U.S. oil output crimping OPEC

[Maddog]

OPEC's bad dream only deepens next year, when Permian producers expect to iron out distribution snags that will add three pipelines and as much as 2 million barrels of oil a day.

"The Permian will continue to grow, and OPEC needs to learn to live with it," said Mike Loya, the top executive in the Americas for Vitol Group, the world's largest independent oil-trading house.

The U.S. energy surge presents OPEC with one of the biggest challenges of its 60-year history. If Saudi Arabia and its allies cut production when they gather Dec. 6 in Vienna, higher prices would allow shale to steal market share. But because the Saudis need higher crude prices to make more money than U.S. producers, OPEC can't afford to let prices fall.

Even so, Saudi Arabia's output swelled to a record this month, according to industry executives. That means the three biggest producers -- the U.S., Russia and Saudi Arabia -- are pumping at or near record levels.

A similar scenario unfurled in 2016, when Saudi output rocketed just before OPEC agreed to cuts. This time the cartel's 15 members, and allies including Russia, Mexico and Kazakhstan, will discuss the possibility of their second retreat in three years from booming American production.

OPEC helped create the monster that haunts its sleep. After it flooded the market in 2014, oil prices crashed, forcing surviving U.S. shale producers to get leaner so they could thrive even with lower oil prices. As prices recovered, so did drilling.

Now growth is speeding up. In Houston, the U.S. oil capital, shale executives are trying out different superlatives to describe what's coming.

"Tsunami," they call it. A "flooding of biblical proportions" and "onslaught of supply" are phrases that get tossed around. It's best to take the hyperbolic industry talk with a pinch of salt, but certainly the American oil industry, particularly in the Permian, has raised a buzz loud enough to keep OPEC awake.

"You've got an awful lot of production that can come in very economically," said Patricia Yarrington, Chevron's chief financial officer. "If you think back four or five years ago, when we didn't really understand what shale could do, the marginal barrel was priced much higher than what we think the marginal barrel is priced today."

https://www.arkansasonline.com/news/201 ... -20181125/

We have no need for Saudi Arabia. Other countries sure as hell do, but we don't. We continue to find ways to make a profit with lower and lower oil prices.

[Guest]

OPEC's bad dream only deepens next year, when Permian producers expect to iron out distribution snags that will add three pipelines and as much as 2 million barrels of oil a day.

"The Permian will continue to grow, and OPEC needs to learn to live with it," said Mike Loya, the top executive in the Americas for Vitol Group, the world's largest independent oil-trading house.

The U.S. energy surge presents OPEC with one of the biggest challenges of its 60-year history. If Saudi Arabia and its allies cut production when they gather Dec. 6 in Vienna, higher prices would allow shale to steal market share. But because the Saudis need higher crude prices to make more money than U.S. producers, OPEC can't afford to let prices fall.

Even so, Saudi Arabia's output swelled to a record this month, according to industry executives. That means the three biggest producers -- the U.S., Russia and Saudi Arabia -- are pumping at or near record levels.

A similar scenario unfurled in 2016, when Saudi output rocketed just before OPEC agreed to cuts. This time the cartel's 15 members, and allies including Russia, Mexico and Kazakhstan, will discuss the possibility of their second retreat in three years from booming American production.

OPEC helped create the monster that haunts its sleep. After it flooded the market in 2014, oil prices crashed, forcing surviving U.S. shale producers to get leaner so they could thrive even with lower oil prices. As prices recovered, so did drilling.

Now growth is speeding up. In Houston, the U.S. oil capital, shale executives are trying out different superlatives to describe what's coming.

"Tsunami," they call it. A "flooding of biblical proportions" and "onslaught of supply" are phrases that get tossed around. It's best to take the hyperbolic industry talk with a pinch of salt, but certainly the American oil industry, particularly in the Permian, has raised a buzz loud enough to keep OPEC awake.

"You've got an awful lot of production that can come in very economically," said Patricia Yarrington, Chevron's chief financial officer. "If you think back four or five years ago, when we didn't really understand what shale could do, the marginal barrel was priced much higher than what we think the marginal barrel is priced today."

https://www.arkansasonline.com/news/201 ... -20181125/

We have no need for Saudi Arabia. Other countries sure as hell do, but we don't. We continue to find ways to make a profit with lower and lower oil prices.

