U.S. Shale: Not Even $200 Oil

#shaleoil #usshale #crudeoil #oilproduction #oilprices #fracking
U.S. shale companies are showing remarkable restraint at $90 oil. But even $200 oil may not be enough to encourage more drilling.

[KillroyX]

Its sad that the US oil industry is holding up drilling.

[waelfaraj]

Markets are unpredictable...
Many factors come to play their role whether expectedly or not ...

[martin]

Most these shale oil companies have a break even price per barrel roughly around $50. Some as low as $30. The concern for these companies is not if they can make a profit at $70 a barrel or above…..the math is simple. These companies have to worry that Saudi will flood the Market again, pushing the price below the break even. Obviously, if the price of a barrel is below the break even these companies will stop producing and subsequently stop having a revenue stream. As such, it’s prudent for them to expand their operations without incurring too much debt……otherwise they could face bankruptcy. By expanding slowly not only do they limit their financial liabilities, they also stay off of OPECs radar to a degree. Let’s also not forget that fracking is a business and not patriotism. The US could peg the price of a barrel at say $75 and essentially subsidize the shale industry but this would be seen as anti capitalism, as well, crude oil companies like Exxon have a lot of powerful lobbyists that would oppose such a move. Exxon loves it when the price is $100 and so do these shale companies. I suppose the US could also privatize these companies but if they did the break even price for a barrel would probably jump to $100 😂

[r.s.]

I don't believe it. $200 and they won't produce? I call BS.

[mc]

I know for a fact this is an outright lie. They're drilling.

[tombouie]

Well it seems Putin just loves $100 barrel oil ;)