InformedTrades http://www.informedtrades.com/1909911-%5Btext%5D-chen-lin-how-long-till-oil-goes-100-what-conditions-kill-shale.html
http://www.theenergyreport.com/pub/n...ve+Articles%29
"TER: How long before oil prices again reach $100/bbl? CL: It's hard to say. The lower oil price will decrease production, but not immediately. This will occur in 2–3 years. As I see it, the drop in oil price will actually help the price reach $100/bbl in the future. Many oil companies are now reducing capital expenditures (capexes), so exploration is being curtailed. Fracking companies are reducing their activities. Ultimately, this must lead to higher prices. TER: Lower oil production will lead to higher oil prices, but lower gold production hasn't led to higher gold prices. What's the difference? CL: We cannot live one day without energy, without oil. Without oil, we cannot drive our cars, get to our jobs, heat our homes. We can, however, live without gold for a few years. Gold is more of a financial instrument than a commodity. TER: How much damage will oil at less than $70/bbl cause to shale oil and oil sands operations? CL: Many companies in these spaces are cutting capexes by 20–30% for next year. Production could be down 20-30% in 2–3 years. TER: Shale oil and oil sands operations are, by their nature, very high capex. And shale oil wells don't produce for long. Could three years of $70/bbl oil kill off shale oil? CL: No. I have checked with a lot of companies—some I own, some I follow—and the word is that prices of $50–60/bbl would be needed to kill shale oil."
"TER: How long before oil prices again reach $100/bbl? CL: It's hard to say. The lower oil price will decrease production, but not immediately. This will occur in 2–3 years. As I see it, the drop in oil price will actually help the price reach $100/bbl in the future. Many oil companies are now reducing capital expenditures (capexes), so exploration is being curtailed. Fracking companies are reducing their activities. Ultimately, this must lead to higher prices. TER: Lower oil production will lead to higher oil prices, but lower gold production hasn't led to higher gold prices. What's the difference? CL: We cannot live one day without energy, without oil. Without oil, we cannot drive our cars, get to our jobs, heat our homes. We can, however, live without gold for a few years. Gold is more of a financial instrument than a commodity. TER: How much damage will oil at less than $70/bbl cause to shale oil and oil sands operations? CL: Many companies in these spaces are cutting capexes by 20–30% for next year. Production could be down 20-30% in 2–3 years. TER: Shale oil and oil sands operations are, by their nature, very high capex. And shale oil wells don't produce for long. Could three years of $70/bbl oil kill off shale oil? CL: No. I have checked with a lot of companies—some I own, some I follow—and the word is that prices of $50–60/bbl would be needed to kill shale oil."
No comments:
Post a Comment