If The Oil Plunge Continues, ‘Now May Be A Time To Panic’ For US Shale Companies
Over the past 5 years, the shale industry, fabricated or real reserves notwithstanding, has been a significant boon to the US economy for four main reasons: it has been the target of billions in fixed investment and CapEx spending, it has resulted in tens of thousands of high-paying jobs, its output has been a major tailwind for the US trade deficit, and has generally been a significant contributor to GDP (not to mention various Buffett-controlled or otherwise railway corporations). And perhaps, most importantly, it has become a huge buffer to the price of global oil, as the cost curve of US shale is horizontal, with a massive 10,000 kbls/day available within pennies of $85/bl.
Obama May Have Just Dealt A Crushing Blow To Russia’s Oil Exploration
New U.S. sanctions handed down on Friday are designed to effectively “shut off” Russian oil conglomerates from oil exploration projects, U.
China Deploys Soldiers to South Sudan to Protect Oil Interests
China is deploying 700 soldiers to South Sudan to protect the only oil fields “still under control of the central government in Juba.” The soldiers will also protect “Chinese workers and installations.” The soldiers join a United Nations peacekeeping force and “will operate under UN command.
Scotland Nationalists Claim U.K. Oil In 40-Year Campaign
The discovery of North Sea riches in the 1970s planted the seed of modern-day Scottish nationalism as supporters of independence cried “It’s our oil!” Four decades later, nothing will be more important to the economic future of Scotland than the oil industry should the country vote to end the 307-year union with the rest of the U.K.