U.S. Frackers and Saudi Officials Tell Trump They Won’t Drill More

[placeholder]

"Trump for months has encouraged the U.S. shale industry to “drill, baby drill,” but another American oil boom isn’t in the cards soon, no matter how many regulations are rolled back, according to oil executives. After many producers overdrilled themselves into bankruptcy during the shale boom’s heyday, the industry is now focused on keeping costs down and returning cash to investors.

The president’s advisers concede that U.S. frackers won’t pump much more, according to people familiar with the matter."

https://www.wsj.com/business/energy-oil/trump-oil-drilling-saudi-arabia-71c095ff

 

Trump wants to bring oil prices down to $45 per barrel. Yet, according to this, developing new fracking sites costs about$50 per barrel.

For $50 per barrel, oil and gas companies are less likely to explore and drill for new oil accessible through fracking, but existing operations may still be cash-flow positive. Once the expensive exploration and initial drilling are complete, existing wells can continue to operate and stay cash-flow positive even as prices fall below $50 per barrel.

\https://www.investopedia.com/articles/investing/072215/can-fracking-survive-60-barrel.asp#:~:text=Fracking is expensive%2C but still,low as %2430 per barrel.

 

Saudi Arabia is already selling oil below the price it needs to pay for its spending. That price is about $90 per barrel.

[candide]

Of course, drill baby drill is just a slogan for the gullible! 😆

[Will B Good]

U.S. Frackers.....is that a typo?

[Jim Blue]

Thought that phrase was first  said  by Sarah Pailin . .what happened to her?

[rabas]

15 hours ago, placeholder said:

"Trump for months has encouraged the U.S. shale industry to “drill, baby drill,” but another American oil boom isn’t in the cards soon, no matter how many regulations are rolled back, according to oil executives. After many producers overdrilled themselves into bankruptcy during the shale boom’s heyday, the industry is now focused on keeping costs down and returning cash to investors.

The president’s advisers concede that U.S. frackers won’t pump much more, according to people familiar with the matter."

https://www.wsj.com/business/energy-oil/trump-oil-drilling-saudi-arabia-71c095ff

 

Trump wants to bring oil prices down to $45 per barrel. Yet, according to this, developing new fracking sites costs about$50 per barrel.

For $50 per barrel, oil and gas companies are less likely to explore and drill for new oil accessible through fracking, but existing operations may still be cash-flow positive. Once the expensive exploration and initial drilling are complete, existing wells can continue to operate and stay cash-flow positive even as prices fall below $50 per barrel.

\https://www.investopedia.com/articles/investing/072215/can-fracking-survive-60-barrel.asp#:~:text=Fracking is expensive%2C but still,low as %2430 per barrel.

 

Saudi Arabia is already selling oil below the price it needs to pay for its spending. That price is about $90 per barrel.

 

Your argument seems contorted, but your not linked links are broken, the first goes to a paywall, second just says site can't be reached. 

 

Rather than shadowbox soundbites let me just say the Saudi's often talk about and sometimes do lower oil prices. Most recently they threatened $50/barrel in October 2024. Lowering oil price has been discussed for quite some time as a means of further squeezing Putin's horrific war machine. Have you gone full Putin?

 

[placeholder]

1 hour ago, rabas said:

 

Your argument seems contorted, but your not linked links are broken, the first goes to a paywall, second just says site can't be reached. 

 

Rather than shadowbox soundbites let me just say the Saudi's often talk about and sometimes do lower oil prices. Most recently they threatened $50/barrel in October 2024. Lowering oil price has been discussed for quite some time as a means of further squeezing Putin's horrific war machine. Have you gone full Putin?

 

Thanks for the heads up about the links. Here are corrected versions:

 

https://archive.ph/nzzjy

https://www.investopedia.com/articles/investing/072215/can-fracking-survive-60-barrel.asp#:~:text=Fracking is expensive%2C but still,low as %2430 per barrel.

