Wednesday, October 14, 2015

The US Shale Oil Industry Will Simply Vanish.......ANOTHER PESKY FACT!

The US Shale Oil Industry Will Simply Vanish


After many years of borrowed 
prosperity, tough times have finally come for the US shale industry. After all shale was a mirage from the start and anyone with a brain knew that!

Dramatic US oil production decline is inevitable and many shale companies if not most will 
face bankruptcy. Their assets will end up going to larger producers, reinforcing market concentration. US energy independence can only be saved by government intervention. US government will remove exports limitation and FED September rate hike suspension is related to the unsustainable debt levels US oil industry is keeping afloat.

But that is simply not enough to prevent a collapse of the US shale 
oil industry. From our research we learn that cost per barrel declined slightly but decreasing production cost is not enough to compensate for lower oil price. US oil production already declined 400K barrels per day from its April peak. We estimate another 2 to 3 Million barrels can be wiped out the coming year.

Without government intervention the "invisible hand" of the world oil market will simply bankrupt US shale companies and with it destroy the US shale oil industry. ANY INFORMED PERSON KNEW AND SAID THAT THIS WOULD BE THE CASE!


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