“Now May Be A Time To Panic” For US Shale Oil

Shale oil has an almost horizontal cost curve around $80 … a whopping 11,000 kbls/day are available as long as Brent is above $85, which is a clear “red line” for all OPEC producers. At a price below low $80’s production starts to become uneconomic, and below high-$70’s the total US Shale Oil production should shrink by about two-thirds … that implies a risk of a lot of bankruptcies and unemployment in the oil patch but a more stable pricing environment for the Saudis, and any producers who can remain profitable at that price range


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s