Is $100 Crude Bad For US Shale? That's what Oil CEOs Say

[Mark Sloan + 9]

$100 oil isn’t necessarily a good thing for the U.S. shale oil industry, several U.S. oil industry executives said this week. $100 oil could hurt the United States’ shale industry.

https://www.bloombergquint.com/business/shale-giants-view-crude-s-ascent-above-100-as-bad-for-industry

 

 

 

[cbrasher1 + 272]

There is really no need for $100 oil...it hurts  consumers and also tempts producers to drill into oblivion, therefore creating a glut and crushing prices.  I believe $65-75 keeps everyone happy, producers make money and keep people working and it's not rediculous for consumers

[Tomasz + 1,608]

Sweet spot longterm  is about 70-75 $.

If you want oil prices in triple digits its a question whether you want to live as oil industry long but modestly or rich but short life. like a gangster.

Please remember sweet spot is about 70 not 100. Dont get too greedy and it will make your life as industry longer.

Edited January 7, 2022 by Tomasz

[dukeNukem + 80]

45 minutes ago, Tomasz said:

Sweet spot longterm  is about 70-75 $.

If you want oil prices in triple digits its a question whether you want to live as oil industry long but modestly or rich but short life. like a gangster.

Please remember sweet spot is about 70 not 100. Dont get too greedy and it will make your life as industry longer.

The problem here is oil price just could not stay stable in the long term...It is always a roller coaster, too big and too complex system which is going from low extremum points to high and so on. 

70-75 is great price for stable ideal world, but I believe we are going into tripple digits zone.

 

[Starschy + 211]

For shaleOil Companies 100 USD is an issue as the quality is far beyond Iranian or Russian quality. one main reason Europe is not buying large quantities of Shale Oil.

[footeab@yahoo.com + 2,187]

Complete Baloney.  Consolidation already happened.  This just makes them solvent quicker.  Once debt ***free(reasonable levels) there is no sky.  Of course at $100 oil, this makes a LOT of projects around the world viable as they start up again which will drop it back down.  Of course $100 is not $100 and USD is on an inflation spike so...  Of course can shale producers produce quick enough to start selling on world stage in large enough quantities before US congress stops the outflow?  It is not like the USA has that much oil in reserve so long term it does not matter.  

[KeyboardWarrior + 527]

"hundred dollar bad cuz small player drill too much"

Deal with it fuckers. Build more downstream processing if you want to benefit from low oil prices. 

[Boat + 1,323]

More foreign refineries will drop oil prices. Lol Hell 30% of US refinery capacity is foreign owned. Lets try no foreign owned refineries for a couple decades and see what happens. Let’s drop foreign exports of oil and gas and keep that fuel home. Bet that might drop some prices.

[notsonice + 1,243]

$100 oil will result in more electrification/battery driven transport

 

World’s second largest mining corporation orders four Wabtec battery-electric locomotives

Scooter Doll

- Jan. 10th 2022 4:34 pm PT

Rail freight manufacturer Wabtec Corporation has announced its latest customer is Rio Tinto, one of the largest metal and mining companies on the planet. Rio Tinto’s order for four of Wabtec’s FLXdrive battery-electric locomotives will support its effort to achieve a 50% reduction in carbon emissions by 2030.

Wabtec Corporation ($WAB) is a manufacturer and freight company with over 150 years of expertise in locomotives. That being said, the veteran’s journey into electrification began only recently in comparison. Last June, we covered news of Wabtec’s California pilot program of its FLXdrive battery-electric freight locomotive.

The prototype locomotive delivered 2.4 MWh of energy capacity from over 20,000 lithium-ion battery cells. As a result, the FLX prototype could reach speeds around 75 mph and travel 350 miles. Wabtec has been able to to deliver much higher capacities since, and a collaboration with General Motors to develop and implement GM’s Ultium battery technology in future electric locomotives sounds promising for further performance improvements.

This past September, Wabtec shared that its first FLXdrive electric locomotive sold would be going to Roy Hill for iron mining in Australia. This was followed by news in November that Canadian National Railway Company (CN) had purchased its own FLXdrive battery-electric locomotive, the first to join its 19,500-mile rail network.

Someone down under must have been paying attention to the Roy Hill news last year because Wabtec just landed its largest electric locomotive order yet, lead by another Australian mining company.

