Oil prices are at five-year lows thanks to OPEC’s hands-off attitude. But that alone probably won’t be enough to strangle the surge in U.S. oil production.

Source: www.foreignpolicy.com

Do the Saudis even read these analyses coming on project profitability?It it is difficult to believe, that with all those trips and high level delegations that Aramco sends to Houston and with all the keynotes Aramco’s CEO delivers, nobody has picked up the technology effect on shale production costs.

"If the United States needed $80 barrels a few years ago, it can comfortably manage today with prices close to $70, data from different shale plays show. Daniel Yergin, head of energy consultancy IHS, says that 80 percent of U.S. tight-oil production can survive with oil below $70 a barrel. He’s not alone in his optimism: Ed Morse, oil at analyst at Citigroup, has shown that nearly all the big U.S. players — including the Marcellus, Bakken, Eagle Ford, and the Permian Basin — can be profitable with oil at around $70 a barrel."

See on Scoop.it – Oil and Gas Development in Lebanon and East Mediterranean