With Shale Oil Production Like This, Who Needs Trump?

No one is holding the US hostage over oil.. That's crazy..

I should have realized you didn't live in the US.



Brazil




Today, sugarcane cultivated in most countries with warm climes.

•Indonesia (33,700 TMT) ...
•Colombia (34,900 TMT) ...
•Mexico (61,200 TMT) ...
•Pakistan (63,800 TMT) ...
•Thailand (100,100 TMT) ...
•China (125,500 TMT) ...
•India (341,200 TMT) ...
•Brazil (739,300 TMT)

More items...



Top Sugarcane Producing Countries - WorldAtlas.com

www.worldatlas.com/articles/top-sugarcane-producing-countries.html

 

Nah I don't live in Brazil either but ~50% of Brazil is located within the same southern latitude bands.

 

Well, Brazil has decided to disregard any OPEC quotas.. so your ethanol would be competing with Petrobras.

Nov 4, 2016 - The Brazilian government on Friday reported that its oil and gas production rose to record levels in September with a total oil equivalent of 3.36 million barrels per day (bpd).

 

It 100% will, the first shale boom was when prices were over 100$, today it's booming when it's just over 50$. Lol, love American free economy)!! Who knows when Australia , NZ start shaleing bigy ?

 

We don't need the Malaysian Tapis oil either. We can go it alone with no need for oil from any other country. We can start up the sugarcane to ethanol production and then we will use the crop residue to produce methane (biogas). There's 2 sustainable revenue streams to undercut the Malaysian oil. Apart from this, we have around 4 billion barrels of oil reserves anyway, and one of the largest reserves of natural gas in the world. So we aren't worried about the Middle East or Malaysian oil for energy supply. Although the Middle East should be worried if we decide to stop supplying them with food because they don't grow much in those deserts.

 

The breakeven cost per barrel, on average, to produce Bakken shale at the wellhead has fallen to $29.44 in 2016 from $59.03 in 2014, according to consultancy Rystad Energy. It added that in terms of wellhead prices, Bakken is the most competitive of major U.S. shale players.Nov 30, 2016......

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So what country are you in.. and are you currently an oil producer?

 

It is a secret.

 

I should clarify my comment before where I said that the majority of Brazil's landmass is below the 10S latitude line. It would be close but I am unsure, looks to be within a margin of a few percent.

 

I have seen those numbers before, I have I question, if it's so cheap why is only make money on this? And which country is close to make money from shale ? Which is n2 today in cracking oil?

 

Until it becomes too expensive to extract, at which point it becomes an economic liability and whatever remains stays in the ground.
And it isn't just energy which oil provides:http://whgbetc.com/petro-products.pdf
Only 19.4 gallons from a 42 gallon drum of crude ends up as petrol; the rest goes into the above.
The next few decades should prove interesting.

 

Can't say I know the answer, but I think we are headed into another oil glut and prices stuck at around $50..

Have you studied Nicholai Kondratiev and the K Wave?

 

Strange that it doesn't include Russia, or isn't it a part of OPEC?

 

The situation with oil is complicated, but the bottom line is simple supply and demand.

For the simple bottom line we've got the traditional big players with conventional proven reserves that are extracted at low cost, mostly by fairly inefficient government-run oil companies which are guided by the authority's spending policy, so there's little incentive for prospecting and much focus on simply pumping away proven reserves, gaining market share and subsidies for domestic consumption. This is what led to the glut; the recession of 2008 slowed down the economy around the world, demand dropped, but national oil companies in petrostates kept up production and aggravated the situation to the point idle tankers are storing oil sitting off the coast of refineries while they wait for enough stockpiled oil to get consumed so they can offload their cargo. Major market trends are not analyzed by parastatal oil companies, they just follow their government's spending policies so it takes a while for them to reduce outputs that reflect diminishing demand.

