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Bloomberg: Trump's Big Oil Deal depends on Weakest Shale Players Going Bust

BLA in Oil (General)

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BLA    + 1,666

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(edited)

 

https://finance.yahoo.com/news/trump-big-oil-deal-won-025642130.html

Trump never said that .  The author is deducting this reading into Trump's strategy of taking a market approach to reducing U.S. production.

My theory all along.  Personally I think the consolidation is long overdue.  Shale will come out of this stronger , with fewer players and fair pricing for producers and land owners.  Could take a year or more to play out. 

 

Hypothetical : Say Chevron is producing 500k bbls in the Permian.  Chevron then buys a bankrupt shale firm that was producing 100k bbls.  

Does Chevron post acquisition produce 600k ((500k + 100k) or something less.  In other words will the consolidation bring overall U.S. shale production to a lower rate when the same amount of reserves are in fewer hands. 

 

Edited by BLA

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