To bankrupt the US shale, Russia will have to be patient

5

It has long been no secret that the goal of Russia’s refusal to further reduce oil production is to displace expensive American shale oil from the market. However, experts' opinions about how this step can affect shale production in the United States were divided.

Forbes cites the opinion of Manish Raji, the chief financial manager of Velandera Energy, who believes that refusing to reduce the production of “black gold”, Russia will supplant American companies. However, the end result may differ from what Moscow hopes for.



He cited Saudi Arabia as an example. In 2014, she used a similar strategy, but failed, as the United States has a bankruptcy law, using which American companies reorganized and returned to the market with less luggage.

Forbes draws attention to the fact that, taught by bitter experience, American oil producers have already insured their activities for 2020 and longer.

Therefore, if Moscow’s plan really is to kill the American shale industry, then Novak and other leaders must be prepared to withstand a long and painful period

- summed up the publication.
  • https://www.piqsels.com/
Our news channels

Subscribe and stay up to date with the latest news and the most important events of the day.

VK Zen Telegram
5 comments
Information
Dear reader, to leave comments on the publication, you must sign in.
  1. Sergey Latyshev
    Sergey Latyshev
    +1
    10 March 2020 09: 30
    But there is a document or statement of ours that

    Russia’s refusal to further reduce oil production is to displace expensive American shale oil from the market.

    ??? And then again, they refer to some small unknown Amerov experts ...
  2. Bulanov
    Bulanov
    0
    10 March 2020 10: 06
    For Russia, in this case, the most correct would be the purchase of foreign shares of Russian companies at low prices during the crisis and the development of their own production. Now we can understand where the Russian economy sank, and begin the construction of factories for the production of these products. At the same time, domestic energy consumption will increase and Russian industry will flourish. Only workers need to pay a decent salary, and not 1,5 - 2 minimum wages.
  3. Oleg Rambover
    Oleg Rambover
    +1
    10 March 2020 10: 17
    And again, Russian citizens will pay for this multi-way.
  4. Krasstar
    Krasstar
    +2
    10 March 2020 10: 39
    Russia pays for the bankruptcy of American shale oil companies with cheap energy and impoverished people - Russia no longer has the economic leverage to influence the world market. And the Americans have such an inexhaustible printing press - how many companies want to go bankrupt, they will print as many new companies, and we will buy it for 100500 rubles.
  5. Arkharov
    Arkharov
    -2
    11 March 2020 10: 56
    Believe in these tales? And if you yourself go bankrupt? So far, no particular success has been seen.