Tag Archives: shale oil

Decoding the Oil Price War 2: My Wikistrat webinar “Oil Price War & COVID Crisis” transcript

covid-oil_war_2bd-cropped-graphic_wikistrat_12apr20_captureMy Wikistrat webinar transcript “Oil Price War & COVID” from a couple weeks ago is now available on their website as a PDF.  Issues discussed include:

  • Why did Moscow declare the “war”? [Note: Putin & Sechin’s initial boasts Russia would hold out for “years”, kill shale & end sanctions all stopped in only a couple days!]
  • The Saudi response was sharply focused against Russian oil-pipeline markets in W Europe (Druzhba) & Asia.  [I believe this focused Mr. Putin’s attention on economic realities as opposed to Mr. Sechin’s anger-driven desire for revenge against US sanctions that had inflated his (self-)image of Rosneft and Russian oil-market prowess when up against a concerted Saudi counter-war, and the prospects of various US responses.  Reports are that Putin spend three days on the phone to undo this fiasco and, in the end, had to accept significant cuts to Russian output.  See my GlobalBarrel.com post of last week explaining the initial, flawed Russian strategy.]
  • The options Trump had to choose from undermine his long antipathy to OPEC. (Did he secretly offer Putin any Nord Stream 2, Ukraine or Venezuela sanctions relief? If so, Congress won’t approve.) Also: Big Oil (American Petroleum Institute) and W. Texas/other independent producers are pulling at Trump in two very different policy directions re. OPEC, tariffs, production controls, etc
  • And more (esp. in the Q&A): probable impact on carbon mitigation policies, the China market for LNG, US shale’s financial and production future, etc.

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Don’t write off American oil boom despite OPEC – CNNMoney cites my analysis

cnn_money-chart-oil-production-down-slow-01jun16

I was interviewed today by CNNMoney’s Matt Egan on what  OPEC should expect from US shale as they hold their 169th “Ordinary Meeting” in Vienna tomorrow (2 June).  Indeed, at some point oil production and demand will balance (likely in 2017), and then the Saudis and OPEC will have to cautiously test the presently unknown dynamics of high-tech US shale on the rebound. -Egan cites my point  of view in his article. Read on … – Tom O’D.

Don’t bet against the resilience of U.S. oil companies

by Matt Egan @mattmegan5 CNNMoney (New York) June 1, 2016: 12:23 PM ET

Many expected U.S. oil output would collapse under the weight of a lengthy price war with the mighty OPEC, the fractured oil cartel that’s meeting in Vienna Thursday.

The U.S. oil boom, fueled by the shale revolution, has obviously taken a few punches from OPEC’s strategy of all-out pumping. But the latest numbers show that American production continues to remain stubbornly high in recent months despite the crash in crude to as low as $26 a barrel in February.

The U.S. pumped 9.13 million barrels per day in March, down by a miniscule 6,000 barrels from the prior month, according to stats released this week by the U.S. Energy Information Administration. That represents a deceleration from recent monthly declines. By comparison, daily U.S. output dropped by 58,000 barrels in February and by 83,000 barrels in December.

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