• 4 minutes What If Canada Had Wind and Not Oilsands?
  • 8 minutes EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 17 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 2 hours Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 1 hour U.S. Withdraws From U.N. Human Rights Council
  • 2 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 5 hours Could oil demand collapse rapidly? Yup, sure could.
  • 1 hour What If Canada Had Wind and Not Oilsands?
  • 6 hours North Korea, China Discuss 'True Peace', Denuclearization
  • 1 hour "The Gasoline Car Is a Car With a Future"
  • 6 hours WE Solutions plans to print cars
  • 7 hours Gazprom Exports to EU Hit Record
  • 1 hour EVs Could Help Coal Demand
  • 2 hours Saudi Arabia turns to solar
  • 3 hours Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 22 hours Are EVs Safer Than Combustion Engine Vehicles?
  • 11 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 21 hours Oil prices going down
  • 21 hours Russia, Saudi Push For Big Hike In Oil Output Despite Iran Opposition
Alt Text

Venezuela’s Oil Meltdown Defies Belief

As Venezuela’s oil production continues…

Alt Text

Europe Is Awash With Oil Stored On Ships

Bullish sentiment in markets makes…

Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

Trending Discussions

Where Are We In The Oil Bust Cycle?

Latest reports from the big Bakken shale producers are proving where we are in the crude bust cycle we’ve been following and trying to time. Both Continental Resources (CLR) and Whiting Petroleum (WLL) reported that they’ll not frack another new well for 2016, a major indicator of how close we’re getting to the bottom in oil prices and the bottom in oil stocks.

My outline for this oil bust cycle laid out in my book continues to hold true, and we’ve been waiting for a real decline in U.S. production (as well as Canadian and offshore) to tell us when the huge glut in domestic oil supplies will finally retreat, and we can get more aggressive in buying oil stocks. As inevitable as that retreat has seemed to me, it’s also been painfully slow – and helped to drop oil prices twice unexpectedly under $30 a barrel.

Continental and Whiting’s decision to cease fracking new wells has confirmed some facts that we’ve known about this bust but that haven’t been universally acknowledged yet. First, ridiculously low breakeven numbers that have been touted by many shale producers and analysts have been just smoke – These are the two most prolific Bakken shale players with the choicest acreage admitting that a profit can no longer be made with oil at $30 a barrel. But it also affirms the accompanying nonsense of these shale players – even the best of them – to continue to increase production through the year…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News