With Shale Oil Production Like This, Who Needs Trump?

Fracking and directional drilling have been around for 40 years. US production costs are very high and there are NO economies of scale. Most US wells produce less than 50 barrels per day.

US producers need $65 a barrel to stay in business.

 

20 cents - this is a great bread. Bread at a higher price - a bread with bells and whistles. With cardamom with bran and other dietary and confectionery things. If you want to bet on this issue with experts of bread, go here and open the theme of bread..
http://www.forum-tvs.ru/index.php?showforum=2

 

My understanding is that the fracking boom brought a lot of players into the game on borrowed money. With the price drop, there has been a consolidation of the business, with some going bust and some selling out.

Those that have stayed have to keep producing to pay the bills, even if it means producing at a loss for now. That is why production is still high. This can't continue in the long term, however. Prices need to be higher or the fracking boom will go bust.

 

I looked at headlines of that forum, and find it being unfitting for serious discussions.

Not to mention that it is strictly russian, while I am interested also in opinions of foreigners. Am I clear enough?

 

I hope that the USA engineers will be able to reduce the cost of shale oil to $ 40

 

You obviously understand it.. If the ppb tumbles those producers will get hurt.

 

Clear.
And that you do not clear in my answer 53 ?

 

The US can do a deal with Venezuela, Russia and Canada if they must. Venezuela alone has greater oil reserves than Saudi Arabia.

 

The fact that you stated that common bread is great. It is not great, it spoils whithin day or two, it does not tastes good, it has a giant bubbles of empty space inside - need I to continue? I can, if you really wish to have that discussion here.

 

Venezuela 's oil production collapsed last year to a 13 year low. Canada and Russia have high lift costs.. and most Canadian oil is heavy sour crude like VZ.

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Venezuela 's oil production collapsed last year to a 13 year low. Canada and Russia have high lift costs.. and most Canadian oil is heavy sour crude like VZ.

 

Where did you buy this bread?

Do not buy there. Buy in ordinary store. Here.

 

First of all, it is not only me, who runs into this issue on constant basis, second, I do not buy it in only one store, and not only provided by one supplier, but results are always same. Considering that being a recent development, I say it serves as a valid example of negative influence of santions on the economy. One of many.

 

It won't take Venezuela long to ramp up production if needed. My country shouldn't be too concerned about Middle Eastern oil. The country I live in has enough land, fresh water, experience and technology to build up a massive sugarcane to ethanol industry to run all our vehicles. Also we have plenty of gas and coal.

 

VZ has no capital to ramp up anything.

 

February 13, 2017, 3:43 P.M. ET
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As OPEC Cuts Oil Output, Venezuela Owes China & Russia

Venezuela’s state-run oil company is months behind in shipping petroleum to China and Russia after getting $55 billion in loans or credit from them, according to a Reuters investigation.

A total of 45 shipments are late in their journeys to Russia and China for a “variety” of reasons, the report says. The lack of reciprocation establishes operational failures at Petroleos de Venezuela (PDVSA) and the “crippling impact on the country’s unraveling socialist economy,” Reuters writes. The calculations don’t even include any possible delays to Latin American and Caribbean trade partners. As of Jan. 31, PDVSA delayed at least 3.2 million barrels in total crude oil shipments to China as of Jan. 31, and roughly 5.5 million in refined products, according to a Reuters graphical display of Venezuela oil data.

Venezuela is a member of OPEC, the Organization of Petroleum Exporting Countries, which confirmed its promise to cut production with a 890,000 barrels-per-day drop in January versus December. More than half of the reduction came from Saudi Arabia. Libya and Nigeria were allowed to increase production, MarketWatch reports. Russia, while not in OPEC, agreed to reduce its output by 300,000 barrels per day (bpd) in the first half of 2017. But a separate Reuters story notes “Russian Energy Minister Alexander Novak has said it is critically important for Moscow to cut production, not exports.” And Stifel energy analysts write that “Russia exports show no sign of declines in January or February. Expectations are for rising exports through Spring as maintenance at its refineries peaks in the second quarter.”

Oil prices slipped nearly 2% and the United States Oil Fund (USO) was down 1.4% Monday, while the iShares MSCI Saudi Arabia Capped exchange-traded fund (KSA) was up 0.4%. The iShares Latin America 40 ETF (ILF) was up 0.6%.

The VanEck Vectors Russia ETF (RSX) was down 0.2%. Venezuela government bonds were among the holdings in the iShares JPMorgan USD Emerging Markets Bond ETF (EMB) and PDVSA bonds were among the holdings in the VanEck Vectors Emerging Markets High Yield Bond ETF (HYEM) as of Dec. 30, according to Morningstar.



http://blogs.barrons.com/emergingma...-cuts-oil-output-venezuela-owes-china-russia/

 

..."but results are always same. ".."it spoils whithin day or two, it does not tastes good, it has a giant bubbles of empty space inside "...... You have no luck in life or you are lying, like Baron Munchausen.

 

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The USA and Canada probably don't need oil from Venezuela anyway, they have plenty to last whilst technology develops. What are you talking about capital? Venezuela doesn't need to outlay any capital, all they need to do is speak to BP, Shell, Exxon etc!

The EU and UK are in a bit of a pickle. My country could probably provide enough ethanol for the UK. Which would be an attractive option for the British because they can trust us to always deliver as we are strong allies.

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It doesn't matter how low the cost of production is if nobody will buy it from you

 

Or we have an issue and you reject it because it does not fits your line of discussion.

 

I do not reject. My line of discussion is a straight line.

 

VZ nationalized their oil business in 1976 and they are a member of OPEC. Their oil business is in shambles and they are a poor risk for investment. They screwed over all the oil majors years ago.... and they have a terrible safety record.

When you say "my country" are you speaking of the US? You do know that the US oil companies are a BUSINESS, don't you?

Using food to make gasoline is the height of idiocy...

Venezuela officially nationalized its oil industry on 1 January 1976, and along with it came the birth of PDVSA.

Assets of ExxonMobil and ConocoPhillips were expropriated in 2007 after they declined to restructure their holdings in Venezuela to give PDVSA majority control, Total. Chevron, Statoil and BP agreed and retain minority interests in their Venezuelan projects.

Arriving at a settlement with ExxonMobil has proven difficult with Venezuela offering book value for ExxonMobil's assets and ExxonMobil asking for as much as $12 billion.

This and a number of other matters including the claims of ConocoPhillips remain before the World Bank’s International Centre for Settlement of Investment Disputes.[20] PDVSA has paid compensation for assets it has nationalized including $255 million paid to ExxonMobil on February 15, 2012 in compensation for nationalization of ExxonMobil's Venezuelan assets in 2007 and $420 million to be paid beginning in 2012 to U.S. firms Williams Cos Inc. and Exterran Holdings, Inc. for natural gas assets nationalized in 2009.

wiki

You should get woogs to explain the oil business to you.

 

I think Venezuela will be happy to put all that in the past and invite Shell, BP, Exxon etc etc in to ramp up production now.

I don't live in the USA. Using food for fuel isn't the height of idiocy if you have plenty of land, plenty of water and a low population. In fact it is the height of idiocy to have unproductive land. As I said we don't need Middle Eastern oil, we can grow enough sugarcane to produce ethanol for every vehicle in the country and even for the UK, dare I say.

 

We have a glut of crude oil on the market.. and you want to expand the glut with sugar cane and ethanol??????

 

So what. The point is that the West don't need to be held to ransom over Middle Eastern oil. Get the message now. If push comes to shove, we don't need the oil in the Middle East. In fact it is prudent to move away from business in the Middle East as they continually attempt to use their oil for leverage against the West.