http://www.daily-times.com/story/opinion/columnists/2016/01/24/fine... <--For the complete article use this link/
Editor's note: This is the conclusion of a two-part article by Daniel Fine. The first appeared on Dec. 28 in The Daily Times' Energy magazine.
A measure lifting the crude oil export ban was approved by Congress in December. OPEC and Saudi Aramco entered the price war against American high-cost shale production in September 2014. This war has consisted of counter strike or retaliation options from the beginning.
Consequently, the congressional “deal” lowered the Brent and WPI price of oil by 6 percent in December. Advocates of lifting the crude oil ban were silent or indifferent. Where are they now?
At least 60,000 barrels were sold to a Swiss trading company by one of the advocate oil producers. We must wait for a first quarter report for details on the pricing and impact to cash flow. Simply put, was the money spent on studies and lobbyists profitable? Highly unlikely.
The year 2016 has opened with both Brent and WPI prices in virtual convergence at 2008 trading lows. OPEC does not expect recovery oil prices (2010-2014 levels) until 2040 which almost coincides with the Paris objectives of reducing fossil fuels. Meanwhile, the San Juan Basin is active with forced asset sales.
The big energy banks will face stress tests soon which explore price scenarios in relation to oil trading positions and loans to oil and gas producers. Smaller banks, the traditional source of small oil explorers and producers credit will face more severe determinations of debt.
The OPEC price war for market share continues. Some $200 billion of capital expenditure among the shale or light tight oil American producers has been lost. There is still weak demand, oversupply, and Chinese
Tags: China, DanielFIne, GOP, Geopolitics, NewMexico, OPEC, OilPrice, Republicans, Russia, WorldNews, More…news, oilandgas, oilexports
There appears to be a pattern here.
Robert Johnson favorited Robert Johnson's discussion Oil guru Dr. Daniel Fine was right on gas prices Dec 1, 2015
Robert Johnson favorited Robert Johnson's discussion Lifting of export ban unlikely to fuel growth anytime soon Dec 25, 2015
Robert Johnson favorited Robert Johnson's discussion Fine: Washington, D.C., on oil and gas Jan 6
Robert Johnson favorited Robert Johnson's discussion Fine: Washington DC and oil and gas, Part 2 by Dr. Daniel Fine 39 minutes ago
In researching the decades-old Tuscaloosa Trend and the immense wealth it has generated for many, I find it deeply troubling that this resource-rich formation runs directly beneath one of the poorest communities in North Baton Rouge—near Southern University, Louisiana—yet neither the university ( that I am aware of) nor local residents appear to have received any compensation for the minerals extracted from their land.
This area has suffered immense environmental degradation…
ContinuePosted by Char on May 29, 2025 at 14:42
246 members
359 members
121 members
193 members
146 members
400 members
101 members
150 members
166 members
9 members
© 2025 Created by Keith Mauck (Site Publisher).
Powered by
h2 | h2 | h2 |
---|---|---|
AboutAs exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More |
Links |
Copyright © 2017 GoHaynesvilleShale.com