Cartoon Of the Week
Here's a fact...Americans are smitten with the US shale oil phenomena and irrationally exuberant over the fact that our country is now producing over 11.3MM BOPD.
But America can't do any more with all this new light tight oil supply; refineries can't handle it and don't need the stuff. So all this shale oil has got to be exported to foreign countries and, short of providing wonderful jobs, tax revenue, and a lot of CEO's and folks on Wall Street with more wealth...its doing our nation NO good. The shale oil industry is borrowing new money and deferring hundreds of billions of dollars of old debt...to export America's oil at a steep discount to worldwide prices. Does that make sense?
When shale oil is gone, and trust me (I've been an oil and gas producer for 50 years), it will be gone much sooner than people think, then what? Here's what: we're going to wish the hell we had been more protective of it and kept it here, in OUR country, where it belongs, that's what. When its gone we're going to be back to begging OPEC for help again, that's what.
And here is another fact, please: productivity is not the same as profitability. Is the American shale oil phenomena turning the corner and on its way to being able to pay its debt all back? Concho Resources, the largest, and the most "pure" unconventional oil and associated gas producer in the Permian Basin, lost $199MM 3Q2018.
I believe in KEEPING America great. Exporting our last remaining oil resources away to keep shale oil companies afloat and able to service debt is NOT doing that. It is damn poor policy. America Needs AMERICA'S Oil !