The 100% electric FLXdrive locomotive / Source: Wabtec Corp.

Rio Tinto to lower mining emissions with Wabtec electric locomotives

Wabtec announced the news of the purchase from Rio Tinto today, which includes four of the newest version of FLXdrive freight trains. According to Wabtec, its most recent electric locomotives feature an energy capacity of 7 MWh, nearly triple the capacity of the prototype launched over a year ago.

Based on Rio Tinto’s planned route from its mine to the port at Dampier in Western Australia, the new FLXdrives are expected to reduce the company’s fuel costs and emissions by a double-digit percentage per train. Richard Cohen, Rio Tinto iron ore managing director of port, rail and core services, spoke to the purchase:

Our partnership with Wabtec is an investment in innovation and an acknowledgment of the need to increase the pace of our decarbonization efforts. By locking this in now, we are making progress in our efforts to reduce our Scope 1 and 2 carbon emissions by 50 percent by 2030.

Rio Tinto said it will use the FLXdrive locomotives to transition from the diesel versions in mainline service, recharging during each trip through regenerative braking and at charging stations.

In addition to providing the electric locomotives, Wabtec will also implement its energy-management software system to help Rio Tinto determine the optimal times to discharge and recharge the freight batteries along a given route.

Wabtec said it will deliver the FLXdrive battery-electric locomotives to Rio Tinto in 2023.

 

 

 

[Eric Gagen + 713]

On 1/10/2022 at 10:34 PM, footeab@yahoo.com said:

Complete Baloney.  Consolidation already happened.  This just makes them solvent quicker.  Once debt ***free(reasonable levels) there is no sky.  Of course at $100 oil, this makes a LOT of projects around the world viable as they start up again which will drop it back down.  Of course $100 is not $100 and USD is on an inflation spike so...  Of course can shale producers produce quick enough to start selling on world stage in large enough quantities before US congress stops the outflow?  It is not like the USA has that much oil in reserve so long term it does not matter.  

There is/could be a LOT of consolidation in the US shale industry - there are dozens of companies that would be on the lookout for an acquisition (or looking to sell) if they thought the economics looked right.  

US oil reserves are a very murky thing.  The 'official' numbers from the companies and definition of proved reserves by US law are extremely strict.  The published numbers may be high or low for individual companies, but for the country as a whole the aggregate proved reserves can be taken as an absolute minimum. 

[Petrloeum-Blownapart + 2]

Of course it’s bad for US Shale, wash rinse repeat cycle, how many times do these gangsters need to keep raping the industry with slack fiscal policies and drill baby drill mentality.

Good luck drill yourselves out of work again…

You deserve 120Bbl oil and let’s melt the LTO industry once and for all…

👊🏻

[cbrasher1 + 272]

On 1/14/2022 at 3:05 PM, Petrloeum-Blownapart said:

Of course it’s bad for US Shale, wash rinse repeat cycle, how many times do these gangsters need to keep raping the industry with slack fiscal policies and drill baby drill mentality.

Good luck drill yourselves out of work again…

You deserve 120Bbl oil and let’s melt the LTO industry once and for all…

👊🏻

Ummm....where have you been all of last year?? Prices were high, nobody jumped and tried drilling into oblivion.  I believe the industry as a whole "maybe" has turned a corner, cleaning up red ridden balance sheets and returning money to shareholders.  They have been warned, no more of that drill baby drill shit, everything is slow and steady in the Permian, everyone is staying busy. Look at the weekly rig count, 1 or 2 added or dropped, not 8-16 new rigs......

[Eric Gagen + 713]

8 hours ago, cbrasher1 said:

Ummm....where have you been all of last year?? Prices were high, nobody jumped and tried drilling into oblivion.  I believe the industry as a whole "maybe" has turned a corner, cleaning up red ridden balance sheets and returning money to shareholders.  They have been warned, no more of that drill baby drill shit, everything is slow and steady in the Permian, everyone is staying busy. Look at the weekly rig count, 1 or 2 added or dropped, not 8-16 new rigs......

Oil prices were NOT high last year - they had rebounded back to normal.  High is/would be yet to come.  

[nsdp + 449]

George Mitchell said it best: " There is no cure for high prices like high prices."