? They want to control oil in the long game, but it's good for consumers and saves our untapped reserves. I call that a WIN every day. Venezuela can kiss my rosy cheeked ass, I've been to that hell hole before. It's a wretched government.
Most liberals would see that as a win though. Those evil corporations will see their profits slip. I do agree though, at $30 a barrel we will see a dip in exploration, especially in the harder to reach areas.
OPEC wanted them to cut back volume to prop prices up. That's flooding the market when other nations have stepped up production.
Well, it also costs money to manage a reserve properly.. and there are repairs etc. Too many Americas don't think of the oil business as a "business".. They almost think of it as a government project.. Many of those people are also conservatives.
Once again, that's a win. It conserves western reserves until a time technology can catch up with improved extraction methods.
You don't know what you are talking about. OPEC cut production by 1.5 million bpd and US producers have rapidly increased production to the point that they are storing oil above ground... Meanwhile the ppb is headed DOWN.
So I don't know what I'm talking about? Increased domestic production will have a downward effect on global pricing....especially since we are a major consumer. As the price per barrel drops, so will domestic production until an equilibrium is achieved. It will be like this forever until we run out of oil (if that is possible). Call it radical and a little bizarre, but I would not be opposed to an export tariff if it would keep us out of the middle east hell holes. Any oil sales outside the US and Canada gets a ppb export tariff.
The cost to maintain current developments isnt going to change based on the ppb. What suffers is new exploration and the jobs that creates. It requires far less, and different, personnel to maintain a current field than to develop a new one.
Don't know.. recent maybe 2015. The numbers don't change much. Other charts and graphs reflect the same information.