Shale Bloodbath?

[Illurion + 894]

13 hours ago, vad.mm said:

Мне кажется что ваша система кредитования бизнеса работает неправильно. Пример: компания разрабатывающая сланцы в отчётах показывает рост добычи и это единственный хороший момент, другое состоит в том что цена на нефть падает и в какой-то момент перестанет покрывать издержки добычи (не говоря уже о транспортировке и других сервисах). В последнем случае можно определённое время работать в убыток в надежде что ситуация на рынке изменится, но в текущей ситуации ждать этого не стоит благодаря Дональду Трампу который решил поссориться со всем миром, в частности обрушить цены на нефть. В таком случае банки не смогут бесконечно закрывать глаза на отрицательную доходность выданных кредитов, им просто придётся искать варианты хэджирования или страховки от банкротства кредитора. ОПЕК как картельная организация стабилизирует цены регулитуя добычу между своими членами и показывая ориентиры цены для других производителей, а Дональд хочет преследовать эту организацию. Так кто по вашему прав?

I am unable to read the message.   Could someone possibly translate this ?

[cbrasher1 + 272]

3 hours ago, Illurion said:

I am unable to read the message.   Could someone possibly translate this ?

Mne kazhetsya chto vasha sistema kreditovaniya biznesa rabotayet nepravil'no. Primer: kompaniya razrabatyvayushchaya slantsy v otchotakh pokazyvayet rost dobychi i eto yedinstvennyy khoroshiy moment, drugoye sostoit v tom chto tsena na neft' padayet i v kakoy-to moment perestanet pokryvat' izderzhki dobychi (ne govorya uzhe o transportirovke i drugikh servisakh). V poslednem sluchaye mozhno opredelonnoye vremya rabotat' v ubytok v nadezhde chto situatsiya na rynke izmenitsya, no v tekushchey situatsii zhdat' etogo ne stoit blagodarya Donal'du Trampu kotoryy reshil possorit'sya so vsem mirom, v chastnosti obrushit' tseny na neft'. V takom sluchaye banki ne smogut beskonechno zakryvat' glaza na otritsatel'nuyu dokhodnost' vydannykh kreditov, im prosto pridotsya iskat' varianty khedzhirovaniya ili strakhovki ot bankrotstva kreditora. OPEK kak kartel'naya organizatsiya stabiliziruyet tseny regulituya dobychu mezhdu svoimi chlenami i pokazyvaya oriyentiry tseny dlya drugikh proizvoditeley, a Donal'd khochet presledovat' etu organizatsiyu. Tak kto po vashemu prav? Show more It seems to me that your business lending system is not working properly. Example: a company developing slates in reports shows production growth and this is the only good point, the other is that the price of oil is falling and at some point will cease to cover the costs of production (not to mention transportation and other services). In the latter case, you can work at a loss for a certain time in the hope that the market situation will change, but in the current situation it is not worth waiting for this thanks to Donald Trump who decided to quarrel with the whole world, in particular, bring down oil prices. In this case, banks will not be able to endlessly close their eyes to the negative returns on loans issued, they will just have to look for hedging options or insurance against the lender’s bankruptcy. OPEC, as a cartel organization, stabilizes prices by regulating production between its members and showing price guidelines for other manufacturers, and Donald wants to pursue this organization. So who are you right?  

[NWMan + 89]

6 hours ago, J.mo said:

However, returns are returns, and money re-invested are taxes deferred, no? Sp, let's add together the rate of return, plus the additional percentage of taxes deferred on income. Oil and commodities are big business, ran by very intelligent people, with big money. They didnt get there by not making money or making I'll fated decisions. They wouldn't keep dumping billions If it were not turning a profit. Also, capital sitting is capital depreciating. A return is a return. I feel a lot of this crying wolf is hodge podge, just like any other business. No one ever admits they are making money, as sometimes it adds a negative perception. 

I'm in the retail gas business, insiders will tell you they dont make any money, cry wolf, all while padding that margin with illusion. Dont fall for it. None of us would be in any business if it weren't making money, or did not have a potential to make a sum at a point in time. Your length of return depends on how patient, and how large your money is, of course. 

