Apart from shale oil being an environmental catastrophe
it is also a financial disaster for USA

Forbes -
According to a report by Evercore ISI, shale operators have had cumulative negative cash flow of over $280 billion since 2007. U.S. banks and private equity firms, which have financed growth in the shale boom, are starting to ratchet back their support of shale firms as their balance sheets deteriorate.
Recent reporting indicates that over $140 billion in debt for the exploration and production sector is in danger of falling into the junk range, and the total is over $300 billion for associated gathering, processing, and transportation companies. The entire sector accounts for between 10 and 16 percent of all high yield debt on the market.
Since 2015 there have been over 400 bankruptcies in the entire industry, causing untold losses of shareholder value in publicly trade firms in addition to bond losses. Direct losses from bankruptcies are over $200 billion.

It is so toxic today that you can't give it away
the price just went negative

SternAAlbifrons wrote: ↑Tue Apr 21, 2020 12:57 amBut america still thinks the are their best buddy. Even after 9/11
- and then they get all shitty and antsy with their friends and allies who have followed them into every war, if we ever offer any critisism at all....

headscratch

It's not too difficult to figure out. It's all about money, plain as day. Money has always been a big part, but especially these last 20-30 years it's Only about money. Now we have the new administration taking even that to new levels. It'll be interesting to see where the next election takes us, regardless of who wins. Fun times.

Duncan wrote:Still bloody expensive if you compare it to a litre of milk, juice or cooking oil and you cannot even eat / drink the stuff.

But on the other hand , it's cheap if you compare the production cost and money invested in producing oil / petrol etc, as to what money is involved in producing milk, juice or cooking oil.

Last time I looked a liter of gas in Cambodia hovered around 4000 Riel ($1 dollar). Does a liter of milk or juice cost less than 4000 Riel or more than that? So is gas more bloody expensive than milk or juice?

Oil needs to be pumped from the ground, brought to a refinery, and then transformed into gas, kerosene, LNG, etc. Getting oil out of the ground is expensive, transporting to the refinery is expensive. The refinery is expensive. What lowers the price is economies of scale.

Milk could be a lot cheaper if 1 million cows could be milked in one location, and juice would be a lot cheaper if all the trees were gathered in one place for juicing.

Oil is one of the cheapest products out there.
1 barrel of oil is 159 liters.

newkidontheblock wrote: ↑Tue Apr 21, 2020 3:52 pm

Duncan wrote:Still bloody expensive if you compare it to a litre of milk, juice or cooking oil and you cannot even eat / drink the stuff.

But on the other hand , it's cheap if you compare the production cost and money invested in producing oil / petrol etc, as to what money is involved in producing milk, juice or cooking oil.

Last time I looked a liter of gas in Cambodia hovered around 4000 Riel ($1 dollar). Does a liter of milk or juice cost less than 4000 Riel or more than that? So is gas more bloody expensive than milk or juice?

Oil needs to be pumped from the ground, brought to a refinery, and then transformed into gas, kerosene, LNG, etc. Getting oil out of the ground is expensive, transporting to the refinery is expensive. The refinery is expensive. What lowers the price is economies of scale.

Milk could be a lot cheaper if 1 million cows could be milked in one location, and juice would be a lot cheaper if all the trees were gathered in one place for juicing.

Oil is one of the cheapest products out there.
1 barrel of oil is 159 liters.

Getting oil out of the ground is not expensive, unless you are forcing it out with water or trying to extract it from tar sand. If you have a pipe it is not expensive to ship to the refinery, and refineries benefit from the economies of scale. Which is why the Saudis can get it out the ground for less than $20 a barrel, and the US Frackers and Canadians can't. Which is why the Saudis turn on the pumps when oil prices are low, so they can fuck everyone into the dust. Takbir! Enjoy your sore arsehole, America.

I guess the low oil price isn't going to help the transition to EVs.. at least in the short term. How dare you..Greta would say

The US just found a massive reserve next to an existing pipeline up north....huge amount of oil and easy to access.
If a country only had oil and could pump it cheaper it only makes sense to do it...
I have 0 love for the saudis...but business is business.
The USA doesn't need them..
They once again proved they were untrustworthy when a saudi flight student killed people in Florida and got the entire saudi class booted out of the training program.
There is a power struggle going on in saudi arabia and some poor choices are being made.
Russia has nothing but oil and gas and sure cannot survive on the present price of oil.
The only reason the USA has kept supporting the Saudis is they are the enemy of Iran..Sunni vs Shia.
We will see who is still standing next year.

What do you think are the chances of the following scenario playing out:

- US Federal Govt increases subsidies and funding for US Shale for the next 5-10+ years in order to protect US Oil production under the guise of the US's national security strategy
- Even greater over supply of oil for the world economy going into the future.

BR549 wrote: ↑Mon Apr 20, 2020 10:22 pm Yes, when the entire world is closed and opec countries keep pumping and pumping and tankers are floating around in the ocean like oil islands the price is going to tank.
I was thinking it costs about $40 a barrel to produce it.
China has put the domino principle to a test.
Reserves are being filled at cut rate prices and the glut continues.
Interesting that china does not produce this comodity but has caused this calamity.
I suspect they are buying a lot of oil.
Cashing in on their pandemic.
The same people that bought up the PPP gear around the world in January to take advantage of the pandemic they created before the world caught on.
I remember my pop paying 17 cents a gallon during a price war between rival stationa in the 60s and it was 19 cents usually....
The next year is going to be quite a ride.

Why is it mainly China's fault? There has been a price war between Saudi & Russia, also OPEC seems like dissolving. On top of that demand is down everywhere in the world, not only China.