Originally Posted by
Heathrow Harry
The Economist had an interesting article this week - the legacy oil producers are being stuffed as shale oil/gas (very much US based now) have an "Industrial model" which allows a better chance of playing the forward market than the traditional oil patch model- in other words unless they are willing to drive prices down to say $ 20 a bbl AND keep them there for years the US shale producers will continue to be the new swing producers
HH,
Indeed, the US producers are now able to extract oil and gas at a far lower cost than three years ago, so what were relatively expensive field could be brought back on line. Add into this a rationalisation of the companies with the small ones being swallowed by the bigger ones.
https://seekingalpha.com/article/407...on-levels-soon
https://www.ft.com/content/c2cbc180-...0-1ce02ef0def9