Just who is producing oil – and how much? … Who are the players?
Just which players are losing money and which ones are making money?
Will Canadian businessmen and US businessmen choose to sell oil at a loss?
Just what are Russia’s real costs? … Canada’s real costs? … USA’s real costs?
Basic Story: US oil production from the new North Dakota & Montana oil shale fields is driving down world oil prices – as the US oil boom has grown to 1.1 million barrels a day – surpassing Iran’s output.
Some news sources like the Washington Post are flogging reports of $40 a barrel oil due to “$42 per barrel” US costs – or even “$30 a barrel” Canadian costs – but these WaPo quoted “experts” really don’t fit the realities of actual US production costs – and that 1.1 million bbl per day for USA is just 1.2% of the world’s daily output of 92 million bbl/day.
Experts on the US Bakken Shale (North Dakota) production costs instead say: “$70 a barrel could cut production 28 percent to 800,000 barrels a day by February from the 1.1 million barrel current levels.” http://www.bloomberg.com/news/2014-10-21/oil-at-80-a-barrel-muffles-forecasts-for-u-s-shale-boom.html
Sharp readers may realize that countries whose governments rely on crude oil sales, are facing some real problems, especially Russia, Iran, Venezuela, and Nigeria … whose governments are currently selling oil at huge losses.
. . . (see main article What’s Going on with Oil Prices? )
… Coincidentally, $80 a barrel is the typical NYMEX crude price that American and Canadian producers need to make tidy profits, so, smart thrifty expats in Mexico could decide to buy your pesos now – while oil prices are below the $80 a bbl benchmark….
… For more details on this, please see our main article at:
What’s Going on with Oil Prices?
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