They Mis-Underestimated The Frackers -- June 29, 2017 - Hallo friendsMY LIVE MY WAY, In the article you read this time with the title They Mis-Underestimated The Frackers -- June 29, 2017, We have prepared this article for you to read and retrieve information therein. Hopefully the contents of postings Article my style, Article my way, Article New ways, Article their way, We write this you can understand. Alright, good read.

Title : They Mis-Underestimated The Frackers -- June 29, 2017
link : They Mis-Underestimated The Frackers -- June 29, 2017

They Mis-Underestimated The Frackers -- June 29, 2017

I remember when the analysts said US shale operators could not act quickly in bringing new supply of crude oil to the market. A sentence in this Bloomberg article jumped out at me. From the article:

The chorus in the oil market calling for deeper production cuts gets louder almost every day. By resisting the clamor, OPEC is breaking with its own history.

As crude sank below $50 a barrel -- less than half the price of two years ago -- market-watchers from Goldman Sachs Group Inc. to former OPEC officials said supply curbs imposed this year need to be intensified. That would be consistent with past behavior, when production cuts or increases often arrived in stages a few months apart.

This time is different. The emergence of U.S. shale oil producers -- who can adjust supply more rapidly than OPEC’s previous rivals -- means the Organization of Petroleum Exporting Countries cannot act with the same freedom it once did. As economic pressure mounts for exporting countries, using the old playbook runs the risk that new American supplies would fill in any extra cutbacks.

“When OPEC was in control, it would often act in stages,” said Chakib Khelil, a former Algerian energy minister who was OPEC president in 2008. “The market is different than in 2008. Today, non-OPEC plays a larger role in supply. And the major issue is how long can they sustain this supply.”

Oil has given up almost all its gains since OPEC and Russia launched their initiative to clear a three-year surplus. Their supply cuts have failed to deplete the world’s bloated fuel stockpiles quickly enough and West Texas Intermediate futures have declined about 16 percent this year, trading at $45.06 a barrel at 10:04 a.m. in New York on Thursday. Previously, that would probably have prompted OPEC to revise its plans and agree on additional reductions.

In bold again for those missed it the first time around: the emergence of U.S. shale oil producers -- who can adjust supply more rapidly than OPEC’s previous rivals ...

Bloomberg reports this like it's a fact, and a fact that everyone has know from "day one." But I remember analysts only two years ago suggesting US shale operators would be slow to add production, that it would six months to a year to ramp up production.

I guess they underestimate the "frackers" -- Aubrey McLendon, Harold Hamm, George Mitchell, Tom Ward, Charif Souki, and Mark Papa, to name a few.

Wow, I love this stuff.

http://ift.tt/2dZyQXu

Thus Article They Mis-Underestimated The Frackers -- June 29, 2017

That's an article They Mis-Underestimated The Frackers -- June 29, 2017 This time, hopefully can give benefits to all of you. well, see you in posting other articles.

You are now reading the article They Mis-Underestimated The Frackers -- June 29, 2017 with the link address https://mylivemyidea.blogspot.com/2017/06/they-mis-underestimated-frackers-june.html

Tweet

Subscribe to receive free email updates: