Oilfield Workers To Go Back To Work Soon! Saudi Arabia May Go Bankrupt…
It won’t be long now, until the U.S. Shale Oil Industry will bankrupt Saudi Arabia, and claim victory against OPEC. The war isn’t over yet, but America has already won, it’s just a waiting game now.
On Friday, December 18th 2015, President Barack Obama officially signed off on ending the 40 year ban on the export of crude oil. President Obama basically signed the death certificate of OPEC. By passing this new law, the US Shale Oil Industry will crush OPEC in the long-term.
For years now Saudi Arabia has been a major powerhouse in the oil and gas industry. When you think Saudi Arabia, you think of oil. Most people assume OPEC is the one calling the shots and setting the oil prices, it’s not, it’s Saudi Arabia and it’s been them this whole time. Why do you think the Bush Administration was in bed with them?
For the last few decades Saudi Arabia has printed money faster than they can pump oil, and they pump a tremendous amount of oil. When the markets swung up and down, it was due to the Saudi’s actions. Saudi Arabia has been the muscle in the oil industry for the longest time, until US operators cracked the shale oil code.
At the current time, oil accounts for 80% of the Saudi government’s budget revenues, 90% of its export earnings, and 45% of its overall GDP. So far, it’s estimated the oil crash has cost OPEC countries $500 billion a year. Saudi’s crude oil exports rose to 7.364 million barrels per day, from 7.111 million in September.
It won’t be long before Saudi Arabia shoots themselves in the foot and goes broke due to their refusal to decrease oil production. They may have started the oil war, but the US Shale Oil Industry is going to finish it. Saudi has gone from a budget surplus of 12% of GDP in 2012 to a projected deficit of 21.6% or roughly US$150 Billion in 2015. They can only keep their heads above water for so long at this pace. Saudi needs crude at US $106 a barrel to balance its budget, way higher than a once needed $69 a barrel back in 2010.
What the US operators need to do to bury OPEC 6 feet under the ground is ramp up production to further flood the market and drive the price of oil down. This could be done very quickly. And it just may happen now that we’ve all of a sudden discovered that there is a huge market for the oil we have here. Before the ban was lifted, everybody said it would do us no good because there was simply no market for the light sweet crude. Well, game changing news was announced just the other day about a huge deal being reached to start exporting oil right away. Texas is going to begin exporting mass amounts of oil within the next couple weeks. This is the news we’ve all been wondering about. Will they buy if we open up exports? Yes is the answer, and it took a matter of days for the first deal to be done. In our next post we will discuss the details of the coming exports.
If the call came in to open up the spigot now, Bakken oil production could be boosted up to 2 million barrels a day within a matter of hours, all they have to do is send out the lease operators (pumpers) and opening up the wells bringing production up over an extra million barrels a day. The production numbers we are looking at in North Dakota are holding steady with a low amount of rigs. If one were to bring 150 more rigs out, it could get mighty interesting. When we talk about upping the rig counts in North Dakota, one should not be surprised to see some new, major oilfield companies coming to the state and staking their claim in the Bakken.
Since the price of oil started sliding down, most of the new wells are either being capped, or choked way back. Why would an oil company pump the wells out for a huge loss to store the oil somewhere else? Where’s the cheapest place to store oil you might wonder? Right where it is in the ground. The oil isn’t going anywhere, it can sit and wait longer than the Saudi’s can. The game is Chess, and OPEC has just been put in check mate.
When you read the mainstr
It won’t be long now, until the U.S. Shale Oil Industry will bankrupt Saudi Arabia, and claim victory against OPEC. The war isn’t over yet, but America has already won, it’s just a waiting game now.
On Friday, December 18th 2015, President Barack Obama officially signed off on ending the 40 year ban on the export of crude oil. President Obama basically signed the death certificate of OPEC. By passing this new law, the US Shale Oil Industry will crush OPEC in the long-term.
For years now Saudi Arabia has been a major powerhouse in the oil and gas industry. When you think Saudi Arabia, you think of oil. Most people assume OPEC is the one calling the shots and setting the oil prices, it’s not, it’s Saudi Arabia and it’s been them this whole time. Why do you think the Bush Administration was in bed with them?
For the last few decades Saudi Arabia has printed money faster than they can pump oil, and they pump a tremendous amount of oil. When the markets swung up and down, it was due to the Saudi’s actions. Saudi Arabia has been the muscle in the oil industry for the longest time, until US operators cracked the shale oil code.
At the current time, oil accounts for 80% of the Saudi government’s budget revenues, 90% of its export earnings, and 45% of its overall GDP. So far, it’s estimated the oil crash has cost OPEC countries $500 billion a year. Saudi’s crude oil exports rose to 7.364 million barrels per day, from 7.111 million in September.
It won’t be long before Saudi Arabia shoots themselves in the foot and goes broke due to their refusal to decrease oil production. They may have started the oil war, but the US Shale Oil Industry is going to finish it. Saudi has gone from a budget surplus of 12% of GDP in 2012 to a projected deficit of 21.6% or roughly US$150 Billion in 2015. They can only keep their heads above water for so long at this pace. Saudi needs crude at US $106 a barrel to balance its budget, way higher than a once needed $69 a barrel back in 2010.
What the US operators need to do to bury OPEC 6 feet under the ground is ramp up production to further flood the market and drive the price of oil down. This could be done very quickly. And it just may happen now that we’ve all of a sudden discovered that there is a huge market for the oil we have here. Before the ban was lifted, everybody said it would do us no good because there was simply no market for the light sweet crude. Well, game changing news was announced just the other day about a huge deal being reached to start exporting oil right away. Texas is going to begin exporting mass amounts of oil within the next couple weeks. This is the news we’ve all been wondering about. Will they buy if we open up exports? Yes is the answer, and it took a matter of days for the first deal to be done. In our next post we will discuss the details of the coming exports.
If the call came in to open up the spigot now, Bakken oil production could be boosted up to 2 million barrels a day within a matter of hours, all they have to do is send out the lease operators (pumpers) and opening up the wells bringing production up over an extra million barrels a day. The production numbers we are looking at in North Dakota are holding steady with a low amount of rigs. If one were to bring 150 more rigs out, it could get mighty interesting. When we talk about upping the rig counts in North Dakota, one should not be surprised to see some new, major oilfield companies coming to the state and staking their claim in the Bakken.
Since the price of oil started sliding down, most of the new wells are either being capped, or choked way back. Why would an oil company pump the wells out for a huge loss to store the oil somewhere else? Where’s the cheapest place to store oil you might wonder? Right where it is in the ground. The oil isn’t going anywhere, it can sit and wait longer than the Saudi’s can. The game is Chess, and OPEC has just been put in check mate.
When you read the mainstr
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