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Big Willy's To Shut Down- Says OPEC

Mike

Well-known member
OPEC Policy Ensures U.S. Shale Crash, Russian Tycoon Says


By Will Kennedy and Jillian Ward Nov 27, 2014 9:04 AM CT 527 Comments Email Print


At today’s prices of just over $70 a barrel, drilling is close to becoming unprofitable...
OPEC policy on crude production will ensure a crash in the U.S. shale industry, a Russian oil tycoon said.

The Organization of Petroleum Exporting Countries kept output targets unchanged at a meeting in Vienna today even after this year’s slump in the oil price caused by surging supply from U.S shale fields.

American producers risk becoming victims of their own success. At today’s prices of just over $70 a barrel, drilling is close to becoming unprofitable for some explorers, Leonid Fedun, vice president and board member at OAO Lukoil (LKOD), said in an interview in London.

“In 2016, when OPEC completes this objective of cleaning up the American marginal market, the oil price will start growing again,” said Fedun, who’s made a fortune of more than $4 billion in the oil business, according to data compiled by Bloomberg. “The shale boom is on a par with the dot-com boom. The strong players will remain, the weak ones will vanish.”

Oil futures in New York plunged as much as 3.8 percent to $70.87 a barrel today, the lowest since August 2010.

At the moment, some U.S. producers are surviving because they managed to hedge the prices they get for their oil at about $90 a barrel, Fedun said. When those arrangements expire, life will become much more difficult, he said.
 

Mike

Well-known member
I tried explaining to OT about the oil boom up there, and that it could go bust any day. He never understood and came up with the estimates of how many barrels were in the ground, etc. etc.

I guess now he wants the price of oil to stay high? Pretty funny considering he ranted for months that those pesky speculators were driving the price of oil up back during Bush..................

This just goes to show that supply & demand sets the price. And if you can't produce oil for less than that price, you're sh!t out of luck.
 

Whitewing

Well-known member
Mike said:
I tried explaining to OT about the oil boom up there, and that it could go bust any day. He never understood and came up with the estimates of how many barrels were in the ground, etc. etc.

I guess now he wants the price of oil to stay high? Pretty funny considering he ranted for months that those pesky speculators were driving the price of oil up back during Bush..................

This just goes to show that supply & demand sets the price. And if you can't produce oil for less than that price, you're s*** out of luck.

Indeed. It's like when he whines about the do-nothing Congress taking 8 year vacations instead of investigating the actions of the executive branch, then whines about the money they spend while doing their job investigating the actions of the executive branch.

It's obvious he just likes to whine.
 

loomixguy

Well-known member
Remember how he could practically vapor lock over "Bush and his oil buddies"?

It was Bush's "oil buddies" that were directly responsible for a certain family member of his to have gainful employment, even if it was at Wet Willy's......but he's too busy praying five times a day to realize that....
 
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