• 4 minute Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 8 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 15 minutes Oil and Trade War
  • 42 mins Could oil demand collapse rapidly? Yup, sure could.
  • 8 hours Migrants: Italy Wants EU Border Agency In Africa, Not At Sea
  • 5 hours Are EVs Safer Than Combustion Engine Vehicles?
  • 1 hour What If Canada Had Wind and Not Oilsands?
  • 4 hours WE Solutions plans to print cars
  • 4 hours Russia, Saudi Push For Big Hike In Oil Output Despite Iran Opposition
  • 4 hours Oil prices going down
  • 9 hours Nopec Sherman act legislation
  • 15 hours Sabotage at Tesla
  • 8 hours Sell out now or hold on?
  • 13 hours China & India in talks to form anti-OPEC
  • 3 hours Australia mulls LNG import
  • 11 hours The Irrelevance Of BTU Rating - Big Oil's Gimmick To Hoodwink The Public
  • 11 hours After Three Decade Macedonia End Dispute With Greece, new name: the Republic of Northern Macedonia
  • 3 hours Oil and Trade War
  • 10 hours Trump Hits China With Tariffs On $50 Billion Of Goods
Alt Text

China’s Growing Debt Could Be Bearish For Oil Prices

China’s crackdown on corporate and…

Alt Text

Permian Discount Could Rise To $20 Per Barrel

Midstream constraints plaguing Permian drillers…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

Halliburton Is Bullish On Their Future & You Should Be Too

If sensational headlines are to be believed, the recent drop in oil prices signals the end of the U.S. shale boom. The reality, however, is likely to be more about a shift in focus than it is about a collapse. Yes, some shale oil is fairly costly to extract and some wells were only drilled because WTI at over $100 made them seem like a reasonable proposition, but the vast majority of producers and plays can survive with oil at these levels. According to IEA Executive Director Maria van der Hoeven in an interview with Reuters recently “…some 98 percent of crude oil…from the U.S. has a breakeven price of below $80 and 82 percent have a breakeven price of $60 or lower.”

It is likely then that even if prices stay low, or even fall further, what we will see will be a shift of resources to the lower cost plays rather than a dramatic reduction in capacity or actual production. That is especially so given that, despite recent wobbles; global demand for energy is still increasing and will continue to do so for the foreseeable future. Obviously lower prices hit the margins of producers, so investors are rightly wary of throwing money at E&P companies until some stabilization is achieved. If production is continuing, however, but with the geographical emphasis being shifted, there is one group that would benefit from that; oilfield service companies.

Those companies have seen their stock fall as oil prices have collapsed but if production is…

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