Dont fall for the games.

Shale oil is amassing - When a shale oil well is poor and is not worth completing "it is being kept in reserve".  When production does not rise it is due to pipeline restrictions.  When they start to run out of targets the Geological survey come up with billions of barrels of continuous reserves.  Now when shale oil companies do make any money there are actually but its a secret. 

[DanilKa + 443]

On 12/22/2018 at 5:46 AM, vad.mm said:

Интересная ситуация с вашими сланцами: с одной стороны ваш президент отлично осведомлён о себестоимости добычи нефти в России, не говоря уже о себестоимости добычи в Саудовской Аравии которая ещё ниже, с другой стороны он должен быть прекрасно информирован во сколько обходится добыча даже на самых выгодных участках Пермского бассейна. Я понимаю что его мировозрение не различает Иран и "Исламское государство", так-же как все арабы - нынешние шейхи для него просто бедуины пустыни и выскочки, но неужели нелюбовь Трампа к России настолько велика, что он готов посадить всех сланцевиков в лужу или обанкротить ради того чтобы Россия чувствовала себя обделённой? Или это его,  Дональда боязнь критики со стороны демократов за слабое противодействие России. Думаю мало кто знает в США что во время войны с фашистской Германией в блокадном Ленинграде людям выдавали 125 граммов хлеба на человека в сутки из-за проблем со снабжением продуктами. Думаю ваш президент решил устроить блокаду Пермиан в мирное время, другого ответа просто не находится.

I'm pretty sure Trump doesn't give a crap about Russia. Nor he could control US oil production.

Not sure what Leningrad's blocade have to do with oil price and shale production. But people suffered there because Soviet leadership didn't see need to stockpile the food or deliver it.

[DanilKa + 443]

7 hours ago, Illurion said:

I am unable to read the message.   Could someone possibly translate this ?

I can read it but fail to understand

[DanilKa + 443]

Christmas greetings from @Mike Shellman to US shale industry:

https://www.oilystuffblog.com/single-post/2018/12/18/Christmas-Cheer-To-the-US-Shale-Oil-Industry

[NickW + 2,714]

11 hours ago, J.mo said:

However, returns are returns, and money re-invested are taxes deferred, no? Sp, let's add together the rate of return, plus the additional percentage of taxes deferred on income. Oil and commodities are big business, ran by very intelligent people, with big money. They didnt get there by not making money or making I'll fated decisions. They wouldn't keep dumping billions If it were not turning a profit. Also, capital sitting is capital depreciating. A return is a return. I feel a lot of this crying wolf is hodge podge, just like any other business. No one ever admits they are making money, as sometimes it adds a negative perception. 

I'm in the retail gas business, insiders will tell you they dont make any money, cry wolf, all while padding that margin with illusion. Dont fall for it. None of us would be in any business if it weren't making money, or did not have a potential to make a sum at a point in time. Your length of return depends on how patient, and how large your money is, of course. 

Dont fall for the games.

Investment funds are finite, even for the big boys.

If you get a return of 20-30% PA on deep water for example compared to say a <10% on shale then assuming you have the deep pockets to see you throught the development phase deep water will give you a better return hence the reason the supermajors have not heavily invested in shale. 

[Illurion + 894]

11 hours ago, cbrasher1 said:

