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December 24, 2018 · 1 min read

US shale’s debt hamster wheel drives prices down

Tom KirkmanIndependent Project Manager

Markets seem to dislike uncertainty and overproduction.

Hey U.S. Shale Oil, what the heck are you doing? Maybe time to slow down a bit, running frantically on the neverending hamster wheel of shale oil debt. Running faster on the debt hamster wheel just drives WTI prices down further, and sinks you deeper into even more debt.

Instead of drilling yourselves into oblivion and further debt on another production and price roller coaster, perhaps this time you can try throttling back production **before** you crash everything?

Have you learned nothing from the last crash? Apparently not.

Read the linked article on community.oilprice.com ↗

FROM THE THREAD

Tom's notes 2

  1. Tom Kirkman

    "Oil prices dipped on Monday ahead of the Christmas holiday break, adding to last week’s steep losses on concerns about a global oversupply.

    ... Adding to concerns about oversupply, the number of active U.S. rigs for drilling oil rose by 10 in the week ended Dec. 21 to 883, according to a report by General Electric Co’s (GE.N) Baker Hughes energy services firm.

    The United States has emerged as the world’s biggest crude producer, pumping 11.6 million bpd of crude, more than both Saudi Arabia and Russia.

    https://www.reuters.com/article/us-global-oil/oil-eases-on-oversupply-concerns-ahead-of-holiday-idUSKCN1ON01P

  2. Tom Kirkmanreplying to Robert Young

    thanks, and same to you, Merry Christmas and Happy New Year.

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