Saudi Arabia announced an oil production cut recently.
But I expect Russia is selling all the oil even though it is at reduced prices to fund their war.
Now Exxon announced this breakthrough:
The U.S. shale revolution dramatically reshaped the world energy markets. The shale boom was one of the most impressive growth stories, from take off in 2008 to the Permian stealing the mantle from Saudi Arabia’s Ghawar as the world’s highest producing oilfield in a little over a decade. Overall, Reuters has estimated that, “U.S. petroleum production is at least 10-11 million bpd higher than it would have been without horizontal drilling and hydraulic fracturing.’ ’
Unfortunately, the shale patch has lately been struggling to ramp up production due to a litany of challenges including pressure from investors to boost returns, limited equipment and workers as well as a lack of capital.
But shale giant ExxonMobil Corp. (NYSE:XOM) is now betting that shale producers can double crude output from their existing wells by employing novel fracking technologies.
the U.S. Shale Patch won’t have to wait for Exxon to perfect its new fracking technologies. There’s already a proven technology for oil producers to return to existing wells and give them a second, high-pressure blast to increase output for a fraction of the cost of finishing a new well: shale well refracturing.
Before fracking took off in oil fields US oil production was down to about five million barrels per day. In the 15 years since it is conceivable that this conventional oil production would have dropped to two million.
For example, from last year:
“The country produced approximately 11,526.9 thousand barrels per day (mbd) of crude oil in February 2022, a 19% gain over the May 2020 production of 9,711.1mbd. Over the same period, US shale oil production has risen by 25% to 8,492.7mbd in February 2022.”
I remember. when North Sea oil production got underway, reading an article speculating what the UK would do with the windfall. The betting was they would squander it.
The Saudis are also squandering it. Google results. SA may end up with more debt than wealth in the next twenty years. The country could be insolvent at some point.
250.1 billion USD
Gross debt in Saudi Arabia
The government debt in the period from 1991 to 2021 was between 11.8 billion and 250.1 billion USD. The highest level of the last years at 250 billion US Dollar was reached in 2021. Based on the number of inhabitants, this is a debt of 6,958 USD per person.
What is the Saudi sovereign fund? Known as the Public Investment Fund, or P.I.F., it is an investment pool that manages more than $700 billion in Saudi government money.3 days ago
How much of that frack produced oil and gas is on government owned land? What does the government make off oil and gas production? Some time ago, I commented about how Michigan gives away ground water, in huge quantities, to for-profit bottling companies, and wondered with amusement if Texas gives away oil and gas the same way.
The Inflation Reduction Act which went untouched in the debt ceiling talks is centered in larger part on alternative energy. The agreement on the ceiling was in larger part centered on building out parts of a national grid.
I am not sure you are paying attention when it is not propaganda.