Marina Schwarz

5 Constraints on Shale Oil's Effect on Prices

Recommended Posts

Well written, level-headed, factual article about U.S. Shale Oil production constraints.  And no hyperbole in the article.

  • Like 1

Share this post

Link to post
Share on other sites

Great article Marina.

I think investors and oil traders tend to take the simplistic view without really looking into the potential outcomes of higher commodity pricing. I think they believe higher oil prices will lead to massive increases in US production. Which it should but there's a lot more going on some of which is mentioned in your article link.US operators are missing out on a huge amount of cash due to higher oil prices and restrictive hedges initially put in place to fund growth and ensure against volatility in the market.  It may work in their favour if oil prices were to suddenly crash again but for the moment it's negatively impacting their free cash flow. 

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

You are posting as a guest. If you have an account, please sign in.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.