Mne kazhetsya chto vasha sistema kreditovaniya biznesa rabotayet nepravil'no. Primer: kompaniya razrabatyvayushchaya slantsy v otchotakh pokazyvayet rost dobychi i eto yedinstvennyy khoroshiy moment, drugoye sostoit v tom chto tsena na neft' padayet i v kakoy-to moment perestanet pokryvat' izderzhki dobychi (ne govorya uzhe o transportirovke i drugikh servisakh). V poslednem sluchaye mozhno opredelonnoye vremya rabotat' v ubytok v nadezhde chto situatsiya na rynke izmenitsya, no v tekushchey situatsii zhdat' etogo ne stoit blagodarya Donal'du Trampu kotoryy reshil possorit'sya so vsem mirom, v chastnosti obrushit' tseny na neft'. V takom sluchaye banki ne smogut beskonechno zakryvat' glaza na otritsatel'nuyu dokhodnost' vydannykh kreditov, im prosto pridotsya iskat' varianty khedzhirovaniya ili strakhovki ot bankrotstva kreditora. OPEK kak kartel'naya organizatsiya stabiliziruyet tseny regulituya dobychu mezhdu svoimi chlenami i pokazyvaya oriyentiry tseny dlya drugikh proizvoditeley, a Donal'd khochet presledovat' etu organizatsiyu. Tak kto po vashemu prav? Show more It seems to me that your business lending system is not working properly. Example: a company developing slates in reports shows production growth and this is the only good point, the other is that the price of oil is falling and at some point will cease to cover the costs of production (not to mention transportation and other services). In the latter case, you can work at a loss for a certain time in the hope that the market situation will change, but in the current situation it is not worth waiting for this thanks to Donald Trump who decided to quarrel with the whole world, in particular, bring down oil prices. In this case, banks will not be able to endlessly close their eyes to the negative returns on loans issued, they will just have to look for hedging options or insurance against the lender’s bankruptcy. OPEC, as a cartel organization, stabilizes prices by regulating production between its members and showing price guidelines for other manufacturers, and Donald wants to pursue this organization. So who are you right?  

Thank you.

[Illurion + 894]

On 12/22/2018 at 7:32 AM, vad.mm said:

a translation of what you wrote per another member:  (thanks CBrasher1)

Show more It seems to me that your business lending system is not working properly. Example: a company developing slates in reports shows production growth and this is the only good point, the other is that the price of oil is falling and at some point will cease to cover the costs of production (not to mention transportation and other services). In the latter case, you can work at a loss for a certain time in the hope that the market situation will change, but in the current situation it is not worth waiting for this thanks to Donald Trump who decided to quarrel with the whole world, in particular, bring down oil prices. In this case, banks will not be able to endlessly close their eyes to the negative returns on loans issued, they will just have to look for hedging options or insurance against the lender’s bankruptcy. OPEC, as a cartel organization, stabilizes prices by regulating production between its members and showing price guidelines for other manufacturers, and Donald wants to pursue this organization. So who are you right?  

VAD.MM

If the translation is correct,  you are attacking capitalism in America, and President Trumps attempts to restore the American economy,  while you state that OPEC is a good thing for the world ?

I do not agree with you.   Here is my reasoning.   I will try to address your highlighted remarks.

(1)   Just because there are regular cycles,  and permanent changes in the markets does not mean that our "BUSINESS LENDING SYSTEM IS NOT WORKING PROPERLY."    A business that cannot adapt to changes in their "COST OF PRODUCTION" deserves to go out of business.   With that said,   our politicians have over the last 30 years,  done much damage to our own economy,  by passing laws, and arbitrary rules that INTERFERE WITH THE MARKET.   President Trump is working to remove those laws and arbitrary rules.

(2)   President Trump does not work for the WHOLE WORLD,   and is not "QUARRELING WITH THE WHOLE WORLD".   He is working to bring back to the USA all of the jobs, and cash investment, that left our country for other countries  (MOSTLY CHINA & THE MIDDLE EAST) since the DESTABILIZING AFFECTS of the BAD TRADE AGREEMENTS created since 1992 , like  NAFTA, WTO, IMF, GATT, and the GLOBAL WARMING TRANSFER CREDIT nonsense,  etc,   and the creation of OPEC in the mid-1970's.    President Trump is doing his job.

(3)   President Trump works for the PEOPLE OF THE UNITED STATES OF AMERICA.  OPEC has for over 40 years artificially kept gasoline prices far too high.  DRAINING THE CASH BLOOD OF AMERICA LIKE A VAMPIRE WOULD.   Those high prices ARE NOT IN THE INTEREST OF THE PEOPLE OF THE UNITED STATES OF AMERICA,  which is why President Trump has been doing everything he can to "BRING DOWN OIL PRICES". 

