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

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"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?