US Oil Production Will Be Fine With Lower Prices

Before Monday rolls around and the analysts start talking their book at CNBC and elsewhere, take a look at this short article on oil prices from Market Watch.

Moreover, this supposed floor reflects the “full cycle costs” of production, they said, arguing that this overlooks the fact that many producers in North Dakota, Texas and elsewhere have already acquired acreage, contracted rigs and even hedged crude prices.

“We think what counts at this stage is half-cycle costs,which are in the significantly lower band of $37 to $45 a barrel. This means that the floor is falling and may not be nearly as firm as the Saudi view assumes,”

There is probably no commodity or industry of of which the death of all or parts of it have been so routinely predicted and so consistently wrong. Most of the time the so-called experts overlook or don’t understand the technology of the industry, particularly the advancements in exploration and production. Someday, no doubt, someone is going to be right and the industry willfade away. You and I will be long forgotten when that happens.

Share

Related Posts

You can leave a response, or trackback from your own site.

3 Responses to “US Oil Production Will Be Fine With Lower Prices”

  1. It’s nearly impossible to find experienced peiple іn this particular topic, ƅut үou
    soound likᥱ you ҝnow what yoᥙ’re talking ɑbout!
    Tɦanks

    my weblg how to pick up women

  2. I’ve Ьeen exploring for a lіttle bit for any hiցh-quality articles
    оr weblog posts іn tbis sort οf house . Exploring іn Yahoo Ӏ ultimately stumbled upoln tɦis website.
    Reading thiѕ info So і’m happy tto ѕҺow thhat І’ve a very ϳust гight
    uncanny feeling Ⅰ found out just ѡҺat I needеd.

    I such a lߋt unquestionably wilⅼ makᥱ sᥙre to ɗon?t
    disregard thios website ɑnd provideѕ іt а loоk regularly.

    Allso visit mу web blog body language to attract men

  3. I’m still learning from ʏou, while I’m trying to reach
    my goals. I absolutely love reading all that is posted on your website.Keep tthe posets coming.

    I loved it!

Leave a Reply