"OPEC" is facing a dilemma

by **Rocky** Mon 13 Mar 2017, 3:17 am

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Post n°1

"OPEC" is facing a dilemma

by Rocky Mon 13 Mar 2017, 3:17 am

"OPEC" is facing a dilemma

12/03/2017 04:57 | Number of Views: 189 font size: Decrease font Enlarge font
"OPEC" is facing a dilemma
Direction Press / Agencies
"Week walk" Energy Conference revealed substantial inconsistencies marred an attempt to "OPEC" to restore balance to the oil market, the oil shale without control or give up market share to competitors.

Initiated the oil industry conference in Houston, its high oil prices, and progress towards reducing global stockpiles, and optimism about the prospect of shale oil producers.

But it would conclude the biggest daily decline in prices in more than a year, and fears that stocks do not go down as planned, and warn that the shale oil producers may cause a new drop in prices if they increased production faster than it should.

Members of the Organization "OPEC" revealed an almost complete commitment to production cuts announced last November, but the performance remains uneven within the organization.

Want "OPEC" organization to raise prices at the same time protect its market share. The organization is trying to find the perfect price: price high enough to enhance revenue, but not as high a degree spark of shale oil production again.

The problem is that this ideal range was very narrow, and there is absolutely in the form satisfactory to all parties concerned, which is trying to "OPEC" mobilized within a collaborative framework.

Most estimates suggest that the breakeven price of shale oil, which can continue production has currently located within the limits of 50 or 55 dollars a barrel. It is expected to price in the range of 60 or 65 dollars to produce a significant increase in shale oil production.

The process of restoring balance in the market will take longer than expected, and Saudi officials in Houston, acknowledged last week. Vorkam stocks do not fall as fast as anticipated, "OPEC".

And facing the "OPEC" traditional dilemma: either to focus on raising prices, or to protect market share, but not keep both.

And it will shed light on this dilemma during the next two months when they decide to "OPEC" Do you work extended production cuts after June.

http://aletejahtv.org/permalink/154823.html

by **wciappetta** Mon 13 Mar 2017, 5:59 am

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Post n°2

Re: "OPEC" is facing a dilemma

by wciappetta Mon 13 Mar 2017, 5:59 am

Most estimates suggest that the breakeven price of shale oil, which can continue production has currently located within the limits of 50 or 55 dollars a barrel.

Not true, Two weeks ago it was reported on Fox Business Channel that shale oil production is now profitable at $30.00 a barrel which is why OPEC has this dilemma. The cartel is in shambles and production is going up thus oil prices will fall.

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by duck2000 Mon 13 Mar 2017, 8:21 am

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Post n°3

Re: "OPEC" is facing a dilemma

by duck2000 Mon 13 Mar 2017, 8:21 am

[size=36]Leaner and meaner: US shale greater threat to OPEC after oil price war
Wednesday, 30 Nov 2016 | 3:09 AM ETReuters
[/size]

"OPEC" is facing a dilemma 103407302-GettyImages-174288959.530x298

"OPEC" is facing a dilemma 103407302-GettyImages-174288959.530x298

Getty Images
Workers with Raven Drilling line up pipe while drilling for oil in the Bakken shale formation outside Watford City, North Dakota.
In a corner of the prolific Bakken shale play in North Dakota, oil companies can now pump crude at a price almost as low as that enjoyed by OPEC giants Iran and Iraq.
Until a few years ago it was unprofitable to produce oil from shale in the United States. The steep slide in costs could encourage more U.S. shale output if OPEC members cut supplies, undermining the producer group's ability to boost prices. OPEC ministers meet Wednesday to weigh output cuts to end a two-year glut that has pressured global oil prices.
In shale fields from Texas to North Dakota, production costs have roughly halved since 2014, when Saudi Arabia signaled an output free-for-all in an attempt to drive higher-cost shale producers out of the market.

Rather than killing the U.S. shale industry, the ensuing two-year price war made shale a stronger rival, even in the current low-price environment.
In Dunn County, North Dakota, there are around 2,000 square miles where the cost to produce Bakken shale is $15 a barrel and falling, according to Lynn Helms, head of the state's Department of Mineral Resources.
"The success in Dunn County has been fantastic," said Ron Ness, president of the North Dakota Petroleum Council.
Dunn County's cost is about the same as Iran's, and a little higher than Iraq's. Dunn County produces about 200,000 barrels of oil a day, about a fifth of daily production in the state.
It is North Dakota's sweet spot because it boasts the lowest costs in the state, yet improved technology and drilling techniques have boosted efficiency for the whole state and the entire U.S. oil industry.
The breakeven cost per barrel, on average, to produce Bakken shale at the wellhead has fallen to $29.44 in 2016 from $59.03 in 2014, according to consultancy Rystad Energy. It added that in terms of wellhead prices, Bakken is the most competitive of major U.S. shale plays.
Wood Mackenzie said technology advances should further reduce breakeven points.

http://www.cnbc.com/2016/11/30/leaner-and-meaner-us-shale-greater-threat-to-opec-after-oil-price-war.html