The US rig count is down 60% from where it was just a few months ago. All because of OPEC not wanting to lose market share. It is a war on America. Our oil technology requires oil prices to be @ or above $75.00 per bbl for our Shale oil to be marketable. Opec continues to flood the market with oil.
One of our US Presidents called it trickle down economics where money is dispersed through jobs. So when oil prices drop, and markets collapse , it trickles down through lose of jobs and company Bankruptcy. Steal mills, Real estate, Banks etc. We all like lower gas prices but like I said OPEC is Warring against America. Period !!
Tracy
Tracy, you are correct - mostly…..
The “middle easterners” have “lifting cost”, or as others call “production cost of somewhere around $5 bucks a barrel.
Athabasca Canadian Oil Sands are so high cost per barrrel as well as N.D Bakken shale companies, they cannot compete.
On the other hand, the Texas Permian Basin Sprayberry/Wolfcamp production lifting costs are around $8-9 bucks a barrel and those old wells hold “HBP” acreage millions of acres so no lease acquisition costs - We have advanced technology that allows us to drill multiple wells with one a rig on one pad site.
This thing is not over - you know all this stuff but others might be interested.
Yes, I am very familiar with this stuff - I was Division Geophysicist for a Major Oil Company in Midland at one time and assignment in many of the other Oil Provinces.
It ain’t over ‘til it’s over.
Cheers,
George
