Saudis Trying To Bust US Shale Oil Boom

[wackyjacky]

The US recently passed Saudi Arabia as the world's # oil producer, but the recovery costs are much higher. The real reason oil prices are sliding: "We've been here before. By "here," I mean Saudi Arabia throwing its weight around in the global oil markets and triggering what we can only call a kind of reverse oil shock as a result." This isn't the first time that Saudi Arabia, with the help of its friends in OPEC, has used the cartel to keep its own market clout more or less intact and its own revenues flowing, sacrificing higher prices to that end. If it succeeds, it can dampen investor enthusiasm for shale oil in the U.S. and starve companies of the capital they need, forcing them to shut down wells in response to lower prices."
"The consequences were particularly visible last Tuesday, when Saudi Arabia slashed the price at which it is willing to export crude oil to the United States, even as it boosted prices to buyers in Europe and Asia. That sent the benchmark U.S. crude oil price — West Texas Intermediate — skittering down to $76.45 a barrel, a level not reached in three years. Welcome back to the geopolitics of oil" LINK: http://theweek.com/article/index/271594 ... e-oil-boom

[frank lee bent]

They can too, with a production price of $4bbl on some fields up against the average for shale at $60 bbl cost.

[Digg3r]

I blame the general. We all knew he'd have ulterior motives...

[General Mackevili]

Dammit. Coming here is one thing, but I do NOT want to go back to the States to chase paper.

This news definitely concerned some expats living here. They scared this mirage might dry up sooner than later.

[StroppyChops]

It makes you wonder why ANY country capable of mining enough of it's own crude would enslave itself to a world supplier that was so polar opposite to itself in every respect.

[General Mackevili]

It makes you wonder why ANY country capable of mining enough of it's own crude would enslave itself to a world supplier that was so polar opposite to itself in every respect.

..., but the recovery costs are much higher...

[Duncan]

I'm a firm believer that the price of oil and one off the final products ,,namely petrol,,, is way too cheap, especially after deducting government taxes. Look at the cost of searching for oil/gas fields,, the cost of oil rigs and drilling, the costs of transport half way around the world and the cost of refineries ..Why is turps, meths, and other petroleum products sold by the liter, at the proper resale price and not petrol.
Now compare that with the costs of producing milk, orange juice etc, palm and olive , or even beer, and the final product price per liter.

[StroppyChops]

It makes you wonder why ANY country capable of mining enough of it's own crude would enslave itself to a world supplier that was so polar opposite to itself in every respect.

..., but the recovery costs are much higher...

Understood, but now consider the social costs... if certain middle Eastern countries weren't stupidly rich on black tea, would there be less modern warfare? Would IS exist?

[General Mackevili]

Would IS exist?

Yes. I think this whole region would be known as Islamic State.

[StroppyChops]

Would IS exist?

Yes. I think this whole region would be known as Islamic State.

But without tanks.