article: "SHALE BUST HAS BEGUN WITH A FURY"

Hopefully the natural gas will be our saving grace....

http://www.theburningplatform.com/2014/12/03/shale-bust-has-begun-w...

In the last few days I’ve noticed a plethora of news stories from the usual suspects in the corporate mainstream media about how shale oil producers can still make a profit with oil selling for $66 a barrel. All of a sudden their breakeven costs are supposedly $40 per barrel or lower. That’s funny, because every legitimate estimate prior to this year was that oil needed to stay above $80 per barrel just so they could breakeven. When you see the new propaganda, you realize the entire shale miracle is nothing more than a Wall Street hyped debt financed Ponzi scheme. The Wall Street shysters are sending out their mouthpieces to lie, obfuscate, and mislead the public into thinking this fraud is still legitimate. The MSM pundits don’t even question the lies because their living depends upon perpetuating the lies.

The truth is revealed by the actions of the participants in the shale boom. The companies whose existence depends upon generating profits and cash flow will always take actions that will be in their own self interest. No company purposely takes actions to lose more money. All of the happy talk was just revealed to be false. 

New shale oil wells are expensive to begin and are 90% depleted after 2 years. Those are facts. Permits for new wells absolutely COLLAPSED in November. A 40% decline in one month is an epic collapse. If the Wall Street shysters were telling the truth and breakeven costs are really $40 per barrel, why would drillers stop drilling new wells when oil prices are $66? They wouldn’t. 

The shale oil boom is only sustainable at $100 a barrel oil. The Arabs know it. The big oil companies know it. The drillers know it. And the Wall Street shysters know it. The peak in U.S. oil production has arrived again, until prices go back up to $100 a barrel.

Facts don’t cease to be facts because they are ignored. Reality really is a bitch.

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Permalink Reply by Joseph-Ohio on December 5, 2014 at 3:23pm
Starting to see your point.

The only other thing that would appear to work to assist the bottom line would be to improve development and production efficiency and drill drill drill and produce produce produce. If that route were taken I wonder if that 50 year production window (Irene Haas spoke of) would grow shorter ? In other words wondering if the 50 year production window is based on delaying / spreading out development of prime production acreage over the suggested 50 years ?

Good luck on your well frank s.
Permalink Reply by cj wyalusing on December 9, 2014 at 2:46pm

It sounds like your a young man lol 

Permalink Reply by Dexter Green on December 5, 2014 at 6:32pm

All Bakken producers are not created equally.  EOG is profitable at $50/bbl WTI pricing because their franc designs and acreage are so outstanding.  Anyone not in Parshall, Antelope, or Sanish fields is looking at cutting capex if prices keep dropping.  Keep in mind that Bakken oil price differentials are ~$10/bbl for most producers.  

Permalink Reply by Martha Stevens on December 5, 2014 at 2:53pm
Although we are not as dependent on OPEC as were prior to the '70's, clearly they are still making us dance to their tune. They Saudis seem to only use their oil supply to manipulate world politics. I suppose, being that money is NEVER going to be a concern for them, what else would they do? If America could manage this resource to the point that we, too could forget about the money and focus on the power, the world would be a very different place. Alas, America is currently the land of mismanagement. From our industries right on up through the government mismanagement is the accepted norm. I can about guarantee that this incredible resource will somehow be mismanaged to the point where only a very select few will benefit.
Permalink Reply by Joseph-Ohio on December 5, 2014 at 2:57pm
Up is down and down is up.
Yes means no and no means yes.
2 + 2 is anything but 4.
Seems to me the way things are being run these days anyway.
Permalink Reply by frank speaker on December 5, 2014 at 3:15pm

Money means an awful lot to the Saudis as they use it to keep their citizens happy. How else would one family stay in power for over ninety years in these times? Money is power.

Permalink Reply by bo boboski on December 6, 2014 at 1:39am

The U.S. gubment has a Muslim/Kenyan as a president. What do you expect?

Permalink Reply by S S C on December 5, 2014 at 3:29pm
Markets go up and down and commodities most of all. Oil has always been boom and bust. It's always going to be that way. It's going to go up again. There is no trick to it. Just wait.
Permalink Reply by Trapper on December 5, 2014 at 3:39pm
It remains to be seen what affect OIL prices have on GAS exploration.
The vast majority of us in the Utica/Marcellus play are more interested in gas and wet gas production. Simply put , we are not involved in oil rich regions and crude prices may have more of a positive affect,rather than a negative one. If in fact crude prices fall below profitable , shalewise , perhaps rigs will be shifted to gas drilling.....
Permalink Reply by jason irvine on December 5, 2014 at 3:53pm
I think oil was inflated in value which tends to happen when a organization controls the prices and not the market. That is why oil equivalent is not balanced concerning the value. The price for gas that is equivalent to oil is very low.

This has made gas attractive thus increasing demand. Gas is still attractive and should stay that way as long as it stays that way.

I believe there will be a push for wet gas in the stacked play. There is more to get and the returns are still attractive. All this will do is eliminate the not so attractive areas for awhile.
Permalink Reply by Trapper on December 5, 2014 at 4:32pm
I totally agree. Oil has been way overpriced for years. With ethane crackers in the works for the Ohio River valley,I believe this area has a bright future regardless of the price of crude oil.
In the meanwhile let's all enjoy cheaper gasoline and heating oil and smile as Russia loses its grip while we grow a stronger economy!
Permalink Reply by jason irvine on December 7, 2014 at 3:13pm
I like the way you think trapper

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