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Oil at $75 Means Patches of Texas Shale Turn Unprofitable

DA60

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'With crude at $75 a barrel, the price Goldman Sachs Group Inc. says will be the average in the first three months of next year, 19 U.S. shale regions are no longer profitable, according to data compiled by Bloomberg New Energy Finance.'

Oil at $75 Means Patches of Texas Shale Turn Unprofitable - Bloomberg

Shale Profits at Risk - Bloomberg


I (and others) have said for a while that shale oil is not the dream solution that the media is making it out to be.

What is shale oil?
 
There is real reason this is happening, and you can largely point to OPEC. What is so amazing about this is we have 1-2 threads elsewhere in DP talking about oil manipulation ability based on ownership and the entity in question... and here we are with a clear cut reason why Oil for the 2014 Dec, and most of 2015 outlook, is below the breakeven price for Shale Oil requires to be worth the effort.

You cannot help but shake your head at what is happening, why, and what others think is the reason.
 
'With crude at $75 a barrel, the price Goldman Sachs Group Inc. says will be the average in the first three months of next year, 19 U.S. shale regions are no longer profitable, according to data compiled by Bloomberg New Energy Finance.'

Oil at $75 Means Patches of Texas Shale Turn Unprofitable - Bloomberg

Shale Profits at Risk - Bloomberg


I (and others) have said for a while that shale oil is not the dream solution that the media is making it out to be.

Of course it's a dream solution. The cost of crude will return to levels that will allow shale derived oil to return to profitability.
 
Shale will end up being like peak power plants that come online only when demand is high, but in this case, when prices are high.
 
Part of the reason the Saudi's are selling their product so cheap is to target the Russian economy.

Put Putin back in his place I suppose.

And yes, it would seem they're trying to put shale out of Bussinesses too.
 
Part of the reason the Saudi's are selling their product so cheap is to target the Russian economy.

Put Putin back in his place I suppose.

And yes, it would seem they're trying to put shale out of Bussinesses too.

If only that Obama had allowed more drilling.
 
Is this a thread decrying the fact that oil companies control value, as opposed to supply and demand, or one that is supposed to be supporting the theory of supply and demand?
 
Now you know why america is going back into the ME. There is no way more soldiers is going to improve stability. And so, more soldiers will die so somebody can make a profit in texas.
Strangely enough these capitalists have no trouble sleeping at night. Maybe if they were forced to count their dividends in body bags...?
 
Now you know why america is going back into the ME. There is no way more soldiers is going to improve stability. And so, more soldiers will die so somebody can make a profit in texas.
Strangely enough these capitalists have no trouble sleeping at night. Maybe if they were forced to count their dividends in body bags...?
Hate to interrupt your Michael Moore impression, but did you know that crude prices were in triple digits when we began our reengagement (bombing campaign and US personnel on the ground) in the Middle East?


Spot Prices for Crude Oil and Petroleum Products
 
If only that Obama had allowed more drilling.


You DO realize the VAST MAJORITY of all this shale exploration is being done on private property, right ?

Wait, you weren't one of those people that were sucked in Obama's promises of opening up more Federal lands for Natural gas exploration were you ?

Remember ? His promises je made in Colorado prior to his re-election ?

Lol ! You were weren't you ?

How embarrassing
 
Of course it's a dream solution. The cost of crude will return to levels that will allow shale derived oil to return to profitability.

And at that time, you would never complain about the price of gas, amirite?
 
'With crude at $75 a barrel, the price Goldman Sachs Group Inc. says will be the average in the first three months of next year, 19 U.S. shale regions are no longer profitable, according to data compiled by Bloomberg New Energy Finance.'

Oil at $75 Means Patches of Texas Shale Turn Unprofitable - Bloomberg


Shale Profits at Risk - Bloomberg



Does this mean the government will have to increase subsidies to the oil companies? :monkey



I (and others) have said for a while that shale oil is not the dream solution that the media is making it out to be.

And right you are. The Big Oil spin will be interesting to watch.
 
'With crude at $75 a barrel, the price Goldman Sachs Group Inc. says will be the average in the first three months of next year, 19 U.S. shale regions are no longer profitable, according to data compiled by Bloomberg New Energy Finance.'

Oil at $75 Means Patches of Texas Shale Turn Unprofitable - Bloomberg

Shale Profits at Risk - Bloomberg


I (and others) have said for a while that shale oil is not the dream solution that the media is making it out to be.

Maybe the governor will use state time and resources in leading everyone to pray for higher prices....because it worked so well when he did it to end the drought.....
 
Its not all OPEC that is reducing oil prices, a lot of it is greater efficiency in the US auto fleet:

EDI_mpg_October-2014.png


Those much maligned CAFE standards are actually saving more oil than we are bringing to market with tight oil like shale and tar sands.
 
'With crude at $75 a barrel, the price Goldman Sachs Group Inc. says will be the average in the first three months of next year, 19 U.S. shale regions are no longer profitable, according to data compiled by Bloomberg New Energy Finance.'

Oil at $75 Means Patches of Texas Shale Turn Unprofitable - Bloomberg

Shale Profits at Risk - Bloomberg


I (and others) have said for a while that shale oil is not the dream solution that the media is making it out to be.

Shale oil helped bring gas prices down to 2.50 a gallon (where I'm at). I'd call that a good thing.
 
Its not all OPEC that is reducing oil prices, a lot of it is greater efficiency in the US auto fleet:

EDI_mpg_October-2014.png


Those much maligned CAFE standards are actually saving more oil than we are bringing to market with tight oil like shale and tar sands.

They are maligned because they cost people their lives and limbs. I drive an "egg carton" because I want to. But some are forced into it. This is yet another example of a government intruding into areas it never should have. In fact, it has no Constitutional authority to intrude.
 
They are maligned because they cost people their lives and limbs. I drive an "egg carton" because I want to. But some are forced into it. This is yet another example of a government intruding into areas it never should have. In fact, it has no Constitutional authority to intrude.

That is absurd. Today vehicles are safer than ever before. There is a greater variety in choice than ever before. Trucks are stouter and can pull more than ever before. Sports cars are faster than ever before. You can get better off road capability in Jeeps, Land Rovers, and Toyota FJ-Cruisers than ever before (stock). Cars last longer and are more reliable than ever before. All this while at the same time cars and trucks are more fuel efficient than ever before. I swear some people would bitch if they were hung with a new rope.
 
That is absurd. Today vehicles are safer than ever before. There is a greater variety in choice than ever before. Trucks are stouter and can pull more than ever before. Sports cars are faster than ever before. You can get better off road capability in Jeeps, Land Rovers, and Toyota FJ-Cruisers than ever before (stock). Cars last longer and are more reliable than ever before. All this while at the same time cars and trucks are more fuel efficient than ever before. I swear some people would bitch if they were hung with a new rope.
Do you know why trucks are popular? They get around the government rules about the egg cartons... Physics demands that if you want to move farther on that same amount of energy then you have to move far less mass. The human losses that result are staggering.
 
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