(4)  Banks could use various hedging options or insurance,  or better yet,  they could do their "due diligence" fully,  and not issue loans to companies that operate with HIGHER PROBABILITIES of "NEGATIVE RETURNS."    By LAW,  that is the Banks "FIDUCIARY RESPONSIBILITY."

(5)  OPEC IS A MONOPOLY.   IT IS ANTI-MARKET.    IT DOES NOT STABILIZE PRICES,   "IT HOLDS PRICES HOSTAGE."   IT ONLY "STABILIZES PRICES" TO THE EXTENT THAT IT MAKES THE OPEC NATIONS RICHER AT THE EXPENSE OF ALL OTHER NATIONS OF THE WORLD....!    So,  YES,   American President Trump is doing everything he can to "PURSUE THIS ORGANIZATION" and free the USA from the monopolistic grip of OPEC.   

 

In conclusion,   it is OPEC THAT HAS BEEN "QUARRELING WITH THE WHOLE WORLD" ,  AND HOLDING THE WORLD HOSTAGE,  FOR THE LAST 40 YEARS BY ENRICHING THEMSELVES THROUGH ARTIFICIALLY HIGH OIL PRICES.      NOT PRESIDENT TRUMP.

And it appears that Russia is on the side of OPEC.

So,  it is PUTIN that is quarreling with the whole world.

 

Have a nice day,  and Merry Christmas.

Edited December 23, 2018 by Illurion

[NWMan + 89]

President Trump has tweed that the price of oil was reduced by him.  He told OPEC that they needed to produce more oil because of up coming sanctions again Iran and then gave out exceptions.  So when Trump deliberately reduces the price of oil that's OK, he is not involved in price manipulation.

Trump wants money or oil for nothing.  His and America's desire for cheap oil now, will led to a massive increase in the price of oil.  They are adding to the market their highly limited 4 mbopd of un-profitable oil which is reducing the price and the investment in oil.   In the near future when the world requires 100 mbopd, the oil traders will finally wake up and ask where do they thing it is going to come from.  There is no offshore investment, numerous American offshore field will be coming off platform production soon.  The EIA has warned time and time again about an oil crunch due to the lack of investment.

Concerning OPEC - America appear to hate OPEC and is always talking about the end of OPEC.  The reality is OPEC has just got far stronger as OPEC plus.  Most of the producers in the world think it is a good idea to have a strategic plan for the price of oil apart from America.   America has blow away it entire oil reserves and is now producing oil at a loss!  I want's OPEC countries to give it their reserves for a few dollars. 

Maybe the considered actions of a group of counties working together to best manage the most important resource the world is better than an oil price dictated by a rude, greedy, idiotic, child, firing off tweets.

  

[Tomasz + 1,608]

You should check shale oil proven reserves.

For the time being you can produce oil at most shale basins for something like 5 to 7 year and only in Permian for a little longer.

If  I were OPEC I would allow shale drilles to maximalize output and wait until 2025 at the latest to grab my fair share in the market with quite a higher price.

There is of course risk of green energy expanding rapidly but I think its best strategy to live with shale that has rather very low oil reserves in comparison with current production rate and should  cease to exist or at least peak during next decade. 

But maybe its just because Im  fan of Art Berman because this man looks honest and candid to me when we compare him with other oil analyst.

Edited December 25, 2018 by Tomasz

[NWMan + 89]

I believe that there are apparently a large amount of what have been described as "shale oil proven reserves" but in any definition (American or London stock exchange definitions) reserves are only categorized as proven when it is proven that they can be produced economically i.e. at a profit. 

[Uvuvwevwevwe Onyetenyevwe Ugwemuhwem Osas + 96]

On 12/24/2018 at 9:15 AM, NWMan said:

President Trump has tweed that......

