1 of 1- Common Sense
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Half of US shale drillers may go bankrupt: Oppenheimer's Gheit
Looks like our big energy boom is going bust?
But $2 a gallon gas is nice for the consumer and it looks like it is heading lower.
Half of US shale drillers may go bankrupt: Oppenheimer's Gheit
Half of U.S. shale oil producers could go bankrupt before the crude market reaches equilibrium, Fadel Gheit, said Monday.The senior oil and gas analyst at Oppenheimer & Co. said the "new normal oil price" could be 50 to 100 percent above current levels. He ultimately sees crude prices stabilizing near $60, but it could be more than two years before that happens.
By then it will be too late for many marginal U.S. drillers, who must drill into and break up shale rock to release oil and gas through a process called hydraulic fracturing. Fracking is significantly more expensive than extracting oil from conventional wells. "Half of the current producers have no legitimate right to be in a business where the price forecast even in a recovery is going to be between, say, $50, $60. They need $70 oil to survive," he told CNBC's
“We hold these truths to be self-evident,” former vice president Biden said during a campaign event in Texas on Monday. "All men and women created by — you know, you know, the thing.”
- tennyson
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Re: Half of US shale drillers may go bankrupt: Oppenheimer's Gheit
Some likely will face bankruptcy before this is over, but the bigger mistake may be by the Saudis themselves who are responsible for a lot of the downturn in prices by continuing to pump more oil into the pipeline(s).
The article says they have miscalculated in thinking they can drive the shale oil producers away and have themselves made a $1 Trillion mistake. The Saudis have some deep pockets, but this is going to stretch those pockets to the point it might create an unstable Saudi Arabia which could lead to even bigger troubles in the Middle East for the Sunni/Shite fueds.
"Do not confuse motion and progress, A rocking horse keeps moving but does not make any progress"