Posted 3/26/2020 10:55 (#8140170 - in reply to #8138946) Subject: RE: Price of oil reason
east central ND
Umm. Shale oil is not the cheapest, but.... the tech and infrastructure has come a long ways in the last 20 years.
They know exactly where the shale oil is and what it costs to get it to the refinery. Every drilled and fraced well is guaranteed production. No wildcat. If the price gets low enough, they stop. Oil in the ground does not go bad like a lot of other commodities. The crude oil and infrastructure will still there when the price comes back up. They just have to turn the valves and drill/fracture Riggs back on. It could be months or years, but when crude gets back to a favorable price point, the shale oil valve gets turned back on.
If someone goes bankrupt, it will be a low, or mid level holding Corp. When the prices come back up, there might be a different mid level corporate name on the paperwork, but the fat cats at the parent corps will be the same.