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Bloomberg: OPEC Is About to Crush the U.S. Oil Boom

ibartman
edited October 2015 in Off-Topic
Bloomberg: OPEC Is About to Crush the U.S. Oil Boom | By Grant Smith

http://www.bloomberg.com/news/articles/2015-10-20/after-year-of-pain-opec-close-to-halting-u-s-oil-in-its-tracks
U.S. oil output almost back down to level of last OPEC meeting. Saudi-led strategy is paying off, says Societe Generale. After a year suffering the economic consequences of the oil price slump, OPEC is finally on the cusp of choking off growth in U.S. crude output. The nation’s production is almost back down to the level pumped in November 2014...
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>> Note that bottom graph's vertical axis does NOT begin at 0, although the top graph's vertical axis does.

Comments

  • TSP_TransferTSP_Transfer
    edited October 2015
    Boom and Bust is as it always has been ! ( From Freeport Mac's Conf call ) Oct. 22, 2015 6:51 PM ET
    We reported total sales of copper during the quarter of 1 billion pounds, gold sales of 294,000 ounces, 23 million pounds of molybdenum, and 13.8 million barrels of oil equivalents.

    Our average realized price for copper was $2.38 per pound. That was below last year's third quarter average of $3.12 per pound, and gold prices of $1,117 per ounce or below the year-ago quarter average of $1,220 per ounce. Our oil and gas realized price for crude was $55.88 per barrel that included about $11 per barrel of realized cash gains on derivative contracts. That was substantially below last year's average price of $88.58, which included $6.77 of cash losses on derivative contracts
    Operating cash flows during the third quarter totaled $822 million and capital expenditures totaled $1.5 billion. We ended the quarter with total debt of $20.7 billion and consolidated cash of $338 million.

    http://seekingalpha.com/article/3595956-freeport-mcmoran-fcx-richard-c-adkerson-on-q3-2015-results-earnings-call-transcript

    More Bears and OPEC similarities to previous price busts.
    Oil’s big slump looks like the 1980s ‘Lost Decade’
    Posted on October 22, 2015 | By Bloomberg
    Crude oil’s collapse is bringing back memories of the decade of low prices that started in 1985 when Saudi Arabia began targeting market share.
    http://fuelfix.com/blog/2015/10/22/oils-big-slump-looks-like-the-1980s-lost-decade/#35109101=0
  • Old_JoeOld_Joe
    May be, but as soon as the price creeps back up to a certain level the US can begin profitable pumping once again. An interesting situation. OPEC may regain volume, but not at $100/bbl.
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