If you like having gas for your car, food in the stores, and turning lights on after dark, here’s good news: Outlook for energy looking brighter.
Outlook for energy production in the US is getting better and better. Might want to get out your sunglasses.
- Low oil prices have spurred innovation amongst US drillers; file this under unintended consequences for OPEC.
- Breakeven prices in US shale approaching that of OPEC producers; ponder that the breakeven price for Saudi Aramco is not the same as breakeven price for the Saudi government.
- Overview of news in 2016 for oil & gas; good news for companies that survived the year.
12/2 – Tyler Morning Telegraph – Saudis awakened a sleeping giant when they declared war on fracking – Editorial says the Saudis made a serious mistake waking up the slumbering giant of fracking land. The artificially high prices allowed the frackers to get started. The artificially low prices forced them to innovate, cut costs, and start producing at breakeven points competitive to the OPEC giants. Not a good move.
Wouldn’t it be grand if that paragraph was the four-sentence history of fracking?
Production costs are half what they were two years ago.