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Here's published numbers where Exxon only needs $26.90 to make a profit on New Mexico shale[1]. US producers are much more globally competitive than the general
by bretpiatt 6y ago
Here's published numbers where Exxon only needs $26.90 to make a profit on New Mexico shale[1]. US producers are much more globally competitive than the general media narrative (I'm mostly a tech person in Texas but I socialize with energy folks a good bit).
[1] https://www.cnbc.com/2020/03/16/reuters-america-analysis-few-u-s-shale-firms-can-withstand-prolonged-oil-price-war.html https://www.cnbc.com/2020/03/16/reuters-america-analysis-few...
- AtlasBarfed 6y agoI wrote this elsewhere, but I'm sure such prices require a certain amount of demand to keep the scale of production high enough. But if demand falls that saudi oil can handle all the demand, and the Saudis know that wind/solar/EV is going to kill off oil so they better make money while they can (which is why they sold off Aramco), then they will sell what they can to keep it under what is profitable for the US alternative sources.
- chii 6y ago> why they sold off Aramco they barely sold off a 1.5% stake, and sold it to their own citizens, who are "forced" to buy it.