RE:RE:RE:Will we get back to $50.37 - Year High?Experienced wrote: Oilandgasmick......Good points and thanks for the technical explanation - much appreciated.
I might add that the issue you talk about in terms of the sweet spots is also made worse by a tendency of producers to high grade their properties especially when oil prices are low like they have been in the recent past and especially during the COVID panic.
In terms of the environmental pushback you talk about, it is quite interesting. There was considerable pushback a few years ago in terms of fracking materials contaminating the water supply in the NE US and the increase in seismic activity due to fracking in places like Oklahoma. Somehow that pushback seems to have disipated while the concerns regarding heavy oil and oil sands hasn't really dimished. I suspect that the reason for this is that the frackers in the US were able to buy off the politicans whereas since the heavy oil producers are in Canada, they haven't the same power to influence politicans and the media.
From a broader perspective, this raises significant concerns regarding overall economic activity and the banking sector. I have mentioned here before, the shale producers have a significant amount of subprime loans with the banks which actually dwarf the subprime housing loans that precipitated the Great Recession of 2008/09. When one combines that possibility with the fact that Governments around the world are much more in debt than they were back then, the potential for an even larger stock market crash looms very large.
I highly recommend that people keep this in mind as time goes on, paricularly if we see a significant drop off in oil production from the US shale producers. In this scenario we could see oil prices spike for a short period of time as this production falls and for those invested in oils that would a great time to take profits and "get outta Dodge".
Oilandgasmick......Good points and thanks for the technical explanation - much appreciated. Once again, you showed how easy to fool someone without science background, and how lazy you didn't even do simple checking before swallowing the 'technical explanation'. I bet you also bought the science of covid vaccination sung by our politicians, and bought and paid for media.
If you just do a simple google 'shale oil frack orientation', the answer will pop up in front of your screen.