Kemp: US Shale Producers Are Drilling Themselves into a Hole

Kemp: US Shale Producers Are Drilling Themselves into a Hole
Drilling and production are rising. Prices are declining.

But it not be rational for OPEC to cut output if the only consequence was to encourage continued growth in U.S. shale. Key OPEC producers appear unenthusiastic about further cuts.

If something cannot go on forever, it will stop. The slide in oil prices over the last four months is sending a signal to shale firms about the need to moderate drilling and production programmes.

Either the drilling boom moderates very soon, or WTI prices are likely to fall below $40 per barrel to make it stop.

(Editing by David Evans)


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WAYNE KENNETT  |  July 04, 2017
WHAT IS THE REAL COST TO GET A BARREL OUT OF THE GROUND? NOBODY IS TALKING ABOUT THAT.
Pete Cln  |  July 03, 2017
Sad news!!!what can we do with a bunch of greedy idiots?????????