American Shale-oil Producers Are on a Roll

[Sanjay 0]

Surprisingly, they have not yet roiled the oil markets

https://www.economist.com/news/business/21742124-surprisingly-they-have-not-yet-roiled-oil-markets-american-shale-oil-producers-are

Edited May 11, 2018 by Sanjay
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[William Edwards + 708]

The article makes some good and valid points. But it tells only part of the story. The parts that it does not discuss completely overwhelm the parts that are discussed. For example, how do you incorporate the impact on the industry, including the the supply/demand balance and prices, that results from the potential availability of 10 million barrels a day of new production that can be delivered to the water at less than $10/B? Denial may blunt your uneasiness, but the question deserves an honest answer.

It would be nice if US producers had a means of matching production with necessary requirements. Such control does not exist. It would be nice if there were some magic relationship between the supply/demand balance and the price of crude. Unfortunately such does not exist. Until something significant changes the industry will continue to endure a random roller coaster existence.