(03-09-2020, 12:47 AM)vbin Wrote: @fenders53 how do u know it's not feasible. What's the production cost for Saudis and Russia?
Oh they can sell it cheap. What they don't have is other ways to make money, and SA government is now committed to a lot of social spending. Russia has a few more natural resources, but no real economy either. It depends who you ask but I've heard they can break even around $20 with all costs included.
And yes they won't mind if shale goes away. They have to be tired of tightening, so the shalers can double their production. Shale is in deep trouble fast if they keep prices down low. The small operations with debt will be defaulting on loan payments in a quarter if what I read is correct. Some of them were shutting down before this happened. Fracking wells fade from full capacity quickly, then you have to use special techniques to extract which isn't free of course. In any event shale is going to drop way off for this cycle. No chance oil gets expensive anytime soon. They say low oil prices cure low oil prices. The cycle will repeat, but not soon enough. Have to kill off shale, and big oil will suffer too. They will live to fight again though.