American shale oil now in free-fall

ShatterAlan

To extract a barrel of oil using the fracking method, It costs upwards of $50 per barrel. The price of oil is now down to about 20-25 per barrel. The Russian can still extract oil on a $20 market and still make a profit.


America has slapped oil, gas and other sanctions on Russia in a game that is rapidly backfiring. Putin doesn't care. He tried to play fair. So now the American and Canadian tar sands oild industry is on life support.



Trump has called Putin to beg him to cut production in order to elevate the price. Why would he? America fcuked with the bear and are now reaping the consequences.



http://www.informationclearinghouse.info/54095.htm

jimgoose

Putin has Russia producing well below cost to keep that industry turning over in response to pressure from the Saudis, who would normally have cut production by now at a time like this, but they want to piss Putin off over Syria, and I would imagine they are succeeding. The North American shale oil industry always waxes and wanes in response to what OPEC and co. are up to, that's normal.

Tabnabs

Putin is helping his oligarch friends by using Russian State backed interventions to prop up the domestic industry. If anything it's Russia who may be damaged most of all by this.

Russia has been producing oil at the pace of around 11.21 million barrels per day, near a post-Soviet record high, but Novak warned that the output could sharply fall in a few years if the government fails to introduce measures to spur it.

Novak also said he expected Russia’s oil production in 2018 to total 553 million tonnes (11.105 million barrels per day), up from around 547 million tonnes in 2017, and that production would peak at 570 million tonnes in 2021.

On Tuesday, he outlined several measures aimed at encouraging a boost in oil production, which is declining in West Siberia, the country’s main oil producing region.

The measures include introducing benefits for exploration, greenfields developing, increasing production rates, as well as profit-based tax for all oilfields in West Siberia.

https://www.reuters.com/article/us-oil-opec-russia-idUSKCN1LY1EW

The Russian's need oil at $50 per barrel to make it a going concern for them.

Fred Cryton

Not according to the head of Commodities Research at Goldman Sachs. Just heard him say Russia will be the worst hit. If their Soviet era oil wells shut, they won't re-open.

Eric Cartman

This was always the plan, wait till US investors get bearish then try bankrupt domestic producers,

99nsr125

Williston Sour was $1.70 yesterday

1c a litre of oil

There's going to have to be alot of printing of money
and even then . . .

ShatterAlan wrote: »

To extract a barrel of oil using the fracking method, It costs upwards of $50 per barrel. The price of oil is now down to about 20-25 per barrel. The Russian can still extract oil on a $20 market and still make a profit.


America has slapped oil, gas and other sanctions on Russia in a game that is rapidly backfiring. Putin doesn't care. He tried to play fair. So now the American and Canadian tar sands oild industry is on life support.



Trump has called Putin to beg him to cut production in order to elevate the price. Why would he? America fcuked with the bear and are now reaping the consequences.



http://www.informationclearinghouse.info/54095.htm