Episode 11 - Prospects for profit for shale oil companies | Russia-Saudi oil cooperation
OPEC a Shale-Khalid al Falih commented at recent OPEC meeting that global demand will outpace shale production so there’s plenty of room in the market for shale oil-Combination of falling production from some formerly big players like Venezuela and growing demand in India and China and lack of investment in new large scale projects-Will higher oil prices keep the money flowing to shale oil companies?Prospects for profit for shale oil companies-Will companies look to diversify into downstream? Yes, but government regulation is a factor in refining-Could US energy companies look to establish downstream operations in Mexico as they liberalize their energy industry?-Definite opportunity though NAFTA is an issue-To what extent will service costs positively or negatively impact shale oil companies’ bottom lines? Service costs are up but companies are being pickier in how many people they hire-Can they scale back up without as much as waste? -Impact of hedging on shale oil companies. Could some miss the boat on the highest prices?-Oversupply of light oil could push prices down for shale companies in particularRussia-Saudi oil cooperation-OPEC—non-OPEC production cut progress good though Iraq and Kazakhstan called out for overproduction-Will the production cuts continue through 2018? Al Falih indicates they will but expectation is that exit will be discussed in June-Al-Falih and Novak’s relationship as a sign of how well the production deal is working. -Russian economy – how dependent is it on European natural gas market and/or Chinese market? Could European diversification to American or other sources of natural gas spell trouble for the Russian economy?Article: Are Cryptocurrencies More Currency Or Commodity?https://www.forbes.com/sites/ellenrwald/2018/01/18/after-the-bitcoin-crash-are-cryptocurrencies-more-currency-or-commodity/#7d43e6884e9c
