“For those wondering where US shale exploration and production companies will be in about 2-3 years, look no further than the gold miners, where the disconnect between undaunted physical demand and relentless paper supply”
Sorry, I don’t see the connection. Oil, the most critical industrial commodity in the world and which is in oversupply right now, has not outrun it’s physical supply by paper trading of factors of hundreds like gold, which is a commodity with minor (though important) industrial uses, and whose total existing amount would fit in 1/3 of the Washington Monument.
Greetings catnipman:
Relatively costly gold mineral extraction efforts will cease operations until the price rises again. Likewise, the relatively costly shale operations must cease production until the crude oil prices rise again.
Over most of my lifetime, the USA imported finished petroleum products to meet consumer demand. Lately, the USA not only net exports crude oil, we export finished petroleum product.
Cheers,
OLA