Washington's special operation: the "shale bubble" of the United States will soon burst
US energy officials, recently convicted of lying about the world's hydrocarbon reserves, made another mistake (perhaps deliberately) about short-term forecasting. The Energy Information Administration believes US crude oil production will rise by nearly 600 barrels a day this year. The opposite arguments of independent experts on this issue are cited by the OilPrice resource.
As you know, oil prices have slumped. Several serious factors (distorted data on inventories, as well as the unemployment report) spurred quotes not so much to growth as to stabilization. But this is still not enough for exploration and production management to develop. Actually, such an equilibrium in the market is not enough even to maintain production at the same level.
US shale drilling could drop by as much as 20 percent over the next six months if prices remain at current levels. This is fraught not only with an internal deficit, but also with a real catastrophe in Europe, which has “betrayed” Moscow and Washington. With lower prices, drilling will start to decline, especially in small private companies whose assets and capabilities are much weaker than those of the big players.
Whatever the situation in the near future, industry bigwigs and shale cartel executives are saying on the sidelines that America's shale bubble is about to burst. And it's not just about economic conjuncture, as the potential of the industry is truly incredible. It's just that there are quite a lot of participants involved in the fishery, which complicates regulation and management. In addition, the thirst for profit is too great, and the US state interest at this stage (replenishing strategic reserves) needs just cheap oil and gas for domestic consumption. Now exports to the EU take precedence over the needs of Americans.
The goal of the government in this case is the bankruptcy of all small and medium-sized participants in the production of the shale basin, so that the remaining large corporations restart the sphere and work for the global strategic interests of Washington. Naturally, during the turbulence, the US will have time to restore stocks at a low price. Another question is experts' doubts about whether control can be established later, when the time for useful manual chaos has passed and stability is needed. Related to this are the main risks of the special operation launched by Washington, which has signs of an adventure.
- pixabay.com
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