Shale Raises Its Head —Again!

There are some of us for whom shale has  been become a refrain—while IEA and other experts put out news that does not really jive with realities on the ground.

Fact:

Shale oil producers have brought the cost of production down, down . And you can increase , reduce , production more quickly than other forms of production. And there is a lot of oil shale reserves in the US. Why do think Exxon Mobil just sunk another $20 billion in shale oil? It certainly wasn’t to produce turnips.

Here’s the story:

‘Oil Prices Take 5% Hit As U.S. Crude Inventories, Production Soar

By Zainab Calcuttawala – Mar 08, 2017, 5:30 PM CST

West Texas Intermediate (WTI) prices dropped five percent to a $50 rate on Wednesday in its biggest dip since September 2015, according to Zero Hedge.

Reuters reported that the plunge came as U.S. inventories surge to record highs every week, fueling doubts about the effectiveness of the Organization of Petroleum Exporting Countries’ strategy to curb production in order to deal with the global supply glut.

“We’re seeing some ‘GMO trading’, or ‘Get-Me-Out’ type trading,” Andrew Lebow, from the Commodity Research Group in Darien, Connecticut, said in an interview. “It’s a combination of an overhang of (speculative) length and the overhang in inventories … and the other thing unnerving the market is rapid growth in U.S. crude production.”

Oil Prices Take 5% Hit As U.S. Crude Inventories, Production Soar

By Zainab Calcuttawala – Mar 08, 2017, 5:30 PM CST
oil workers
West Texas Intermediate (WTI) prices dropped five percent to a $50 rate on Wednesday in its biggest dip since September 2015, according to Zero Hedge.

Reuters reported that the plunge came as U.S. inventories surge to record highs every week, fueling doubts about the effectiveness of the Organization of Petroleum Exporting Countries’ strategy to curb production in order to deal with the global supply glut.

“We’re seeing some ‘GMO trading’, or ‘Get-Me-Out’ type trading,” Andrew Lebow, from the Commodity Research Group in Darien, Connecticut, said in an interview. “It’s a combination of an overhang of (speculative) length and the overhang in inventories … and the other thing unnerving the market is rapid growth in U.S. crude production.”

April futures for WTI prices tested at a $50.05, the economics blog ZH reported.

Wednesday was also the worst day for USO, the exchange-traded fund linked to oil prices, with put volume up to 220,000, compared to 47,000-57,000 on a regular trading day.
The No.1 Gold Stock For 2017

Trumps economic policies could send gold prices soaring and this small company is uniquely positioned to be a huge beneficiary of the coming gold boom.

Click here to find out more
Brent barrel prices, considered to be the international benchmark, also dropped to $52.93 – the lowest it’s been since December 8th of last year.

In November, the members of OPEC resolved to cut production by 1.2 million barrels per day to allow demand to catch up with supply in the first half of 2017. Eleven non-OPEC nations agreed to cut their production by an additional 600,000 bpd in total, though the countries’ compliance to their commitments has been lower than that of the bloc.

Oil industry leaders have spent the week warning of new volatility in energy markets as American shale producers bring back production in lock-step with recovering prices. By the end of 2017, U.S. oil production is predicted to surpass nine million barrels per day.

By Zainab Calcuttawala for Oilprice.com

April futures for WTI prices tested at a $50.05, the economics blog ZH reported.

Wednesday was also the worst day for USO, the exchange-traded fund linked to oil prices, with put volume up to 220,000, compared to 47,000-57,000 on a regular trading day.

Brent barrel prices, considered to be the international benchmark, also dropped to $52.93 – the lowest it’s been since December 8th of last year.

In November, the members of OPEC resolved to cut production by 1.2 million barrels per day to allow demand to catch up with supply in the first half of 2017. Eleven non-OPEC nations agreed to cut their production by an additional 600,000 bpd in total, though the countries’ compliance to their commitments has been lower than that of the bloc.

Oil industry leaders have spent the week warning of new volatility in energy markets as American shale producers bring back production in lock-step with recovering prices. By the end of 2017, U.S. oil production is predicted to surpass nine million barrels per day.’

By Zainab Calcuttawala for Oilprice.com

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s