Wednesday, November 26, 2014

"The Shale Revolution Doesn't Work At $80"

Drilling for oil in 19 shale regions loses money at $75 a barrel, according to calculations by Bloomberg New Energy Finance. Those areas pumped about 413,000 barrels a day, according to the latest data available from Drillinginfo Inc. and company presentations.

“Everybody is trying to put a very happy spin on their ability to weather $80 oil, but a lot of that is just smoke,” said Daniel Dicker, president of MercBloc Wealth Management Solutions with 25 years’ experience trading crude on the New York Mercantile Exchange. “The shale revolution doesn’t work at $80, period.”


(via Zero Hedge)

at 9:51:00 PM

3 comments:

  1. Robert What?November 27, 2014 at 6:49 AM

    "That's some catch, that Catch 22."

    And nobody could be happier about this than the Saudis.

    ReplyDelete
  2. AnonymousNovember 27, 2014 at 10:57 AM

    Does it work at $70? Because thats where we are.

    ReplyDelete
  3. ianNovember 27, 2014 at 7:59 PM

    I don't see any of the western (ie. California) plays. Are they better?

    ReplyDelete

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