 

As for the Saudi threats.. I'm not even going to bother to look at what you claimed. Not because I disbelieve you. I'm sure it's true. But were I to take a look at it, I'm sure the record would show that the Saudis were using that threat to bring other oil producers in line and to stop overproduction. Their threat was in the interest of keeping rates higher than they otherwise would be. Not in keep rates lower for the long term. Which is what Trump is pushing for.

[bannork]

More on why drill, baby, drill ain't happening, at least this year.

American producers aren’t looking now to boost supply, and likely won’t be enticed to “drill, baby drill” until prices reach an average $84 per barrel, which is close to 15 percent above current prices, according to the Kansas City Federal Reserve.

U.S. crude prices fell close to an additional 2 percent on Tuesday as U.S. tariffs on China took effect and China imposed a 10 percent tax on American crude oil.

But Trump is nevertheless looking to lower prices.

After a phone call last month with Saudi Crown Prince Mohammed bin Salman he said that he planned to ask him to lower oil prices. The president called on all OPEC countries to do the same in a recent speech at The World Economic Forum at Davos. Trump argued that it would put pressure on Russia to withdraw from Ukraine as its income from oil would sink amid the dropping prices, making the war too expensive.

But that’s not likely to happen, according to Business Insider, and wouldn’t please American producers who would also have to compete with lower prices. OPEC members have held back output in the past two years to increase market prices amid oil’s price slide, but is expected to gradually roll back production curbs.

Whatever OPEC does, analysts expect a major supply glut to weigh down prices through 2025, according to the Insider.

 

[candide]

8 hours ago, rabas said:

 

Your argument seems contorted, but your not linked links are broken, the first goes to a paywall, second just says site can't be reached. 

 

Rather than shadowbox soundbites let me just say the Saudi's often talk about and sometimes do lower oil prices. Most recently they threatened $50/barrel in October 2024. Lowering oil price has been discussed for quite some time as a means of further squeezing Putin's horrific war machine. Have you gone full Putin?

 

It's not the reason for the decision made by Saudi Arabia. You are confusing with Trump's recent attempt to get OPEC countries to increase their production in order to squeeze Russia.

 

Saudi Arabia wants to recover its market share (it's also a way to reply to some OPEC members freeriding by not respecting quotas).

 

[Ricardo]

Perhaps the USA, as the World's biggest oil-producer, should join OPEC if he wants to have more influence ?  

[rabas]

16 hours ago, candide said:

It's not the reason for the decision made by Saudi Arabia. You are confusing with Trump's recent attempt to get OPEC countries to increase their production in order to squeeze Russia.

 

Saudi Arabia wants to recover its market share (it's also a way to reply to some OPEC members freeriding by not respecting quotas).

 

I'm aware of both sides of the issue and that they are inextricably linked. Both sides have been discussed for a long time. To see how they are linked read here about the Saudi's October threats and Russian impact: 

 

https://www.politico.eu/article/vladimir-putin-war-economy-pain-saudi-arabia-sink-global-oil-prices-energy-russia-opec/ 

 

My only concern is stopping Putin, I'll leave politics to others. 

[placeholder]

15 minutes ago, rabas said:

 

I'm aware of both sides of the issue and that they are inextricably linked. Both sides have been discussed for a long time. To see how they are linked read here about the Saudi's October threats and Russian impact: 

 

https://www.politico.eu/article/vladimir-putin-war-economy-pain-saudi-arabia-sink-global-oil-prices-energy-russia-opec/ 

 

My only concern is stopping Putin, I'll leave politics to others. 

Deflecting much? The evidence you offered in the case of Saudi Arabia was obviously irrelevant. And what does it mean that both sides of the issue are inextricably linked?  Ii will say that it's nice that, unlike Trump, you wish Ukraine well.

[NanLaew]

On 2/5/2025 at 7:52 AM, rabas said:

 

Your argument seems contorted, but your not linked links are broken, the first goes to a paywall, second just says site can't be reached. 

 

Rather than shadowbox soundbites let me just say the Saudi's often talk about and sometimes do lower oil prices. Most recently they threatened $50/barrel in October 2024. Lowering oil price has been discussed for quite some time as a means of further squeezing Putin's horrific war machine. Have you gone full Putin?

 

 

More like @placeholder hasn't gone full Trump?