MercoPress. South Atlantic News Agency
Oil price war may benefit both US Shale and Saudi Arabia
Even as financial commentators on CNBC are starting to come around to the idea of a bottom in oil prices, the key question for US oil producers remains one of timing. How long will the oil price slump last? Is this a relatively short term event like 2008, or a longer term slump like the one in the mid 1980’s? Read full article
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Disclaimer & comment rulesSo in other words the biggest losers because of these low prices will be everyone other than the US and Saudi Arabia!
Apr 25th, 2015 - 01:00 pm - Link - Report abuse 0The biggest losers will be countries such as Russia, Venezuela and Brazil it would seem.
That won't help Petrobas - too bad for Stevie, Brasso, and the Bolivarian Miracle!
Apr 25th, 2015 - 05:57 pm - Link - Report abuse 0Bad year for south America then...
Apr 25th, 2015 - 06:52 pm - Link - Report abuse 0There thousands of US Shale operators, innovation was, is and will always be part of their game, so they will find ways to lower their costs. Saudi Arabia is getting hit the hardest by the drop in oil prices, and they can only hold on to this strategy for so long. There´s also one factor the OPEC big oil producers never took into account: demand destruction, when you maintain very high oil prices, above 120 USD per barrel, for a prolonged period of time, people begin to change their consumption habits in a long term way, buying more gas-efficient cars or if possible switching to hybrid cars, driving less, putting solar panels in their homes, so part of the oil demand has been destroyed in the past years of super high oil prices. We´re going to live with ever declining oil prices for decades, in the process new energy technologies will consolidate and oil will become what coal is today, and old, dirty and inefficient energy source.
Apr 26th, 2015 - 01:02 pm - Link - Report abuse 0Commenting for this story is now closed.
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