Is the gas price plummet starting to make sense now?
Russia continues record oil production ' energy ministry
https://www.rt.com/business/324267-russia-oil-output-opec/
If the Sauds were to tighten up it would not put Russia in the black. The price of oil probably can’t go much higher than $60 whatever OPEC might decide to do short of starting a general war. At that price the shale wells become profitable again and come back on line. There is so much shale oil in the ground in so many places that the cost of producing it is what determines the unmanipulated price of oil. Even now, as the price is too low for most shale oil to be profitable, the industry is working on technology improvements to reduce the cost. Once it is opened up again by some combination of falling costs and OPEC controls OPEC loses its last handle on the price. Arabia keeping the taps open would seem to be the most profitable long-term policy, I think. The Sauds can always choke down for a short term flood of money in a national emergency even though that will hasten long term lower prices. If they restrict production as a general rule to keep the price up the price will fall steadily as shale oil production ramps up and the cost of production goes down.
Oil crash is shrinking MY GDP.
Royalty checks are 40% of normal. We will be just fine, my primary job isn’t in the oil field. But. $1.63 gas doesn’t make up for the loss of income (and Texas doesn’t care that property taxes next month will be >20% of the annual new net.)
Blah. Surely there’s some happy medium where prices can be lower than the recent norm but not so low they kill off royalties and jobs.
$75 oil would suit me fine.