OPEC meets 5 June in Geneva to discuss the cartel’s strategy for the coming years. Reuters News Agency has obtained the draft report of OPEC’s long-term strategy. This report’s content will be a key discussion at the meeting. The report suggests that the global oil glut could persist for the next two years. In general that seems like pretty good news for the world and specifically for U.S. if not for the OPEC cartel and Russia.
The drop in oil prices that began late last year did not shut down the fracking wells that were already producing as the wells continued to operate to cover their variable costs. It did cause drill rigs to be cut every week for 23 weeks. Reuters reports that only one rig was cut the week of 18 May. Experts seem to agree that fracking can be profitable at a West Texas Intermediate (WTI) price around $60/barrel. That price level should bring on more fracking operations. Today’s price is $59.89. (changes often.)
Climate Change Sanity 