Wednesday, December 16, 2015

U.S. Oil And Gas Production Steady Despite Low Prices

I've always thought it a bad idea to bet against the Capitalist.  This is a good example.

The take-away quote from this article from Oil and Gas Online:
“Several factors support U.S. oil and gas production, even at lower prices,” said Bernadette Johnson, a managing partner at Ponderosa and head of the company’s energy analytics team. “Wellhead economics continue to improve as technology gains cut drilling and completion costs. And while we expect U.S. production will trend lower in 2016, our analysis shows there are almost 4,200 drilled but uncompleted wells in inventory, and they will bring additional production as they are brought online.”
In my opinion, the destruction to Saudi Arabia's economy will be severe.  Even after they "win" the oil price war, it will be a long time before they can recover from what has and will happen to their finances.  Through shear will and determination, Capitalists can carry this game on far longer than you might expect.

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