President Trump has tweed that the price of oil was reduced by him
And you believe everything Trump tweets?  LoL

He told OPEC that they needed to produce more oil
Trump gives orders to OPEC??

then gave out exceptions
Exceptions require no effort at all.  It just means, business-as-usual with Iran.

So when Trump deliberately reduces the price of oil
Nonsense.

So when Trump deliberately reduces the price of oil that's OK, he is not involved in price manipulation
You don't understand the context of "price manipulation".  All or almost all political decisions have some effect on markets.
The reason you used the word "price manipulation" is because it seems like a powerful word for condemning Trump.

Trump wants money or oil for nothing
https://www.youtube.com/watch?v=JRDgihVDEko

His and America's desire for cheap oil now
Hello, Mr. Russian Troll.

will led to a massive increase in the price of oil
Nonsense.

America appear to hate OPEC
http://mesazhi.com/wp-content/uploads/2018/09/gas-696x470.jpg

The reality is OPEC has just got far stronger as OPEC plus
Yup. They added "plus" to their name.  That's a powerful upgrade!

Most of the producers in the world think it is a good idea to have a strategic plan for the price of oil apart from America
Stop selling oil to "America" if it bothers you.  If not, then you only have yourselves to blame.

America has blow away it entire oil reserves
Are you a stand-up comedian in real life?  because you humor is outstanding!  America is doomed! rofl

I want's OPEC countries to give it their reserves for a few dollars
Stop exporting your precious Russian oil if it bothers you.  No one is forcing Russia to export oil.

Maybe the considered actions of a group of counties working together to best manage the most important resource the world is better than an oil price dictated by a rude, greedy, idiotic, child, firing off tweet
You might want to look for a new job.
https://themoscowtimes.com/news/infamous-st-petersburg-troll-farm-set-on-fire-63130

Edited December 25, 2018 by Uvuvwevwevwe Onyetenyevwe Ugwemuhwem Osas

[NWMan + 89]

Thanks for your highly aggressive response.  I think the point was American for some reason hates OPEC and your reaction appears to confirms this!

Trump gives orders to OPEC?? -  Trump does give orders to Russia and OPEC.  He recently told Russia it should produce more oil even though he has targeted the Russian oil industry with sanctions.

The point is America and Trump complain about OPEC's manipulation of the price but they also try and manipulate the oil price.  .

Most people would consider the addition of Russia to OPEC as significant.

Just one other point, I am not from Russia and I don't think, I mentioned Russia in the original post.

[Uvuvwevwevwe Onyetenyevwe Ugwemuhwem Osas + 96]

51 minutes ago, NWMan said:

I think the point was......

I think the point was American for some reason hates OPEC and your reaction appears to confirms this
You know nothing about the history of OPEC.  Here's the Russian translation for you.
https://ru.wikipedia.org/wiki/Нефтяной_кризис_1973_года

Trump does give orders to Russia and OPEC.  He recently told Russia it should produce more oil even though he has targeted the Russian oil industry with sanctions
That is not an order, comrade.  That is a request.  Trump can not give orders to Putin.
https://en.oxforddictionaries.com/definition/order
https://en.oxforddictionaries.com/definition/request

The point is America and Trump complain about OPEC's manipulation of the price but they also try and manipulate the oil price
US "manipulates" the price of oil by producing more oil.
OPEC "manipulates" the price of oil by producing less oil.
This is why people love "America" and hate OPEC.
OPEC = mafia
Putin = mafia

I am not from Russia and I don't think, I mentioned Russia in the original post
Don't lie to me.  You are a paid Russian troll.  This thread is full of Russians.
If you want to have an honest discussion, then let's do it.
But get out of here with your political propaganda.

Edited December 25, 2018 by Uvuvwevwevwe Onyetenyevwe Ugwemuhwem Osas

[NWMan + 89]

Ok - you got me, my real name is Boris and I hate America because you have all the hot woman!

[Rasmus Jorgensen + 1,169]

On 12/23/2018 at 11:53 AM, NickW said:

Investment funds are finite, even for the big boys.

