US Energy Dominance comes too an end or does it?

[Prometheus1354 + 178]

"https://oilprice.com/Energy/Crude-Oil/Is-US-Energy-Dominance-Coming-To-An-End.html"

 

First off, I'm surprised that Oilprice.com even employs this clown!  Nick is a Typing toe fungus.  He's a 'Greenie' from the mold festering Pac NW (OR)  He hates the President and the Country!  He does nothing too hide his disdain for the US. Especially the US Oil industry.  So with that taken into account, I cannot and Do Not take anything he says about US energy (Oil) with even a grain of salt.

Certainly there will and already has been a shakeout in the Shale sector. It would have come even without this pandemic sweeping the globe.  Which isn't a bad thing. Too many unhealthy companies chasing too few dollars.  Make no mistake, Russia and KSA/MBS have been caught holding heaping plates full of blame for the pricing issues that have hit the markets.  

Too claim the US will be forced onto bent knee much less do so willingly is folly.  Guess Nick will just have to hoard some more safety pins...  Then again, maybe MBS could 'convert' Nick by shipping him a supertanker full of Butthurt cream.  Nov 3rd will be here before he knows it.

Edited April 9, 2020 by Prometheus1354

[Danlxyz + 62]

Well, if you put aside your dislike of Nick, isn't that how capitalism is supposed to work? When supply is more than demand prices go down. The higher cost suppliers go broke and their assets are sold off. Investors and creditors take a loss. The high cost suppliers are many of the shale operators who have increased US production from 7mm to 13mm in the last 10 years.

The article is based on a lot of expert opinion: the STEO from the EIA, IHS Markit and Rystand Energy.

I do question one statement:

"The U.S. oil industry has scrapped 102 oil rigs in just the past two weeks"

Really? Scrapped as in cut up and sold for scrap metal? Maybe stacked would have been a better choice.

Edited April 9, 2020 by Danlxyz

[Bob D + 562]

Can't argue with your post other than to say of the largest oil producers only the US plays by these rules of capitalism. 

My issue is, and I've stated it here before, that for decades the US imported 10+mm bbls/d and that was when global demand was 50-60-70mm bbls/d.  The recent demand high was almost 100mm bbls/d and the US asks the world to take 4-5mm bbls/d and the answer from Saudi and Russia is global depression.  F@&% them!  

As for Nick - stick around OilPrice.com a while and you'll find a bunch of Nicks posting here.

 

 

13 minutes ago, Danlxyz said:

Well, if you put aside your dislike of Nick, isn't that how capitalism is supposed to work? When supply is more than demand prices go down. The higher cost suppliers go broke and their assets are sold off. Investors and creditors take a loss. The high cost suppliers are many of the shale operators who have increased US production from 7mm to 13mm in the last 10 years.

The article is based on a lot of expert opinion: the STEO from the EIA, IHS Markit and Rystand Energy.

I do question one statement:

"The U.S. oil industry has scrapped 102 oil rigs in just the past two weeks"

Really? Scrapped as in cut up and sold for scrap metal? Maybe stacked would have been a better choice.

 

[Danlxyz + 62]

I agree.  The oil & gas marketplace is not free. Every country tries to interfere for their own benefit and OPEC+ is a cartel formed to set prices. So, yeah F@&! them!

But over time supply and demand will rule. IMHO