Skip to comments.Shale oil can't stop crude topping $150 by 2020
Posted on 02/23/2013 3:59:29 AM PST by Laurent.w
Oil prices are likely to rise sharply from 2015, surpassing $150 a barrel in 2019 and 2020, Bernstein Research said.
The 180-page report from Bernstein estimates Brent will rise from an average $113 in 2015 to $158 in 2020, with U.S. crude priced at a $5 discount.
While U.S. shale oil and Canadian oil sands have reinvigorated the North American oil industry, new supplies are too small to meet emerging market demand growth. By 2015, shale oil is forecast to constitute just 3.2 pct of global supply, up from 1.5 pct now.
The cost of production will support prices. Bernstein estimated the marginal cost of supply - the cost of production for the most expensive new fields - rose to $92 a barrel on average last year.
It said that Canada's oil sands producers need $100 a barrel to achieve an adequate return on capital.
With oil demand forecast rising from 90 million bpd now to 100 million bpd 2020, OPEC would need to lift capacity by 9 million bpd from about 35 million bpd now to balance world markets.
(Excerpt) Read more at reuters.com ...
Probably due to inflation (excessive printing of US dollars), rather than simple supply and demand.
Or probably just flat out lies coming from the MSM.
Considering we just had a NY Slimes article that advocated for high gas prices to reduce use, I don’t believe a damn word of this article.
Oil will be up 50%
Food will be up 50%
Housing will be up 50%
Gold will be up 50%
The only thing common to all these things is the paper dollars we use to pay for them. It’s a good thing none of them are used to calculate the Inflation Rate, or we might have inflation!
Let's be real....Utility companies are rapists by nature...and the government is a leach.....Look at your bills.
I missed the part where the author alludes to consistent improvements in shale oil extraction processes either by individual players or, more and more, via JV pooling of resources and leveraging of industry knowledge. Output due greatly to greater efficiencies will grow and prices will come down.
But with a caveat: the feds must NOT introduce new regulations bent on stifling the otherwise inevitable progress. Right now, it’s a tossup. But left alone it will happen, I’m sure.
THERE wouldn’t be “too little” IF they were allowed to DRILL MORE! These people are IDIOTS and I am sick to death of them getting away with this crap! There’s all kinds of gas and oil in the shale regions but the ENVIRONMENT WACKOS are making sure it stays in the ground. It’s time to stand up to these people and SHUT THEM UP!
Here is a video that was on Fox News about the area I live in. Towanda PA located in Bradford County is about 20 minutes south of the NY border. The gas drilling has slowed down alot in the last year and a half and the traffic is more normal now. We have heard that it’s due to the lower natural gas price.
THERE wouldnt be too little IF they were allowed to DRILL MORE! These people (democrats) are IDIOTS and I am sick to death of them getting away with this crap! Theres all kinds of gas and oil in the shale regions but the democrats(EPA, Obama, etc) are making sure it stays in the ground. Its time to stand up to these socialist evil people and SHUT THEM UP!
The author confuses fiat money with wealth. Oil, wheat, land, gold are all real assets. When the Federal Reserve Corporation prints a lot of money of course the value in dollars of any real asset changes.
While the changes in wages and prices due to money-printing is commonly called “inflation”, economic historian Ludwig von Mises declared that inflation was really the act of creating the extra money in the first place. When that new money is pushed out into the economy (by the government buying things, paying wages, or buying votes via “benefits”), various sectors of the economy respond differently and prices in those sectors go up at different rates, or even not at all.
We see this today where government policy has been to attempt to boost home prices. But prices for stocks and bonds have gone up far faster than home prices or wages.
There is shale all over the world. China and others will learn how to develop it. Plus nat gas conversion will suppress demand.
so if we unlock our phones then will democrats/Obama come to get us and put us in prison? Yes.
Democrats everything they do is for the goal to advance socialism( grow government ) and at the same time take away our individual rights and freedom
sorry I meant to post to this other thread
Bush is in bed with the oil companies, gas is 1.88 a gallon.
Obama is in bed with Wall Street, gas is 3.50 a gallon.
The only thing that has changed is we are now producing more domestic product. A third grader writing for the Weekly Reader could figure this one out. The MSM? Not so much.