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.
Fingers crossed...
That’s it for this
week!
Regards,
George Murphy
Twitter
@GeorgeMurphyOil
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