Oil prices
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Douglas A McIntyre(Oil Price Crash a Blessing in Disguise for US Shale) US Energy Information Administration recently reported that oil production in the lower 48 state is stable, despite expected near term reductions in rig count. The report says, “Other keys factors include the efficiency of drilling…the rate of decline in production from existing wells, and changes in the amount of time between the start of drilling and the completion of the well” Today, thanks to rapid advances in drilling and information technology, it now takes no longer than 30 days to results. The need for transport to market has not dropped As producers become more efficient , the number of rigs required to yield the same amount of production naturally drops. So while the industry freely announces sensational rig count reductions, little to no impact on actual production is seen. That’s because the industry is taking this opportunity to shut down low performing rigs. Sean Farrell (SAUDI ARABIA CAN LAST EIGHT YEARS ON LOW OIL PRICES, SAYS FORMER ADVISER) Former adviser to SAUDI ARABIA has said the country can withstand eight years or more of low oil prices as tensions over the price slump simmered between the world’s biggest oil exporter and IRAN. “Saudi Arabia cab sustain these low oil prices for at least eight years. First, we have huge financial reserves of about 3 trillion Saudi Riyals. Second, Saudi Arabia is embarking now on rationalization its expenditure, trying to take all the fat out of the budget,” Tim Mullaney(OPINION: OPEC IS WRONG TO THINK IT CAN OUTLAST US ON OIL PRICES)
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Transcript of Oil prices
Douglas A McIntyre(Oil Price Crash a Blessing in Disguise for US Shale)
US Energy Information Administration recently reported that oil production in the lower 48 state is stable, despite expected near term reductions in rig count. The report says, Other keys factors include the efficiency of drillingthe rate of decline in production from existing wells, and changes in the amount of time between the start of drilling and the completion of the well
Today, thanks to rapid advances in drilling and information technology, it now takes no longer than 30 days to results.
The need for transport to market has not dropped
As producers become more efficient , the number of rigs required to yield the same amount of production naturally drops. So while the industry freely announces sensational rig count reductions, little to no impact on actual production is seen. Thats because the industry is taking this opportunity to shut down low performing rigs.Sean Farrell (SAUDI ARABIA CAN LAST EIGHT YEARS ON LOW OIL PRICES, SAYS FORMER ADVISER)Former adviser to SAUDI ARABIA has said the country can withstand eight years or more of low oil prices as tensions over the price slump simmered between the worlds biggest oil exporter and IRAN.
Saudi Arabia cab sustain these low oil prices for at least eight years. First, we have huge financial reserves of about 3 trillion Saudi Riyals. Second, Saudi Arabia is embarking now on rationalization its expenditure, trying to take all the fat out of the budget,
Tim Mullaney(OPINION: OPEC IS WRONG TO THINK IT CAN OUTLAST US ON OIL PRICES)But there are at least three big problems with this strategy. One, North American crude isnt as expensive to produce as it used to be. Two, theres more than you think in the pipeline to make it even cheaper. And third, OPEC nations, including Saudi Arabia , have squandered their edge in cheap oil supplies on welfare states rulers cant easily cut back.
Common wisdom was that it would cost at least $70 to $75 a barrel to produce.But data from the state of North Dakota says the average cost per barrel in Americas top oil state is only $42
