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Nairaland Forum / Nairaland / General / Politics / The Shale Boom Has Already Gone Bust - At Least For Now (1362 Views)
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The Shale Boom Has Already Gone Bust - At Least For Now by Kei144(m): 6:39am On May 04, 2015 |
The meteoric rise in U.S. oil production has ended, easing a global glut and driving a rebound in crude prices from below $50 a barrel, according to crude trader and hedge fund manager Andrew J. Hall. http://www.bloomberg.com/news/articles/2015-05-03/the-shale-boom-has-already-gone-bust-at-least-for-now?cmpid=yhoo There seems to be hope for the economy. |
Re: The Shale Boom Has Already Gone Bust - At Least For Now by jimi4us: 7:43am On May 04, 2015 |
Saudi Arabia have shown dem pepper. they've been hyping war and break up in every oil producing countries just to shut them down. but Saudis and Russia won't allow their shale oil to boom. instead Saudis have to increase their output to 12m barrels a day. in the whole oil bearish the losers are Venezuela, Iraq, Iran , Nigeria and Russia. the countries that have saved more than a enough for the next 20years are the winners. Saudis , Kuwait |
Re: The Shale Boom Has Already Gone Bust - At Least For Now by theV0ice: 7:54am On May 04, 2015 |
Every sensible analyst knew the Saudi solution of refusing to drop production was the best. Eventually the cost of producing shale oil was going to be too high to sustain amidst sliding oil prices. This is an example of a country though very much allied with the west particularly America, refused to be teleguided by them. They were able to do this because they had leaders who wanted the best for their country and had saved up enough for the rainy day. Being friends with America doesn't mean you can't look them in the face and stand your ground once in a while. 1 Like |
Re: The Shale Boom Has Already Gone Bust - At Least For Now by esere826: 7:55am On May 04, 2015 |
Kei144: Not really From what I learnt, shale becomes quite profitable to US producers only after the price of oil reaches some $60 to $80 per barrel I think what this means is that once OPEC oil prices start going up again, America companies will start producing their shale oil in bulk. thereby putting a downward pressure on the price of oil to remain between $60 to $80 per barrel.. The only thing that can upset this delicate balance is if there is strong growth in one or more of the big economies thus leading to an increased demand for oil. Or, if one of the big oil producers encounter a situation such as war which would mean that supply would be reduced |
Re: The Shale Boom Has Already Gone Bust - At Least For Now by tpiadotcom: 8:00am On May 04, 2015 |
Hm So what happens now? |
Re: The Shale Boom Has Already Gone Bust - At Least For Now by esere826: 8:02am On May 04, 2015 |
Kei144: ...and besides i think we should let go of this oil business as a determinant of our economic success if we continue to insist that our wealth as a country would be dependent on oil then i'm afraid those whose villages sit on the oil wells and oil pipeline routes would by necessity gradually determine the fate of project Nigeria |
Re: The Shale Boom Has Already Gone Bust - At Least For Now by PassingShot(m): 8:04am On May 04, 2015 |
Interesting to know that low crude price does not bode well for USA's shale oil success as well. Even though the era of + $100 per barrel is not likely to return, it is reasonable to expect it to stabilize at around $70 a barrel. And once our economy is diversified over the next four years, our reliance on oil for foreign earnings will reduce which in turns takes off pressure brought about by the fall in crude price. |
Re: The Shale Boom Has Already Gone Bust - At Least For Now by Nobody: 8:21am On May 04, 2015 |
If Buhari wanna succeed, he nids to diversify d economy instead of depending on out oil He seems clueless |
Re: The Shale Boom Has Already Gone Bust - At Least For Now by Sweetguy25: 8:41am On May 04, 2015 |
And to think that the US barely exports its oil even though they are largest producers of oil at the moment. I don't see oil prices going higher than 65 dollars for the next 12 months. Besides, one of the most difficult tasks facing us is finding buyers for our crude. The US has about three oil fields that produces the same type of oil like that of Nigeria, the embargo lifted on Iran makes it worse. |
Re: The Shale Boom Has Already Gone Bust - At Least For Now by ola6: 8:43am On May 04, 2015 |
esere826: Words on marble!!! This is Buhari's first challenge. This our oil thing needs to stop! After all, we never had our cocoa or groundnut era. |
Re: The Shale Boom Has Already Gone Bust - At Least For Now by Sweetguy25: 9:23am On May 04, 2015 |
esere826: My brother, lets be realistic. Apart from oil, how else will the federal government generate revenues of over 50 billion dollars in a fiscal year over the next 10 years? How possible is it? Lets not kid ourselves, our dependence on oil is here to stay, there's nothing we can do about it. People say diversify the economy but how? Our economy is already diversified but it is too small and disorganized to enable diverse revenue streams for the federal government. |
Re: The Shale Boom Has Already Gone Bust - At Least For Now by poiZon: 9:43am On May 04, 2015 |
Sweetguy25: so true n on point. nigerian economy isnt monolithic as people think, gej did something in dat diversification thing but the problem is oil money will always overshadow any input from other sectors. |
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