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Shale Oil debacle

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          The Shale Industry I believe is on a slippery slope

  • It has not been able to generate much profitability for investors because the technology applied does not make operations feasible at lower prices.
  • When the prices are high, the rig count increases creating an oil surplus which drives down prices so it goes back to square one.
  • The cycle as described above has worn out investors so it is now harder to attract capital for the majority smaller operations.
  • OPEC is aware of these dilemmas especially with the previous point and has decided to chance cutting production without fear of losing market share.
  • Sanctions on Iraq and Venezuela are working in OPEC's favor.
Edited by Gerard Remy
grammar error
  • Upvote 2

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