Vigilante
Diamond Member
- Banned
- #1
Real Clear Markets ^ | October 6,2015 | Mark Mills
Here's the rub: A new normal price of even $60 remains economically devastating for OPEC at large, for the Middle East, and, in particular, for Russia. But a $60 price (it's still $45 at press time) would re-ignite a profit-seeking land rush in America's shale fields. Russian oil experts likely remember that the rise of America's shale began when oil was below $60. And it was wildly profitable back then with technology and techniques that were half as efficient as those now available. Thus the emerging global petroleum pricing problem for Russia is severely constrained by the sheer quantity of...
Putin raises prices, America starts fracking again with a decent profit... BUT he needs at least $60 a BBL for Russia failing economy...WHAT shall he do?
Here's the rub: A new normal price of even $60 remains economically devastating for OPEC at large, for the Middle East, and, in particular, for Russia. But a $60 price (it's still $45 at press time) would re-ignite a profit-seeking land rush in America's shale fields. Russian oil experts likely remember that the rise of America's shale began when oil was below $60. And it was wildly profitable back then with technology and techniques that were half as efficient as those now available. Thus the emerging global petroleum pricing problem for Russia is severely constrained by the sheer quantity of...
Putin raises prices, America starts fracking again with a decent profit... BUT he needs at least $60 a BBL for Russia failing economy...WHAT shall he do?
