“The smaller guys must have oil at $90-$100 to be profitable.”
Not true, 80% of shale is profitable at around $60 a barrel.
Also, people keep forgetting that the wells already drilled cost very little to produce. It’s only drilling that becomes risky at lower prices. New drills will slow, leading to higher prices later.
It’s a self-correcting system, the current alarmism is silly. It’s the Saudis who are running scared, not the USA.
Enjoy the temporarily lower prices, they won’t last more than a year or so. This is a great problem to have.
Both of you have it right.
Not true, 80% of shale is profitable at around $60 a barrel.
Also, people keep forgetting that the wells already drilled cost very little to produce. It’s only drilling that becomes risky at lower prices. New drills will slow, leading to higher prices later.
It’s a self-correcting system, the current alarmism is silly. It’s the Saudis who are running scared, not the USA.
Enjoy the temporarily lower prices, they won’t last more than a year or so. This is a great problem to have.”
Agree!
When I graduated from graduate school (along time ago) I worked with Humble Oil & Refining (EXXON) in south Louisiana. They were making money hand over fist selling crude at $3.25 per barrel.
Enjoy the the temporary “cheap prices” and watch the Saudis take it in the shorts!
lol I’m SURE as hell enjoying them.
I remember back... I think it was 1998, reg unleaded was like 0.98 per gallon here. Those were good times, all around. I remember when it got to around $1.75 at around 2004, and the manager at the gas station said we’d probably never see $1.50/gallon gas ever again. (sucked to hear that because he’s always right when it comes to that)
Now, we’d just be DELIGHTED to see it get to $2.25! LOL