I can't see Boeing, General Dynamics and Lockheed-Martin, amongst others, sharing that point of view.

[Grafenwalder]

OPEC's bad dream only deepens next year, when Permian producers expect to iron out distribution snags that will add three pipelines and as much as 2 million barrels of oil a day.

"The Permian will continue to grow, and OPEC needs to learn to live with it," said Mike Loya, the top executive in the Americas for Vitol Group, the world's largest independent oil-trading house.

The U.S. energy surge presents OPEC with one of the biggest challenges of its 60-year history. If Saudi Arabia and its allies cut production when they gather Dec. 6 in Vienna, higher prices would allow shale to steal market share. But because the Saudis need higher crude prices to make more money than U.S. producers, OPEC can't afford to let prices fall.

Even so, Saudi Arabia's output swelled to a record this month, according to industry executives. That means the three biggest producers -- the U.S., Russia and Saudi Arabia -- are pumping at or near record levels.

A similar scenario unfurled in 2016, when Saudi output rocketed just before OPEC agreed to cuts. This time the cartel's 15 members, and allies including Russia, Mexico and Kazakhstan, will discuss the possibility of their second retreat in three years from booming American production.

OPEC helped create the monster that haunts its sleep. After it flooded the market in 2014, oil prices crashed, forcing surviving U.S. shale producers to get leaner so they could thrive even with lower oil prices. As prices recovered, so did drilling.

Now growth is speeding up. In Houston, the U.S. oil capital, shale executives are trying out different superlatives to describe what's coming.

"Tsunami," they call it. A "flooding of biblical proportions" and "onslaught of supply" are phrases that get tossed around. It's best to take the hyperbolic industry talk with a pinch of salt, but certainly the American oil industry, particularly in the Permian, has raised a buzz loud enough to keep OPEC awake.

"You've got an awful lot of production that can come in very economically," said Patricia Yarrington, Chevron's chief financial officer. "If you think back four or five years ago, when we didn't really understand what shale could do, the marginal barrel was priced much higher than what we think the marginal barrel is priced today."

https://www.arkansasonline.com/news/201 ... -20181125/

We have no need for Saudi Arabia. Other countries sure as hell do, but we don't. We continue to find ways to make a profit with lower and lower oil prices.

I can't see Boeing, General Dynamics and Lockheed-Martin, amongst others, sharing that point of view.

Many others to be precise!

http://the-saudi.net/business-center/links-usa.htm

https://www.cbsnews.com/news/corporate- ... di-arabia/

https://www.reuters.com/article/us-saud ... SKCN18G0JY

[Guest]

OPEC's bad dream only deepens next year, when Permian producers expect to iron out distribution snags that will add three pipelines and as much as 2 million barrels of oil a day.

"The Permian will continue to grow, and OPEC needs to learn to live with it," said Mike Loya, the top executive in the Americas for Vitol Group, the world's largest independent oil-trading house.

The U.S. energy surge presents OPEC with one of the biggest challenges of its 60-year history. If Saudi Arabia and its allies cut production when they gather Dec. 6 in Vienna, higher prices would allow shale to steal market share. But because the Saudis need higher crude prices to make more money than U.S. producers, OPEC can't afford to let prices fall.

Even so, Saudi Arabia's output swelled to a record this month, according to industry executives. That means the three biggest producers -- the U.S., Russia and Saudi Arabia -- are pumping at or near record levels.

A similar scenario unfurled in 2016, when Saudi output rocketed just before OPEC agreed to cuts. This time the cartel's 15 members, and allies including Russia, Mexico and Kazakhstan, will discuss the possibility of their second retreat in three years from booming American production.

OPEC helped create the monster that haunts its sleep. After it flooded the market in 2014, oil prices crashed, forcing surviving U.S. shale producers to get leaner so they could thrive even with lower oil prices. As prices recovered, so did drilling.

Now growth is speeding up. In Houston, the U.S. oil capital, shale executives are trying out different superlatives to describe what's coming.

"Tsunami," they call it. A "flooding of biblical proportions" and "onslaught of supply" are phrases that get tossed around. It's best to take the hyperbolic industry talk with a pinch of salt, but certainly the American oil industry, particularly in the Permian, has raised a buzz loud enough to keep OPEC awake.

