Monday, December 5, 2016
US Already Ready to Take Advantage of OPEC Cut
Surely. SURELY the Saudis knew this would happen, right? RIGHT???
"We should also be cautious to read too much into the timing of these latest additions to the national rig count, as companies have not yet had time to respond to the sharp uptick in prices we saw on Wednesday as a result of OPEC’s (and Russia’s) decision to cut production. But while we can’t say that this is a direct effect of those cuts, we can reasonably expect the American shale industry to quickly respond to $50+ per barrel crude. Firms have been actively developing new processes and technologies that will allow them to become profitable at these levels in more plays than ever before, and thanks to the relatively small scale of shale well drilling, they’ll be able to adjust to a more bullish market with much more agility than more conventional oil producers."