If you get a return of 20-30% PA on deep water for example compared to say a <10% on shale then assuming you have the deep pockets to see you throught the development phase deep water will give you a better return hence the reason the supermajors have not heavily invested in shale. 

It is not really that simple due to the short cycle nature of shale. If we take your Deepwater example - whilst the calculated 20% - 30 % return is probably right it needs to be noted that this is over 20 - 30 year lifetime of the FPSO. So, if 10 years into the investment it turns out that oil tanks because renewables get massively cheaper or something else, then the 20% - 30 % does not materialize. The risk factor needs to be considered. 

[AlexF + 12]

On 12/22/2018 at 1:42 AM, Illurion said:

In finance,  your portfolio balance MUST ALWAYS BE GROWING,  OR THE PERCENTAGE OF LOSS WILL INCREASE.

Hi Illrion,  When you mention that your portfolio must be growing, is it to increase mitigation ? If not why is that ?

Regards

[Will_K + 2]

 

Quote

On ‎12‎/‎22‎/‎2018 at 4:58 PM, J.mo said:

They wouldn't keep dumping billions If it were not turning a profit. Also, capital sitting is capital depreciating. A return is a return.

 

Overall, that isn't a bad gesture toward the industry especially with how much has changed in the past 10 years. Sure, returns are returns, but if the source of capital funding a majority of our shale sector isn't seeing enough of this return, how long does patience last? The somewhat blind confidence in the notion that these players will get back to even and then into profit (with stakeholders paid) is a bit troubling to me with the uncertainty of shale's longevity. Promising to pay back debt 5, 10 or even 20 years down the line in the age of shale is a massive gamble.

[Dan Warnick + 6,100]

20 minutes ago, Will_K said:

 

Overall, that isn't a bad gesture toward the industry especially with how much has changed in the past 10 years. Sure, returns are returns, but if the source of capital funding a majority of our shale sector isn't seeing enough of this return, how long does patience last? The somewhat blind confidence in the notion that these players will get back to even and then into profit (with stakeholders paid) is a bit troubling to me with the uncertainty of shale's longevity. Promising to pay back debt 5, 10 or even 20 years down the line in the age of shale is a massive gamble.

OPM

[Timothy Powell + 1]

On 12/22/2018 at 8:28 AM, Selvedina said:

Hello @vad.mm and welcome to OP. Per community guidelines, let's keep the posts in English-only so everyone can join in!

Google Translate:

It seems to me that your business lending system is not working properly. Example: a company developing slates in reports shows production growth and this is the only good point, the other is that the price of oil is falling and at some point will cease to cover the costs of production (not to mention transportation and other services). In the latter case, you can work at a loss for a certain time in the hope that the market situation will change, but in the current situation it is not worth waiting for this thanks to Donald Trump who decided to quarrel with the whole world, in particular, bring down oil prices. In this case, banks will not be able to endlessly close their eyes to the negative returns on loans issued, they will just have to look for hedging options or insurance against the lender’s bankruptcy. OPEC, as a cartel organization, stabilizes prices by regulating production between its members and showing price guidelines for other manufacturers, and Donald wants to pursue this organization. So who are you right?

 

[Steve Smith + 1]

On 12/23/2018 at 12:01 PM, Illurion said:

VAD.MM

If the translation is correct,  you are attacking capitalism in America, and President Trumps attempts to restore the American economy,  while you state that OPEC is a good thing for the world ?

I do not agree with you.   Here is my reasoning.   I will try to address your highlighted remarks.

(1)   Just because there are regular cycles,  and permanent changes in the markets does not mean that our "BUSINESS LENDING SYSTEM IS NOT WORKING PROPERLY."    A business that cannot adapt to changes in their "COST OF PRODUCTION" deserves to go out of business.   With that said,   our politicians have over the last 30 years,  done much damage to our own economy,  by passing laws, and arbitrary rules that INTERFERE WITH THE MARKET.   President Trump is working to remove those laws and arbitrary rules.

