Replies to This Discussion

Permalink Reply by Joe Aldridge on June 28, 2015 at 8:57

Hey Skip,

This is what I've said from the beginning!!!!!!! These guys are way above your's and my pay grade. They seem to think something that you won't admit.The Shale and unconventional production have OPEC scrambling and hoping that they can kill the unconventional  producers with a price war.

• ▶ Reply

Permalink Reply by Skip Peel - Mineral Consultant on June 28, 2015 at 9:16

Haven't changed my mind, Joe.  The issue provides room for those who need to produce content or, as in this case, blow their own horn, to claim that:  the Saudis and Americans are out to damage the Russian economy by crippling their only source of hard capital export dollars;  the Saudis and the UAE are punishing Iran and limiting their ability to spread their brand of Shia Islam; the Saudis are defending their market share especially that in China and SE Asia from all comers (but not the US as we don't export); etc., etc. etc.  What you seem to miss is that some or all of the above may be true, only the Saudis know for sure.  And that by defending their market share at all costs, which is the analysis accepted by the majority of experts I have read, they provide the opportunity for any and all competitors to cry poor me.  Including US energy companies that depend on high cost unconventional production.  For some it represents the opportunity to overturn the ban on exporting domestic crude.  None of those proponents have yet to put forth an argument that holds water.  However I'm sure they feel it helpful to their cause to promote the feeling that they are being targeted by the Saudis.

• ▶ Reply