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?

[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?

 

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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.