Economy 52,848 Posted August 13, 2015 Share Posted August 13, 2015 http://finance.yahoo.com/news/saudi-arabia-vs-us-shale-175405855.html The Saudis have refered to the oil war between its market share and the shale producers in the US a case of "survival of the fittest" The slowdown in shale oil drilling is happening much slower than Saudi Arabia anticipated because companies have become more efficient and lowered costs allowing them to survive for now... Still despite new technology and efficiency gains, most shale companies wont survive these prices indefinitely. However neither will Saudi Arabia that is eating up its reserve wealth fund at an alarming rate and borrowing money as well to keep running its Government. Link to post Share on other sites More sharing options...
Prometheus 1,494 Posted August 13, 2015 Share Posted August 13, 2015 As long as I get cheap gas i don currrr Link to post Share on other sites More sharing options...
Economy 52,848 Posted August 13, 2015 Author Share Posted August 13, 2015 As long as I get cheap gas i don currrrwell, if the saudis finally managed to kill high cost producers (and not just US shale producers) prices would go back up!!!! Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted August 14, 2015 Share Posted August 14, 2015 The new startups and smaller companies might fold, sure, but Exxon, BP, Shell will pick up the slack. Saudi's are the biggest , but the other combined producers, plus IrAn and Vemezuela make them less important. like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Economy 52,848 Posted August 14, 2015 Author Share Posted August 14, 2015 The new startups and smaller companies might fold, sure, but Exxon, BP, Shell will pick up the slack. Saudi's are the biggest , but the other combined producers, plus IrAn and Vemezuela make them less important. i dont think this is a matter of whos important or not... the the war isnt over importance, its about market share and who can survive longest... the large companies certainly wont go bankrupt anytime soon (Canadas large oil sands companies wont either... Expensive North Sea Drilling from Norway and UK also has large companies that can withstand low prices for a long time However if price stay this low for very long, evewn if they survive, their production will still fall given enough time and for the Saudis thats a win because they manage to steal market share even if prices dont rebound right away Its a question of how long they can last tho. Thier budget deficit this year was estimated at $130 Billion... their population is less than 1/10 of the US so a deficit of $130 Billion would be the equivalent of the US running a $1.3 Trillion deficit Link to post Share on other sites More sharing options...
sweet spot 3,241 Posted August 14, 2015 Share Posted August 14, 2015 Survival of the fittest, rich against the poor Sorry I couldn't Link to post Share on other sites More sharing options...
Economy 52,848 Posted August 14, 2015 Author Share Posted August 14, 2015 Survival of the fittest, rich against the poor Sorry I couldn't i this case its rich against rich only its rich companies against a rich government... a weird battle, wonder who will win Link to post Share on other sites More sharing options...
sweet spot 3,241 Posted August 14, 2015 Share Posted August 14, 2015 i this case its rich against rich only its rich companies against a rich government... a weird battle, wonder who will win sis it's lyrics from Marina And The Diamonds. Savages Link to post Share on other sites More sharing options...
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