Monday, March 30, 2020

Moon of Alabama — Trump, Putin Will Discuss The End Of U.S. Shale Oil

Trump would have to make a strategic offer that Russia could not resist to get some cooperation on oil prices.But what strategic offer could Trump make that would move Putin to agree to some new deal?...
And what reason has Russia to believe that Trump or his successor would stick to any deal? As the U.S. is non-agreement-capable it has none.
The outcome of the phone call will therefore likely be nothing....
Moon of Alabama
Trump, Putin Will Discuss The End Of U.S. Shale Oil

See also

Reminiscence of the Future

The US is over a barrel.

Andrei Martyanov
Trump Wants To Talk.

3 comments:

Peter Pan said...

Neither party can pump more oil than is being consumed, once storage facilities are full. There is no incentive to cut production, since neither party is willing to let their domestic industry go bust. Demand is flat in spite of low price due to the pandemic.

If oil production were market driven, the lowest cost producer would prevail.

As it stands, this "war" will continue and losses will be written off. Any closure of non-conventional sources (shale oil, tar sands) would be reversed as soon as prices recover. As much as I would like to see non-conventional production phased out, the world is dependent on it. Long term growth in renewables will hopefully change that equation.

Matt Franko said...

Yeah we’re really over a barrel... oil was $160 now its $20... yeah OPEC really has us right where they want us...

Where does Tom find these nut jobs...

Peter Pan said...

Russian nationalists and their blogs... that's where.