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Crude Economics
US Energy Outlook Dims
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  • Josephbleau

    With regard to verbs there is dim dimmer and dimmest. U.S. shale producers are not the dimmest. If oil prices drop and stay below 30/bbl and not a drop of US shale oil is produced for 50 years I could care less. In the next century tight oil will still be underground. If oil starts to rise in price at any point, let directional drilling begin.

  • Jacksonian_Libertarian

    The EIA has a very poor record when it comes to predicting the future.

    • JR

      In their defense, predicting the future is really hard. 🙂

  • Andrew Allison

    The proposition that the Saudis, and hence OPEC are enduring the low prices for now in the hope that it will hurt non-OPEC producers (read: American shale firms) more than it will the collection of petrostates is ridiculous on it’s face. As they have made clear, they are intent on maintaining their share of the OPEC market. The other members of OPEC are enduring low prices because they must.

  • Kevin

    How much of this is driven by the lack of markets and storage for US crude as opposed to low global prices? As I understand it, many US refineries are designed for heavy crude such as that from Venezeula and lack the ability to process the light crude that scones from ND and TX fracking. Thus they need to import heavy crude to operate. With domestic storage now full and exports prohibited there is nowhere for all this domestically produced light crude to go, thus reducing the price for U.S. light crude (as seen in the discount for WTI versus Brent) far below the international price. Would approving US crude exports provide relief for this?

    • f1b0nacc1

      Interesting observation….refilling (largely done) or seriously expanding the SPR might be an excellent idea though…

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