Hi to all,
Here’s what I have for this week’s price changes:
*Heating/stove oil to increase by 1.7 cents a litre.
*Diesel fuel to increase by 7/10ths of a cent per litre, and...
*Gasoline shows an increase of 2.2 cents a litre.
Saudi Arabia rules the oil news
A heir-apparent has taken the focus in the news this week as Mohammed Bin Salman, the next ruler of Saudi Arabia, had his security forces out on Sunday making mass arrests and detentions of any potential rivals to his throne.
Oil has risen almost $3 US to hit $64 US for Brent crude since news broke of the mass arrests.
While not seen as an immediate threat to Saudi Arabian governance, it has been seen as clear evidence that there is considerable unrest in the lead OPEC oil producing nation.
Riding the tails of a revival in crude prices is a projected increase to US shale output in the coming months as U.S producers capitalize on rising oil prices, but they could be running into a problem...
If shale output can’t keep up...
According to a story through CNBC, U.S shale output may be experiencing a problem caused by the last collapse in oil prices.
The problem is simple: they can’t get the drill-bits into the ground fast enough.
Drillers are simply not willing to take so much financial risk without putting their businesses in order to survive a downturn again. The story from Morgan Stanley also says that U.S production won’t be able to step in and fill the drop in production of 1.8 million barrels a day in production that OPEC is thinking about extending past the March 2018 deadline.
There could be hope here...
With the rising price of oil and slower prospects in the U.S, is there hope then for pooled resources such as we have here offshore?
Pooled resources tend to be longer lasting and with less financial risk involved with field longevity.
If oil is supported in price by slowing U.S shale output, it stands to reason major explorers will step back into long term projects. Outside of other countries trying to develop shale resources, there’s better hope we can deliver from our own offshore.
That’s it for this week!