US shale had already been in serious decline as West Texas wells aged and the gush of the shale revolution.
Now, with the oil price crash, the Permian Basin has been burdened with bankruptcies and tens of thousands of fired and furloughed employees.
So when we are able to return to business as usual, there will likely be a shortage of spare capacity.
Low supply, high demand.
That’s how these things work. Keep an eye out for $100 barrels coming down the pike.
Opinion: oil and gas (as a source of energy) is in a death spiral. How long it will take, I don’t know. But the downturns have become increasingly frequent and, most importantly, the lows are getting lower but the highs are not getting higher or even reaching their previous high. We went from $100/bbl to $70/bbl being the goal that wasn’t met to $50/bbl is the new normal, etc..
This cycle, like the ones over the past 10 years will see attractive prices for consumers drive up demand (for a time) but the higher prices that follow will make EVs and renewables more attractive and provide them a larger share of the market. With each subsequent (less boom - more bust) cycle oil and gas (again as energy) will approach a point where it is no longer competitive with other sources (which will continue to become cheaper, more abundant, more efficient, etc.).
The oil and gas sector will never employ as many people as it did prior to this downturn.
Who knows, WWIII is already here.
WWIII prep started. All countries topping up their oil reserves. Chances of oil going north very rapidly
Surely, you are taking tequila shots through your nose. Don’t get so high so easily.
When a resource-bound industry is producing at capacity, the price becomes highly sensitive to demand and unstable. Oil is worse because supply and demand are also inelastic. Expect price swings to become ever more violent. It's really a shame we burn these beautiful carbon chains for heat. We will eventually discover that we need oil much more for the synthetics that we use in everything.
what the f— are you smoking?
U need a d–g test!
We know this will happen but the question is when...
It may take a while before it bounces back.
Many of us do not have resources to ride it out and will forever leave the industry.
Oilfield was good to me until it was not.
Yeah, I have a 15” pecker and will be the next Johnny Wad Holmes. No more oilfield trash for me🤣🤣🤣
Yeah okay. Keep dreaming of that.