Crude Priced At $75
Bidness Etc discusses the various crude prices experts feel will allow the US companies to break even and highlights the impact of lower oil price on US oil companies next year
Extracts from a Bidness Etc article Published: November 21, 2014 at 10:47 am EST
By: Micheal Kaufman
The hydraulic fracturing techniques used by the US oil companies have revolutionized the US oil industry, leading to high crude oil production from the shale boom. These techniques have allowed the US to produce around nine million barrels of crude oil per day. This in turn contributed to the global supply glut of crude oil. Saudi Arabia has also increased oil production to safeguard its market share from the US producers.
Although higher oil production was initially welcomed by the US oil companies, its repercussions including lower crude oil and natural gas prices caused the oil companies to suffer considerably. Since June, crude oil price has plummeted 32%. Currently, the West Texas Intermediate crude oil is priced at $76.6 per barrel and the Brent crude oil stands at $79.60. Oil price is expected to drop further after Libya resumes production.
Further consolidation in the energy sector can be expected as oil companies try to survive amid the lower oil price.
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