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Saudis unable to break US shale industry

Randy Daytona

Cold War Relic
pilot
Super Moderator
Good news for US shale as oil starts to move past the $40's and into the $50's towards a sweet spot for the US. Also good news for those rotorheads flying the rigs.

Saudi Arabia Surrenders To U.S. Shale
The new OPEC deal to cut oil output – the cartel’s first since 2008 – amounts to nothing less than Saudi Arabia’s surrender to the power of American shale.

It has come about due to Riyadh’s belated, horrified understanding that it has utterly lost control over the energy market, running through its capital reserves in the process. Rather than young, feckless Deputy Crown Prince Mohammed bin Salman using Saudi Arabia’s John D Rockefeller strategy to permanently drive U.S. shale out of the energy market, the exact opposite result has occurred. Unwittingly, the Saudis have made the Americans the new global energy swing producer, the permanent ceiling for the global price of oil.

http://oilprice.com/Energy/Crude-Oil/Saudi-Arabia-Surrenders-To-US-Shale.html
 

Randy Daytona

Cold War Relic
pilot
Super Moderator
I'm increasingly frustrated when presumably intelligent professional aviators repost and comment on click bait blogger posts. Stop it.
So what do you think Saudi Arabia's intent was in regards to keeping the oil tap open despite dropping prices? Or is it a matter of using a source other than the NYT and WP (we saw how accurate they were in the last election.)

I tend to agree with RIGZONE.

The Organization of Petroleum Exporting Countries’ (OPEC) decision to cut production by 1.2 million barrels per day of oil will result in as much as $15 billion in increased spending to flow into the non-OPEC shale market in 2017...Non-OPEC shale well services firms will be best positioned for this growth, with an estimated $10 billion of additional spending, according to recent analysis by Rystad Energy...OPEC’s decision will give North American shale the opportunity to prove it can fill the role as the world’s swing producer, according to a Dec. 7 analyst note from Evercore ISI Research.

http://www.rigzone.com/news/article.asp?hpf=1&a_id=147695
 

Brett327

Well-Known Member
None
Super Moderator
Contributor
The headline implies that the Saudis are pulling out of OPEC. That is clearly not the case.
 

Randy Daytona

Cold War Relic
pilot
Super Moderator
The headline implies that the Saudis are pulling out of OPEC. That is clearly not the case.
Interesting. That interpretation was not one I considered. I read it as Saudi Arabia tried to put the US fracking companies out of business but did not succeed.
 

Brett327

Well-Known Member
None
Super Moderator
Contributor
Interesting. That interpretation was not one I considered. I read it as Saudi Arabia tried to put the US fracking companies out of business but did not succeed.
I don't think you understand - YOUR thread headline implies that, not the linked story. It's a trend.
 

HokiePilot

Well-Known Member
pilot
Contributor
I agree with Brett on this one. I don't understand why you think this article adds value to an 8 year old thread. I have seen you do this many times before.
 

Randy Daytona

Cold War Relic
pilot
Super Moderator
You want a new thread, no problem. I personally like to find a related thread, go back to it, and see how it changes over time for historical context. In the previous thread, Flash did a good job describing the internal problems that OPEC has, but as Flash said, OPEC is not going to dissolve. The part that is related is that OPEC (Saudi) tried to break the US shale industry, failed and now has lost the ability to price the commodity. It appears that the majority would prefer a new thread - I will accept the results (novel concept.)

In addition to the economic and political ramifications of developments in the oil industry, those of us who work in commercial aviation are very aware of the price of oil. Those who jobs, income and health care are guaranteed by Uncle Sugar may not care as much, but for some of us the price of oil can determine if you are employed or not. Too low and it is a disaster for rotary wing pilots, too high the airline guys feel the pain. Looking at the long term, it may impact guys decisions on whether to stay flying rotary or perhaps see the grass is greener in the fixed wing world.
 

Jim123

DD-214 in hand and I'm gonna party like it's 1998
pilot
I guess it's too much to ask for the term, "tar sands" instead of "shale" in the title. :D
 

Flash

SEVAL/ECMO
None
Super Moderator
Contributor
...In addition to the economic and political ramifications of developments in the oil industry, those of us who work in commercial aviation are very aware of the price of oil. Those who jobs, income and health care are guaranteed by Uncle Sugar may not care as much, but for some of us the price of oil can determine if you are employed or not. Too low and it is a disaster for rotary wing pilots, too high the airline guys feel the pain. Looking at the long term, it may impact guys decisions on whether to stay flying rotary or perhaps see the grass is greener in the fixed wing world.
And there are plenty of folks who rely on the exact opposite, lower gas prices means employment and more money for them.
 

Hair Warrior

New Member
Build the Keystone XL pipeline. Also pursue cleaner energy, renewables, nuke plants, and more efficient vehicles and appliances. Become energy-independent. Say FU to ROW.
 

ryan1234

Well-Known Member
Keep oil prices cheap to reduce ISIS funding through black market oil sales...
There is reason to believe that lower oil prices would further increase instability, particularly in respect to state security. Starving ISIL financially is great and all, but there's an entire civilian economy there as well. After ISIL suffocates, Salafi political ideology 3.0 will rise to further undermine Iraqi state physical and economic security.
 

zippy

Freedom!
pilot
Contributor
There is reason to believe that lower oil prices would further increase instability, particularly in respect to state security. Starving ISIL financially is great and all, but there's an entire civilian economy there as well. After ISIL suffocates, Salafi political ideology 3.0 will rise to further undermine Iraqi state physical and economic security.
I'm guessing the Saudis Royals don't care about Iraqi security as much as they care about their own heads being attached to their bodies. Saudi Arabia considers itself to be the center of the Muslim word since it holds Mecca and Medina... the "Islamic State" can't exist legitimacy while those do. In fact Is has already called for their destruction. The Saudis know that unless IS killed off now, they're next.

http://worldnewsdailyreport.com/isis-leader-calls-for-destruction-of-kaaba-stone/
 

nittany03

FUBIJAR
pilot
None
Super Moderator
Contributor
I'm guessing the Saudis Royals don't care about Iraqi security as much as they care about their own heads being attached to their bodies. Saudi Arabia considers itself to be the center of the Muslim word since it holds Mecca and Medina... the "Islamic State" can't exist legitimacy while those do. In fact Is has already called for their destruction. The Saudis know that unless IS killed off now, they're next.

http://worldnewsdailyreport.com/isis-leader-calls-for-destruction-of-kaaba-stone/
That link makes no sense at all; Baghdadi's education is in religious studies, as with anyone who at least purports to be a Muslim scholar or cleric (same thing for them, really). A trained Muslim cleric, no matter how batshit crazy, arguing that the Kaaba is idolatry? That's like someone calling themselves Catholic, and then going on a rant about how consuming the Host is cannibalism. That's like a Jew saying it's OK to burn a Torah scroll. It just doesn't theologically compute. Like, at all.

Conquer Mecca? Sure. Destroy the Kaaba? Someone in that process doesn't know shit about Islamic beliefs.
 
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