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Within a year, the US is expected to export about one million barrels of oil a day and produce 12 million barrels a day. Iran, for the same of comparison, manufactures about a million and a half barrels a day.
They're still the lowest cost producers and will make a lot of money and can grab all the market share if they valued that over profits, the thing is the availability of shale oil means that the long-term equilibrium price will tend towards the marginal cost of nontraditional oil extraction, which puts a ceiling on their profits.
I've been saying this for years now. Oil was overpriced before the recent drop and is underpriced now (unless the cost of extraction has fallen since I last researched it) -- it's not the end of the petrostates, it's just a lower equilibrium price. Of course, the adjustment towards that equilibrium will hurt bad for those which haven't built up ample foreign currency and asset reserves. Wouldn't want to be Maduro or Putin right now.
The US consumes close to 20 million barrels per day, so production of 12 million barrels isn't enough to become an exporter. The US has always exported petroleum products but that doesn't mean it is becoming a net exporter.
And as someone said, the oil fields in the Persian Gulf are the cheapest in the world to develop. Production costs are next to nothing, I recall reading like US$1-1.5 per barrel for Ghawar. Whereas all the cheap oil in the US is already gone.
The US consumes close to 20 million barrels per day, so production of 12 million barrels isn't enough to become an exporter. The US has always exported petroleum products but that doesn't mean it is becoming a net exporter.
And as someone said, the oil fields in the Persian Gulf are the cheapest in the world to develop. Production costs are next to nothing, I recall reading like US$1-1.5 per barrel for Ghawar. Whereas all the cheap oil in the US is already gone.
Exactly, not sure what the OP is so excited about.
The US consumes close to 20 million barrels per day, so production of 12 million barrels isn't enough to become an exporter. The US has always exported petroleum products but that doesn't mean it is becoming a net exporter.
And as someone said, the oil fields in the Persian Gulf are the cheapest in the world to develop. Production costs are next to nothing, I recall reading like US$1-1.5 per barrel for Ghawar. Whereas all the cheap oil in the US is already gone.
Not all that relevant. All of the middle east regimes that export oil are wholly dependent upon the revenues from them for their continuation. And not at $10, either. The Saudis need more like 80 to maintain the order of things as it is. Iran's economy is in its death throes, and many of the others, as well, are seeing serious national economic gyrations.
All of these regimes have maintained their hold on the countries and people precisely because they HAVE said revenues. Without them, the level of violence and repression may have to grow dramatically - and if so, the resistance to them will, as well, meaning schisms to exploit and destabilization.
I'm not all that concerned about many of them falling. I am concerned that what follows them could be even worse.
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And as someone said, the oil fields in the Persian Gulf are the cheapest in the world to develop. Production costs are next to nothing, I recall reading like US$1-1.5 per barrel for Ghawar. Whereas all the cheap oil in the US is already gone.
Well then what do you think of the following:
Quote:
Billionaire Prince Alwaleed bin Talal has lashed out at the Saudi fiscal policy after projecting the largest-ever budget deficit for 2015 following the slump in oil prices.
IMHO you're right. Tho what the US needs to do is slap a tax on oil to keep it at 50 dollars a barrel on any that's imported. In other words; if a barrel's going for 30, then tax it 20. If oil goes OVER 50 dollars, then the tax goes off. THAT would kill OPEC real quick.
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