Yet another is that the Saudis hope to drive oil prices below where it makes sense for American shale producers to invest in new production. I saw this argument in comments elsewhere last week. Its nonsense. North American producers are getting better at this all the time: But shale producers have lowered their costs so much that in key fields they can make profits at $50 to $70 a barrel. That’s above core OPEC members’ exploration and production costs but below what many need to cover their government spending. OPEC is not going to make it. Theyll be relegated to picking date seeds out of camel shit, soon enough.
Posted on: Mon, 15 Dec 2014 17:49:43 +0000
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