Shale production is NOT STALLING this year NO PRICE SKYROCKETING

(edited)

Putting these ridiculous headlines out to pump oil prices is unethical.  I thought this sight was supposed to give objective, honest analysis re oil industry.  Posing a "What If" proposition disguised as honest analysis is disappointing. 

SHALE OIL SUPPLY IS EXPLODING.

Over 9,000 DUCs (Drilled but Uncompleted) wells in Shale country.  Even if rig count went to ZERO shale supply would INCREASE this year.  

Many small and midsize shale operators that thought oil would stay at $100 bbl going under.  Natural industry maturation cycle.  

Just one data point : The oil export terminal under construction by Carlyle Group in Corpus Christi will be able to load 2 MILLION BARRELS A DAY.  Completed in 2020.  They build it because their is a need. Many more export terminals being built or upgraded.  

Don't listen to OPECs desperate machinations.

Don't Listen to Cheerleaders pumping oil prices.  

Oil prices going up short term.  Longs should enjoy it.  This is your last hurrah .

 

Edited by JJCar
typo

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Permian needs to wait for pipelines to be completed before Tsunami  of oil hits the market.

 

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1 hour ago, JJCar said:

Putting these ridiculous headlines out to pump oil prices is unethical.  I thought this sight was supposed to give objective, honest analysis re oil industry.  Posing a "What If" proposition disguised as honest analysis is disappointing. 

SHALE OIL SUPPLY IS EXPLODING.

Over 9,000 DUCs (Drilled but Uncompleted) wells in Shale country.  Even if rig count went to ZERO shale supply would INCREASE this year.  

Many small and midsize shale operators that thought oil would stay at $100 bbl going under.  Natural industry maturation cycle.  

Just one data point : The oil export terminal under construction by Carlyle Group in Corpus Christi will be able to load 2 MILLION BARRELS A DAY.  Completed in 2020.  They build it because their is a need. Many more export terminals being built or upgraded.  

Don't listen to OPECs desperate machinations.

Don't Listen to Cheerleaders pumping oil prices.  

 

Not sure what side of the argument you are on sir. 

Where your post starts" Shale oil is exploding" to the end of your post.

Is that from an article or your own words?

I'm not an analyst, a trader, broker etc but I can tell you from hands on experience we've been that Red Queen for many years now and the pace we're running is maddening.

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(edited)

Yes maddening pace.  Its called "Free Market Economy" or "Capitalism".  The economy where competition and efficient means of production allow for competitive fair prices.  

Just like natural gas the world is starting to realize technology allows for fairly priced oil supply.  

The "Smart Money" realizes that the demand for oil will peak within 10 years.  Look at the full panic mode in the auto industry as they scramble to go electric.  When EVs are prevalent and reasonably priced (soon) some European and Asian countries will outlaw internal combustion engine vehicles going forward. Not my choice put I don't make their decisions.

Chevron, Exxon others are applying the technology to reduce costs to low $20s  . . .  going to teens.  They make more now than with oil in the$50s then when oil was in the $80s to $90s.  

The small/midsize shale operators burdened with debt because they thought oil would stay at $100 bbl or go higher will fail.  

Supply and Demand economics will prevail.  OPEC will crumble.  Oil producers are pumping at a maddening rate to get as much oil out at these prices rather than wait and get stuck with stranded resources or at least much lower prices from here. 

STRANDED OIL ASSETS

 

Edited by JJCar
typo

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