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Old 09-08-2014 | 04:29 AM
  #42  
MaxQ
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Originally Posted by Paid2fly
West Texas crude, has been consistently in the low to mid 90 dollars a barrel. The US has been ramping up oil and natural gas production considerably over the last several years, and can continue to increase production and make a profit at prices at and above $80 per barrel.
paid,

WTI bounces 90 to 100/bbl.
The USA still imports slightly less than half of it's daily oil needs, and is a net importer of natural gas as well.
The imported oil is by and large at Brent rates which bounce from 100 to 110/bbl.

Last year the CEO of Shell oil stated that each new barrel of oil that Shell produces costs them about 95$/bbl. Even if somewhat overstated, the point is significant.

USA oil production is up largely due to tight oil. Due to the nature of how quickly these type of wells decline in production it takes a huge amount of drilling to keep the production up. This means a great deal of capital investment and a poor return on the net energy(for the nation) actually extracted. It has done wonders for our economy, but it isn't a given that it is either profitable or long term.
The Bakken has all the earmarks of a bubble, with profits coming more from the inflow of investors money than from actual operations.
Personal predication,(which unfortunately involves the future, which often doesn't agree with my predictions): tight oil will begin a decline in production which will leave a large number of investors who rushed to invest in the "future saudi arabia!" holding the bag, while all the initial operators take the cash and retire in Monaco or Belize.
Why do you think there has been such a shrill hype about this coming boom in the various financial editorials? They need the hogs to come running to the slaughter.
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