(2)   President Trump does not work for the WHOLE WORLD,   and is not "QUARRELING WITH THE WHOLE WORLD".   He is working to bring back to the USA all of the jobs, and cash investment, that left our country for other countries  (MOSTLY CHINA & THE MIDDLE EAST) since the DESTABILIZING AFFECTS of the BAD TRADE AGREEMENTS created since 1992 , like  NAFTA, WTO, IMF, GATT, and the GLOBAL WARMING TRANSFER CREDIT nonsense,  etc,   and the creation of OPEC in the mid-1970's.    President Trump is doing his job.

(3)   President Trump works for the PEOPLE OF THE UNITED STATES OF AMERICA.  OPEC has for over 40 years artificially kept gasoline prices far too high.  DRAINING THE CASH BLOOD OF AMERICA LIKE A VAMPIRE WOULD.   Those high prices ARE NOT IN THE INTEREST OF THE PEOPLE OF THE UNITED STATES OF AMERICA,  which is why President Trump has been doing everything he can to "BRING DOWN OIL PRICES". 

(4)  Banks could use various hedging options or insurance,  or better yet,  they could do their "due diligence" fully,  and not issue loans to companies that operate with HIGHER PROBABILITIES of "NEGATIVE RETURNS."    By LAW,  that is the Banks "FIDUCIARY RESPONSIBILITY."

(5)  OPEC IS A MONOPOLY.   IT IS ANTI-MARKET.    IT DOES NOT STABILIZE PRICES,   "IT HOLDS PRICES HOSTAGE."   IT ONLY "STABILIZES PRICES" TO THE EXTENT THAT IT MAKES THE OPEC NATIONS RICHER AT THE EXPENSE OF ALL OTHER NATIONS OF THE WORLD....!    So,  YES,   American President Trump is doing everything he can to "PURSUE THIS ORGANIZATION" and free the USA from the monopolistic grip of OPEC.   

 

In conclusion,   it is OPEC THAT HAS BEEN "QUARRELING WITH THE WHOLE WORLD" ,  AND HOLDING THE WORLD HOSTAGE,  FOR THE LAST 40 YEARS BY ENRICHING THEMSELVES THROUGH ARTIFICIALLY HIGH OIL PRICES.      NOT PRESIDENT TRUMP.

And it appears that Russia is on the side of OPEC.

So,  it is PUTIN that is quarreling with the whole world.

 

Have a nice day,  and Merry Christmas.

Boy, this is so simplistic I'm not going to bother with further reply other than pointing out how simplistic it is.

[Tom Kirkman + 8,860]

On 12/25/2018 at 8:43 PM, NWMan said:

I believe that there are apparently a large amount of what have been described as "shale oil proven reserves" but in any definition (American or London stock exchange definitions) reserves are only categorized as proven when it is proven that they can be produced economically i.e. at a profit. 

^ this.

[Tomasz + 1,608]

So some of you want to target Russia with sanctions and demand russian cooperation in oil prices at the some time.

And probably you want some OPEC countries to come to terms with the fact that US can unilaterally put sanctions on Iran and demand from other OPEC countries to supplement missing barrels so the they may one day expect sanctions on them without no reason. If it is a cartel it should be all for one and one for all. It of course will not be this situation but oil crisis in the 70s show there is a least some solidarity within this countries.

I know USA is exceptional nation but this is schizophrenic.

Apart from the fact you put sanctions on China, Russia, Iran, Turkey, Pakistan and probably some more countries so you put sanctions on half of emerging big markets in the world.

A price for that will be forced dedollarization of world economy and imho  it wont end nice for America in a future. Because natural defence to US sanctions is dedollarization of economy which you can  for example see in russian-chinese relations. I think we can also see iranian oil  sold in some other currencies and it will be slowly a snowball effect in countries under sanctions and number of these countries is growing.

In a situation of current 1.4 trillion $ deficit and big trade deficit in looming cold war with China  which has something like 3 trillons of US bonds it looks rather dangerous for US economy. 

Edited December 29, 2018 by Tomasz

[Bmenhorn1 + 1]

Shale wells in the Permian generate ~50% returns at $50 oil.