U.S. shale oil procuders are warning OPEC not to lower production

Global Economy

Oil & Gas

Less than a year ago major shale firms were saying they needed oil above $60 a barrel to lift up their production level.

The threat of a shale rebound is ‘putting a cap on oil prices’ and if there is some bullish outlook for demand or the economy, the shale producers will try to get ahead of the curve and increase production even sooner.

If the OPEC measures will help pushing the oil prices back up to $40 to $45 per barrel, the American shale producers will dump the oil markets with excessive oil, to put a maximum $50 cap on the world’s oil prices. Just enough to choke its enemy oil producers, such as Nigeria, Iraq, Russia, Iran and Venezuela.

While the worst oil downturn since the 1980’s sounds the death knell for scores of debt-laden shale producers, Deloitte auditing and consulting warns that a third of U.S. oil producers may face bankruptcy.

It is no longer enough to be the low cost producer in U.S. horizontal shale, the oil industry’s goal is to be competitive , low cost oil producer in the global market.

Yahoo Finance / AA edited News 2016.

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