The Briefing Room

State Chapters => Texas => Topic started by: corbe on November 21, 2018, 07:02:52 pm

Title: Texas is about to create OPEC's worst nightmare (Bloomberg)
Post by: corbe on November 21, 2018, 07:02:52 pm
Texas is about to create OPEC's worst nightmare

Javier Blas
 
6 hrs ago
 
The map lays out OPEC’s nightmare in graphic form.

An infestation of dots, thousands of them, represent oil wells in the Permian basin of West Texas and a slice of New Mexico. In less than a decade, U.S. companies have drilled 114,000. Many of them would turn a profit even with crude prices as low as $30 a barrel.

OPEC’s bad dream only deepens next year, when Permian producers expect to iron out distribution snags that will add three pipelines and as much as 2 million barrels of oil a day.

“The Permian will continue to grow and OPEC needs to learn to live with it,’’ said Mike Loya, the top executive in the Americas for Vitol Group, the world’s largest independent oil-trading house.

The U.S. energy surge presents OPEC with one of the biggest challenges of its 60-year history. If Saudi Arabia and its allies cut production to keep prices higher, shale will thrive, robbing them of market share. But because the Saudis need higher crude prices to make money than U.S. producers, OPEC can’t afford to let prices fall.

Cartel Squeezed

<..snip..>

http://www.msn.com/en-us/money/markets/texas-is-about-to-create-opecs-worst-nightmare/ar-BBPWgMM?ocid=ientp (http://www.msn.com/en-us/money/markets/texas-is-about-to-create-opecs-worst-nightmare/ar-BBPWgMM?ocid=ientp)
Title: Re: Texas is about to create OPEC's worst nightmare (Bloomberg)
Post by: Free Vulcan on November 21, 2018, 08:35:23 pm
Long have I dreamed of this day.
Title: Re: Texas is about to create OPEC's worst nightmare (Bloomberg)
Post by: GrouchoTex on November 21, 2018, 08:40:24 pm
But wait....
We were told we can't drill our way out of this, and that it would take a least ten years!
 :cool:
Title: Re: Texas is about to create OPEC's worst nightmare (Bloomberg)
Post by: IsailedawayfromFR on November 21, 2018, 09:58:19 pm
Quote from: GrouchoTex on November 21, 2018, 08:40:24 pm
But wait....
We were told we can't drill our way out of this, and that it would take a least ten years!
 :cool:
Obama: Can't Drill Our Way to Lower Gas Prices
! No longer available (http://www.youtube.com/watch?v=bEyPkY0Kf-Y#)
Title: Re: Texas is about to create OPEC's worst nightmare (Bloomberg)
Post by: Sanguine on November 21, 2018, 10:39:21 pm
Quote from: Free Vulcan on November 21, 2018, 08:35:23 pm
Long have I dreamed of this day.

Me too. 
Title: Re: Texas is about to create OPEC's worst nightmare (Bloomberg)
Post by: RetBobbyMI on November 21, 2018, 10:52:11 pm
Below $2 bucks a gallon in San Antonio.  $1.93 lowest, $2.20 average according to GasBuddy.com
Title: Re: Texas is about to create OPEC's worst nightmare (Bloomberg)
Post by: Bigun on November 22, 2018, 01:00:39 am
Very good article!  Just wait until the bottlenecks currently hindering us are removed over the next few years.
Title: Re: Texas is about to create OPEC's worst nightmare (Bloomberg)
Post by: IsailedawayfromFR on November 22, 2018, 01:04:09 am
Quote from: Bigun on November 22, 2018, 01:00:39 am
Very good article!  Just wait until the bottlenecks currently hindering us are removed over the next few years.
We should have both invested in midstream companies last year.
Title: Re: Texas is about to create OPEC's worst nightmare (Bloomberg)
Post by: Bigun on November 22, 2018, 01:11:20 am
Quote from: IsailedawayfromFR on November 22, 2018, 01:04:09 am
We should have both invested in midstream companies last year.

Ain't that the truth!