"You've got an awful lot of production that can come in very economically," said Patricia Yarrington, Chevron's chief financial officer. "If you think back four or five years ago, when we didn't really understand what shale could do, the marginal barrel was priced much higher than what we think the marginal barrel is priced today."

https://www.arkansasonline.com/news/201 ... -20181125/

We have no need for Saudi Arabia. Other countries sure as hell do, but we don't. We continue to find ways to make a profit with lower and lower oil prices.

The world would be a better place if countries did not have to rely on oil from the Middle East

[Maddog]

OPEC's bad dream only deepens next year, when Permian producers expect to iron out distribution snags that will add three pipelines and as much as 2 million barrels of oil a day.

"The Permian will continue to grow, and OPEC needs to learn to live with it," said Mike Loya, the top executive in the Americas for Vitol Group, the world's largest independent oil-trading house.

The U.S. energy surge presents OPEC with one of the biggest challenges of its 60-year history. If Saudi Arabia and its allies cut production when they gather Dec. 6 in Vienna, higher prices would allow shale to steal market share. But because the Saudis need higher crude prices to make more money than U.S. producers, OPEC can't afford to let prices fall.

Even so, Saudi Arabia's output swelled to a record this month, according to industry executives. That means the three biggest producers -- the U.S., Russia and Saudi Arabia -- are pumping at or near record levels.

A similar scenario unfurled in 2016, when Saudi output rocketed just before OPEC agreed to cuts. This time the cartel's 15 members, and allies including Russia, Mexico and Kazakhstan, will discuss the possibility of their second retreat in three years from booming American production.

OPEC helped create the monster that haunts its sleep. After it flooded the market in 2014, oil prices crashed, forcing surviving U.S. shale producers to get leaner so they could thrive even with lower oil prices. As prices recovered, so did drilling.

Now growth is speeding up. In Houston, the U.S. oil capital, shale executives are trying out different superlatives to describe what's coming.

"Tsunami," they call it. A "flooding of biblical proportions" and "onslaught of supply" are phrases that get tossed around. It's best to take the hyperbolic industry talk with a pinch of salt, but certainly the American oil industry, particularly in the Permian, has raised a buzz loud enough to keep OPEC awake.

"You've got an awful lot of production that can come in very economically," said Patricia Yarrington, Chevron's chief financial officer. "If you think back four or five years ago, when we didn't really understand what shale could do, the marginal barrel was priced much higher than what we think the marginal barrel is priced today."

https://www.arkansasonline.com/news/201 ... -20181125/

We have no need for Saudi Arabia. Other countries sure as hell do, but we don't. We continue to find ways to make a profit with lower and lower oil prices.

I can't see Boeing, General Dynamics and Lockheed-Martin, amongst others, sharing that point of view.

Many others to be precise!

http://the-saudi.net/business-center/links-usa.htm

https://www.cbsnews.com/news/corporate- ... di-arabia/

https://www.reuters.com/article/us-saud ... SKCN18G0JY

I don't think a complete embargo is necessary. Just cancel a few military contracts until they get the message.

The carrot isn't working. A little smack with the stick might.

[Guest]

For a long time the US in general and the State of Texas in particular were in the forefront of renewal energy.

Those outside of Texas may find it hard to believe but Texas actually leads the US in wind powered generation, and that's ignoring the 23.1 Btu produced from biomass and that over 300 thousand homes in Texas are solely powered by solar energy. Despite Trump's efforts to make the business environment even more hostile to renewable energy Texas, and I feel comfortable calling Texas a very conservative state, is turning to renewable resources more and more.

Even without oil the USA does not need Saudi Arabia. So why is Trump supporting the Saudis against his own GOP controlled Senate - there's something rotten in the White House.

[Maddog]

For a long time the US in general and the State of Texas in particular were in the forefront of renewal energy.

Those outside of Texas may find it hard to believe but Texas actually leads the US in wind powered generation, and that's ignoring the 23.1 Btu produced from biomass and that over 300 thousand homes in Texas are solely powered by solar energy. Despite Trump's efforts to make the business environment even more hostile to renewable energy Texas, and I feel comfortable calling Texas a very conservative state, is turning to renewable resources more and more.

Even without oil the USA does not need Saudi Arabia. So why is Trump supporting the Saudis against his own GOP controlled Senate - there's something rotten in the White House.

Because of deregulation, we have like 20 sources for electric service. At least one uses all renewable sources. Might cost you a few extra bucks, but if it's what you want to spend your money on, you can.