Scottish Independence
#407
Re: Scottish Independence
as is your prerogative. it suits a lot of players at the moment to suppress the oil price for the short to mid term. its unsustainably low given the budgets of most opec nations and will rise again soon enough.
eg Saudi can get it out cheap enough but their annual budget aint cheap, all that electricity and water and princeling wastage has to be paid for somehow.
eg Saudi can get it out cheap enough but their annual budget aint cheap, all that electricity and water and princeling wastage has to be paid for somehow.
#408
Lost in BE Cyberspace
Joined: Nov 2012
Location: bute
Posts: 9,740
Re: Scottish Independence
Saudi is running deficit budgets now. It never did in the past.
#409
Re: Scottish Independence
as is your prerogative. it suits a lot of players at the moment to suppress the oil price for the short to mid term. its unsustainably low given the budgets of most opec nations and will rise again soon enough.
eg Saudi can get it out cheap enough but their annual budget aint cheap, all that electricity and water and princeling wastage has to be paid for somehow.
eg Saudi can get it out cheap enough but their annual budget aint cheap, all that electricity and water and princeling wastage has to be paid for somehow.
I really do think it's a demand issue, more than a supply issue.
#411
Lost in BE Cyberspace
Joined: Nov 2012
Location: bute
Posts: 9,740
Re: Scottish Independence
I am always right - though sometimes there may be a slip of the pen....... I mean cursor.
#415
Account Closed
Joined: Mar 2012
Location: Dubai, working at Dust World Central
Posts: 3,706
Re: Scottish Independence
I reckon that there is an 'attack' which is aimed at stopping future exploration etc. Looking at the North Sea there is already talk of closing down existing fields early because of the economic cost of operating aging fields. They have effectively ceased deep water exploration as too expensive. Fracking, shale oil and all those things are expensive to set up and run. When we reach a stage where all of these highly expensive operations have been mothballed, and will take years to start up again, then the oil price will rise to levels where they once again become economically viable. But they will take a long time to get back off the shelf, dust down and put in operation again. The money will be pouring into OPEC once more.
#416
BE Forum Addict
Joined: Sep 2009
Location: Abu Dhabi
Posts: 1,805
Re: Scottish Independence
The new economics of oil: Sheikhs v shale | The Economist
"By contrast, a shale-oil well can be drilled in as little as a week, at a cost of $1.5m. The shale firms know where the shale deposits are and it is pretty easy to hire new rigs; the only question is how many wells to drill. The whole business becomes a bit more like manufacturing drinks: whenever the world is thirsty, you crank up the bottling plant."
#417
Account Closed
Joined: Mar 2012
Location: Dubai, working at Dust World Central
Posts: 3,706
Re: Scottish Independence
I am no O&G expert (in fact not an expert on anything) just going on other comments plus the latest revelations that fracking has and does cause earthquakes.
#418
Re: Scottish Independence
I reckon that there is an 'attack' which is aimed at stopping future exploration etc. Looking at the North Sea there is already talk of closing down existing fields early because of the economic cost of operating aging fields. They have effectively ceased deep water exploration as too expensive. Fracking, shale oil and all those things are expensive to set up and run. When we reach a stage where all of these highly expensive operations have been mothballed, and will take years to start up again, then the oil price will rise to levels where they once again become economically viable. But they will take a long time to get back off the shelf, dust down and put in operation again. The money will be pouring into OPEC once more.