Cartoon Of the Week

November 28, 2018

 

 


While OPEC + (Russia and almost the entire rest of the world's producing oil nations) cut production thru the 1st quarter of 2019 to stabilize oil prices (hopefully), the United States shale oil industry will be doing everything it can to grow its production and create more  oil price volatility (definitely).  With oil near $43 (Permian) and  $38 (Bakken), to even maintain current levels of unconventional oil production in America the LTO industry will have to  borrow a lot more money. The US public and private shale oil industry, already at around $300 billion of  debt,  owes almost as much money as the combined national debts of Russia and Saudi Arabia combined [1] [2]. Google it. 

 

Debt and 83% decline rates the first 34 months of production life does not economically work. It has not worked in 10 years for the US shale oil industry; not even at much higher, stable oil prices. It nevertheless keeps outspending revenue like its on a mission of self destruction.  

 

Bombs away !!

 

 

                                                                                               Click the photo for more!

                                                     

 

[1] https://www.nationaldebtclocks.org/debtclock/russia

[2] https://hanke.io/debtclock/saudi-arabia/

 

 

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