“It’s Close To Madness!”: Shale Is Going To “Destroy The Oil Industry,” Analyst Shrieks
FGE Chairman Fereidun Fesharaki thinks maybe US shale oil producers are on a suicide mission to destroy the world.
In a Tuesday note, Fesharaki said what we've been saying for months. Namely that this ramp in US production is a road to nowhere. Fesharaki calls it "effectively a path to self-destruction."
We've long said OPEC can wait this out and let US-based producers pump themselves into an early grave. Don't forget, the Saudis can borrow to plug budget gaps. There is no imminent fiscal cr
I think he is a bit misinformed about how well they are hedged. And if they can make money on what they produce until mid 2019 why not go for it while you can? The only losers will be those holding HY energy when it does eventually tank.
The stinking “Big Oil” vultures are playing the death game of, where is the best place to start there oil war. At this point the only way to move the price oil is with “blood”. Does ANYONE think that oil execs anywhere give a sh*t about the repercussions of a “good old conflict” that kills many people BUT pushes the price of “blood oil” up even a penny. Russia, Saudi Arabia, Iran, and probably a few other countries will bring this problem to a head and drop the first bombs of the next world war. We (our own oil vultures) will sit gleefully on the sidelines as the money starts flowing as the blood oil spills.
I am sorry Curt, but your comment is one dimensional and rather juvenile. I simply ask you a question – do you think any of “big” (a demeaning adjective used by the 1960’s agitators against American capitalists – call any industry you are against “big”) employers have sons and daughters that are currently serving in the US military? You know the answer and you know none of them would foolishly send their offspring to death for no good reason. It is true that blood and oil were behind every conflict in the 20th century, and not much has or will change this century, but no oil company or its personnel sets out to start a war just to manipulate the pricing bets. That is absurd and ignorant, to put it mildly.