Commodity Trade Mantra

Posts Tagged ‘Shale Boom’

The Coming May Oil "Buy Signal”

According to a U.S. EIA report, the huge surge of growth for the past five years in America’s shale patch is coming to an end. This is a watershed moment for the U.S. shale boom — and a vitally important moment for investors, too. So what does this mean for the price of oil? And what does this mean for shale producers?

U.S. Shale Boom May Come To Abrupt End

I believe US oil production will fall sooner & more sharply than many analysts predict. Average well productivity has decreased by one-third. Every rig taken out of service today has more than 3 times the impact on daily production as before pad drilling became common. A good thing for oil price recovery but maybe not for future shale plays.

America’s Shale Boom is Not Dead

America’s oil boom is real. Underneath domestic soil sits a massive supply of oil and gas – decades worth of supply. There’s no “great lie” found at the heart of America’s shale boom. Many of the well-run players in this space will never get close to default, let alone spark a 2008-type meltdown. The production is no flash in the pan either.

Make No Mistake, the Oil Slump Is Going to Hurt the US Too

Oil would have to fall even further if it’s going to rebalance the oil market by bankrupting the world’s most marginal producers. As North American shale producers have relatively high cash costs, the Saudis could very well succeed in making a big portion of US and Canadian oil production disappear, if they are determined to.

OPEC Oil Decision: A Major Strike Against American Market

OPEC’s decision not to cut oil production, and Nigeria’s comments on the need for burden-sharing among non-OPEC members, ensures a crash in the US shale industry according to Leonid Fedun (Russia’s Lukoil board member). As Fedun ominously warns, this is a “major strike against the American market.”

The Golden Age of Gas, Possibly: Interview with the IEA

International Energy Agency (IEA) – The global energy authority believes that this age of gas can be golden & that unconventional gas can be produced in an environmentally acceptable way. The potential for a golden age of gas comes along with a big “if” regarding environmental & social impact.

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