The Economist and WSJ on shale oil, the Saudis and oil prices in 2015 and beyond

01/13/2015

The Economist points out that shale oil production technology is at the early stages with production costs likely to come down from an average of $57 a barrel. With the relatively small costs to start drilling in shale deposits and extensive new shale deposits in the U.S. and other parts of the world, shale is likely to remain a factor in oil production and prices for a long time. Any impact of Saudi oil price cuts on shale oil production is likely to be temporary, as new advances in the technology and efficiency will make shale oil a serious source of oil supplies. Already some efficient shale oil producers have costs below $35 a barrel in the U.S., according to the CEO of CSX Railroad. CSX has dropped the fuel surcharge to improve the competitiveness of shale transported by rail from the Bakken shale region in N. Dakota.

Grouped Articles

The new economics of oil: Sheikhs v shale

Economist 01/13/2015

Economist.Com

Back to the Future? Oil Replays 1980s Bust

Wall Street Journal 01/14/2015

Russell Gold, Russell, Gold

New King in Saudi Arabia Unlikely to Alter Oil Policy

New York Times 01/23/2015

Stanley Reed, Stanley, Reed, Clifford Krauss, Clifford, Krauss

Exxon Mobil: Shale to the Chief

Wall Street Journal 03/06/2015

Liam Denning, Liam, Denning

U.S. Producers Ready New Oil Wave

Wall Street Journal 03/14/2015

Erin Ailworth And Benoit Faucon, Erin, Ailworth, And, Benoit, Faucon

Shale-Oil Producers Ready to Raise Output

Wall Street Journal 05/14/2015

Georgi Kantchev And Bill Spindle, Georgi, Kantchev, And, Bill, Spindle