A local paper published an article titled "OPEC's thorn in the flesh" in their weekly business section and caught my attention.
"A few key things have changes in the oil industry over the last few months.
One , US shale players are adapting to lower oil prices.
Two, technology is enabling shale players to extract so much more oil with less drilling - hence less capital expenditure.
Three, the efforts by the OPEC to cut supply is in fact helping the competition.
The conclusion is that oil rising above the US$55 level is going to be tough from now.
Here's the reality. US shale oil production has definitely rebounded, and this is one of the major reasons why oil prices are falling below the US$50 level.
This recovery in production has been boosted by falling production costs and efficiency gains within the US shale oil industry."
Back in early 2016, Bloomberg reported a news on their website latest information on US shale oil break-even cost.
"Texas has a message for $30 crude doomsayers. Bring it on."
" A handful of shale patches in the state, which would be the world's sixth-largest oil producer if it were a country, are profitable with crude below $30 a barrel, according to an analysis by Bloomberg Intelligence. In De-Witt Country, which produced more than 100,000 barrels a day in November from the Eagle Ford formation, the average well can be profitable with a U.S. benchmark crude at $22.52 a barrel, $4 below the lowest level this year."
Click below link for more detailed news :
Texas Isn't Scared of $30 Oil
Source :
1) www.thestar.com.my
2) www.bloomberg.com
No comments:
Post a Comment