tag:blogger.com,1999:blog-5173950.post2814243894365700655..comments2024-03-28T21:41:32.110-04:00Comments on Grim's Hall: Shale crash? Not so fastGrimhttp://www.blogger.com/profile/07543082562999855432noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5173950.post-42088641970944798652015-07-07T12:04:00.828-04:002015-07-07T12:04:00.828-04:00That's a shame, because I was counting on them...That's a shame, because I was counting on them to prop up Greece.Texan99https://www.blogger.com/profile/10479561573903660086noreply@blogger.comtag:blogger.com,1999:blog-5173950.post-50728580253344194942015-07-07T11:42:00.729-04:002015-07-07T11:42:00.729-04:00The longer that oil prices are depressed, the coll...The longer that oil prices are depressed, the collapse of the Venezuelan regime becomes more likely.Gringonoreply@blogger.comtag:blogger.com,1999:blog-5173950.post-89245729248487211592015-07-07T11:39:14.410-04:002015-07-07T11:39:14.410-04:00There is a quote about drilling costs falling betw...There is a quote about drilling costs falling between 20-50%. Drilling costs can be rather elastic. Before the 1974-81 drilling boom in the US, drilling services tended to be low profit margin operations. At the drilling peak in 1981, many drilling service operations had 20% profit margins before taxes. With the collapse in demand for drilling services, from the 1981 peak of 4530 rigs to [guesstimate] 600 rigs, drilling service prices went way down. So it's not as if we are seeing something new.<br /><br />The market at work, once again.Gringonoreply@blogger.comtag:blogger.com,1999:blog-5173950.post-28039458830979735462015-07-06T12:36:59.945-04:002015-07-06T12:36:59.945-04:00Excellent point about the timing.Excellent point about the timing.Texan99https://www.blogger.com/profile/10479561573903660086noreply@blogger.comtag:blogger.com,1999:blog-5173950.post-81571717381044236502015-07-06T12:08:51.778-04:002015-07-06T12:08:51.778-04:00When I first heard that OPEC was trying to depress...When I first heard that OPEC was trying to depress the price of oil to kill shale and tar sand oil, my initial impression was "you're too late". The time to lower the price in order to kill the technology in its crib was before we had it up and running. Or at the least in the first year or so. But they waited too long. Sunk costs were already done, efficiencies were coming online as the technology was used, and basically, they missed their window.<br /><br />So none of what you're writing about surprises me. But it is nice to know that I was right. Someone please tell my wife that I was finally right about something (other than marrying her).MikeDhttps://www.blogger.com/profile/08116809134355184859noreply@blogger.com