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http://www.mineralrightsforum.com/profiles/blogs/fracklog-and-what-it-mean
Buddy, I've been thinking along those lines too. Do you think the wells will continue to be drilled and await $60-$70 oil before finishing them. Some high cost companies will go out of business. This looks to me like oil price will have a lot of trouble getting over $70. The possibility that Saudis will just decrease their production as much as ours rises I would think is not much of a possibility which is about the only way prices might increase. As long as the world kind of stays somewhat stable do you see any reason oil could get back to $100 on a longer term basis? Thanks.
It's really a Fool's Errand to try to predict oil prices. Why, the bald dude on Shark Tank was on CNBC just a few weeks ago, and guaranteed $35 oil. As soon as he said that, it seemed as though prices bottomed and oil shot up out of the 45 dollar range into the mid-50s, lol. I wish he would keep talking.
Obviously, rigs will continue to be stacked. When they do decide to start more fracking in a large, or hurried scale, they will have to wait in line. The service won't be as readily available because of fracking cos. going under, and the personal won't be there. Many will leave the industry after a bust, as always happens, and not return.
It's also possible that the Saudis will see the results they have wanted all along sooner than expected, wreaking havoc on the U.S. shale industry, and reverse their current policy ,i.e., cut production to drive up prices.
In the end, no one really knows what is going to happen, especially the bald, condescending guy on Shark Tank.
BP's former CEO, Tony Hayward, disagrees with the bald guy on Shark Tank. Hayward says that the price of world crude will soon hit $80.00. "The peak of U.S. shale has arrived - earlier than anticipated. The supply chain in the U.S. has been decimated...It will take several years to take activity back."
Others disagree with Hayward.
Dave Quincy said:
It's really a Fool's Errand to try to predict oil prices. Why, the bald dude on Shark Tank was on CNBC just a few weeks ago, and guaranteed $35 oil. As soon as he said that, it seemed as though prices bottomed and oil shot up out of the 45 dollar range into the mid-50s, lol. I wish he would keep talking.
Obviously, rigs will continue to be stacked. When they do decide to start more fracking in a large, or hurried scale, they will have to wait in line. The service won't be as readily available because of fracking cos. going under, and the personal won't be there. Many will leave the industry after a bust, as always happens, and not return.
It's also possible that the Saudis will see the results they have wanted all along sooner than expected, wreaking havoc on the U.S. shale industry, and reverse their current policy ,i.e., cut production to drive up prices.
In the end, no one really knows what is going to happen, especially the bald, condescending guy on Shark Tank.