“The leaner, meaner and more resilient U.S. shale is basically wiping out OPEC’s efforts to achieve higher oil prices with the output deal.“
“wellhead breakeven prices in the Permian Midland have dropped from $71/barrel in 2014 to $36/barrel in 2016–a 49-percent decrease“
OK, I kid about the second group (“leave it in the ground enviro-weenies”) – they brook no dissent; it is either THEIR favorite form of energy to be used or nothing. Coal, gas, oil – well, if forcing the rest of us to live as if we were back in the 1700 is “collateral damage” in saving GAIA, well, so be it. Just remember that just like the EPA not letting Alaskans use wood for heat during deep money, you won’t be allowed a wood fire with which to cook.
Obama, on the other hand, saw that his desire for America, to be just “yet another country”; his philosophy of “Leading from behind” shows exactly that. He KNEW that if American frackers were allowed to succeed, well, the resulting energy from fracking would have world-wide ramifications. He didn’t want that, so he closed down Federal lands and tried, with the enviro-weenies, to kill fracking on private lands.
Hahahahaha – didn’t work! American technology and ‘git’er done”. Glad to see it (reformatted, emphasis mine):
Has OPEC Underestimated U.S. Shale Once Again?
…With lessons learned from the oil price crash and budgets streamlined and focused on the most prolific shale plays, U.S. drillers are giving OPEC a hard time by raising output and hedging future production. Meanwhile, the cartel members are trying to cut supply and fix the price of oil at such a range that would allow them to reap higher oil revenues, but not allow the shale patch to recover too much too fast.
Two and a half months into the supply-cut deal, it looks like OPEC is losing the campaign to prop up oil prices. The drop in prices that began last week saw them retreating to almost exactly the same level as on November 30 – just below $52/barrel for Brent – when the OPEC deal was announced, the International Energy Agency said in its monthly report on Wednesday.
At the same time, reduced breakeven prices in many shale plays and forward locking-in of production is allowing the companies currently drilling in the U.S. to turn in profits even at a price of oil at $40 a barrel.
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