SA / Russia - Oil Price War

[shurguywutt]

This was an interesting read. We should see gas prices tumbling in the next few weeks depending on how this plays out. Hopefully our domestic production market is not hit too hard.

https://www.middleeasteye.net/news/saudis-plan-crude-oil-output-increase-begin-price-war-report

 

[LazyDog]

Some of the smaller shell producers might not survive this price war.

 

[4WD]

Shale … a rock that typically lacks the permeability to flow or porosity to contain significant volume … hence the need for horizontal (hit more of it) and hydraulic stimulation (open flow paths)

 

[CT8]

Probably i twon't last long or have long term good results.

 

[4WD]

Originally Posted by CT8
Probably i twon't last long or have long term good results.


That's probably right … those places count on outside resources who will not lower the cost of equipment, materials, engineering services etc … this will be expensive posturing.
Other reasons can't be mentioned here.

 

[Snagglefoot]

It was carnage with oil and gas stocks in both CANADA and the US. Even companies with significant refining capacity got hammered. However, as long as the interest payments are being made there is no point in calling in the loans. The model in Canada is that drilling is curtailed and decline rate sets in; about 30% in year one, then 20% in year two, as there is not enough drilling to replace production. I'm talking about frac'd wells, not oil sands production. Canada's shale industry is a bit different as we tend to target condensate and the gas that comes with it. The condensate is mixed with the bitumen from oilsands production to make it pipeline grade (WCS). By the way, it gets complicated in that half the oilsands production is processed into synthetic oil and does not need condensate, the other half is raw bitumen that simply gets diluted. In any case the companies obtaining hydrocarbons through fracking are not in good shape.

 

[Little_Lebowski]

Make money on oil now before demand goes down with alternative energy???

 

[honeeagle]

There is no alternative to oil -except for fusion. Oil is chemical, most alternatives are just storage (battery/hydrogen etc)Fusion is our only hope.

 

[BMWTurboDzl]

Originally Posted by Little_Lebowski
Make money on oil now before demand goes down with alternative energy???


Russia has been playing nice with OPEC by curtailing production in order to try to create a floor on prices. IMO due to a drop in worldwide demand Russia is in desperate need for currency and a nice side benefit is that they will bankrupt debt-laden shale producers. Basically it's a game of chicken. Drive down the price to put the competition out of business and then raise the price. The ironic part is that the rebound in prices very well may accelerate EV adoption and make the situation worse for them in the long run.

 

[Kestas]

Originally Posted by honeeagle
There is no alternative to oil -except for fusion. Fusion is our only hope.

Fusion has its problems as well, or else all electricity would've been from fusion by now. For one, the process is 10 times harder on the first wall of the reactor than with fission.

 

[honeeagle]

Fusion is very hard but they have not given up,dont really have a choice , ya neutron erosion is a big issue ,I guess the work around is easy replacement of the affected part(s)

 

[OVERKILL]

Originally Posted by honeeagle
There is no alternative to oil -except for fusion. Oil is chemical, most alternatives are just storage (battery/hydrogen etc)Fusion is our only hope.

Fission works just fine, and unlike fusion, it works right now.