The complicated part is in the cost of production, the cheapest is underground with known geology, this is the situation in the Gulf, Iran and Texas. Offshore is more expensive depending on depth, but fairly predictable and reliable, this is the case in the Gulf of Mexico and North Sea. Then you've got shale oil and those tar sands, both involve processes continuously improving outputs and lowering costs, but still the most expensive.

With oil at $100 a barrel shale oil, tar sands and deep water Arctic platforms are economically feasible and projects were advanced before the glut caught them up, sanctions against Russia and environmental concerns in the US and Canada halted expensive Arctic projects and shale oil production. Gradually the economy recovers, demand grows, stockpiles are depleted and the cost to produce shale oil or deep water drilling diminishes, these sources are brought online.

OPEC's parastatals have figured out the basic supply and demand rule, they've started reducing outputs, are watching to see if fellow members are complying with reductions so they can boost prices, they aren't all in complete compliance, some exceptions are applied, domestic problems in places like Venezuela or Libya impair compliance and production capacity, different government oil companies rely on specific markets which have differing rates of demand.

For non-parastatals the situation differs in that their valuation depends on known or proven reserves and the cost of production. Naturally they tend to exaggerate the value of their reserves and minimize their production costs. With shale and tar sands it's a whole new calculus, the processes are constantly extracting more and reducing costs, this greatly affects valuation which also depends on the forecasted price per barrel.

Unless parastatals operate independently from their government's spending policies, they'll become obsolete and vanish with the depletion of their proven reserves, this is happening in Mexico already, without a radical change in Venezuela the "bolivarian" parastatal may disappear too, politics are no way to run an oil company.

Decades from now we will only have oil companies which can deploy very efficient production processes and are able to respond quickly to market demand. Some parastatals are trying to do this already and associating with other oil companies for the technology, whether they can learn to be market savvy and operate independent of government policy remainst pending.

 

Saudi ARAMCO is the most efficient and fully integrated oil company in the world.

 

Well you are wrong, before occupation of Crimia you used to say : 'gasprom is bigger than Muscovy'...So where is gasprom today?

 

Was you adressing whom, exactly, right now? Me? In what I am wrong? That discussion of the fairness of rus, slavic, russian empire's, soviet or russian federation's politicians and scientist is not a topic of that thread? Or you wasn't talking to me and forgot to add quote to signify who you been adressing?

I am terribly sorry, if that is the case.

 

Yes, it takes more energy to extract the energy. It's a bridge fuel until we can find a better answer.

 

They just put out an IPO with a valuation five times higher than most oil experts estimate, an efficient and well-integrated oil company wouldn't have such disparate figures, they must be grossly overestimating their reserves and future pricing.

 

I read that.. however, the authors don't seem to know how reserves are estimated.

 

Still, what is the "negative influence" was done by the low prices oil ( the world is full of shale oil. ) and by the sanctions on the Russian economy? Specifically.
Tell me. I think it is interesting not only to me, but for not'Russians.

Let them rejoice.

 

You seem to be under the impression that Saudi oil will dominate the world market into the foreseeable future based on your own beliefs. Unfortunately for the Middle East, we have seen a drop in global oil proven reserve distribution from 59% in 1995 to 47% in 2015. Furthermore new technologies are rapidly coming online now in oil extraction, the renewables space, and also recycling. We are seeing commercial entities in the recycling of plastics, especially plastics-to-oil.

Aramco is way overvalued considering global future dynamics.

 

PS

Let the author of this topic will be glad.

 

https://en.wikipedia.org/wiki/Russian_financial_crisis_(2014–present)
There. A compact, brief information about the negative influence on economy.

I do not care, what kind of halfwit would be rejoicing over people having their quality of life drop, but I know that facts should be taken in consideration. Such as - presence of harmed economy. That we - citizens of RF - have to deal with.

Hm, what if Saudi will adjust their oil indutry to modern standarts too? If I understand correctly, they have a certain.. Reputation, is the correct word, I guess..? - that may help them winning deals in the future. Or such things are irrelevant in modern business, and on such scale?

 

It's all garbage. no one will read it.

Show me one here, but the most serious specific example.

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