Hey Forbes ….we cannot compete w/ Saudis’ $6 cost/bbl oil when U.S. costs $69 bbl

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hey Forbes….

 

UPDATE here is a link entitled…

We Think It Is A Mistake To Be Long-Term Bullish On Natural Gas

Jun. 17, 2016
Some highlights:
In contrast to oil, “… if natural gas prices were to rebound it would be very easy for producers to quickly overwhelm any supply shortage by increasing drilling.”
BECAUSE….
“….shale oil represents roughly five million barrels per day out of global demand that is 96 million (that would be 5% of demand) while natural gas production in North America represents more than 50% of total demand”.
———————

 

Since my comments are not posting I’ll put them here on today’s article…

http://www.forbes.com/sites/christopherhelman/2016/01/07/oil-plunges-as-china-spooks-global-markets-time-to-buy/?utm_source=followingimmediate&utm_medium=email&utm_campaign=20160107

In response to some ludicrous comments such as…

“All that’s left now is hope. It’s not much of a strategy, but it beats the alternative”……what alternative?….. alternative energy?…like the solar energy resources those Saudi’s have such great access too?

“Saudi Aramco’s average cost per barrel is less than $6, according to those in the know”. That is because they extract oil the old school (inexpensive) way. 

Last year almost to the day, Fortune writer Shawn Tully wrote ..

The shale oil revolution is in danger

and reported “….breakeven cost for U.S. hydraulic shale is $65 per barrel, according to a study by Rystad Energy and Morgan Stanley Commodity Research”.

And with the old school drilling the Saudis don’t have to worry about the hyperbolic decline curve in production that plagues shale gas and oil as Tully wrote…

“….by the start of year two, a shrinkage of 72%. By the beginning of year three, more than half the reserves of that well will be depleted, and annual production will fall to a trickle. To generate constant or increasing revenue, producers need to constantly drill new wells… need to dig new holes, year after year, to extract reserves of copper or iron ore. In fracking, there is intense pressure to keep replacing the production you lost last year”.

Another one of the Forbes writers named Conca did a (disingenuous) visual comparison of conventional fracking to a jelly donut verses fracking’s tiramisu.

Forbes’ other writer, Catusa did a 2011 story/analysis with predictions as to which countries would/could? follow the US and jump on the fracking bandwagon for Unconventional Oil In The Middle East.

 

Maybe Forbes writers should start reporting on how many solar success stories are awaiting anywhere the sun shines, or how batteries are evolving to store solar energy when the sun is not shining.

The US will never be able to compete with the Middle East for fossil fuels… give-it-up!

But that Texas’ wind….now that’s some stock we should all bet on!!!

Here is the top 5 NG stocks in case you really like a gamble

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About Kim Triolo Feil

Since TX Statute 253.005 forbids drilling in heavily settled municipalities, I unsuccessfully ran for City Council Seat to try to enforce this. Since Urban Drilling, our drinking water has almost tripled for TTHM's. Before moving to Arlington in 1990, I lived in Norco’s “cancer alley”, a refinery town. It was only after Urban Drilling in Arlington did I start having health effects. After our drill site was established closest to my home, the chronic nosebleeds started. I know there are more canaries here in Arlington having reactions to our industrialized airshed (we have 55-60 padsites of gas wells). Come forward and report to me those having health issues especially if you live to the north/northwest of a drill site so I can map your health effects on this blog. My youtube account is KimFeilGood. FAIR USE NOTICE: THIS SITE MAY CONTAIN COPYRIGHTED MATERIAL THE USE OF WHICH HAS NOT ALWAYS BEEN SPECIFICALLY AUTHORIZED BY THE COPYRIGHT OWNER. MATERIAL FROM DIVERSE AND SOMETIMES TEMPORARY SOURCES IS BEING MADE AVAILABLE IN A PERMANENT UNIFIED MANNER, AS PART OF AN EFFORT TO ADVANCE UNDERSTANDING OF THE SOCIAL JUSTICE ISSUES ASSOCIATED WITH EMINENT DOMAIN AND THE PRIVATIZATION OF PUBLIC INFRASTRUCTURE (AMONG OTHER THINGS). IT IS BELIEVED THAT THIS IS A 'FAIR USE' OF THE INFORMATION AS ALLOWED UNDER SECTION 107 OF THE US COPYRIGHT LAW. IN ACCORDANCE WITH TITLE 17 USC SECTION 107, THE SITE IS MAINTAINED WITHOUT PROFIT FOR THOSE WHO ACCESS IT FOR RESEARCH AND EDUCATIONAL PURPOSES. FOR MORE INFORMATION, SEE: HTTP://WWW.LAW.CORNELL.EDU/ TO USE MATERIAL REPRODUCED ON THIS SITE FOR PURPOSES THAT GO BEYOND 'FAIR USE', PERMISSION IS REQUIRED FROM THE COPYRIGHT OWNER INDICATED WITH A NAME AND INTERNET LINK AT THE END OF EACH ITEM. (NOTE: THE TEXT OF THIS NOTICE WAS ALSO LIFTED FROM CORRIDORNEWS.BLOGSPOT.COM)
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