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Goatseye on 26 April 2016
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mornelithe said:
Goatseye said:

I'm not interested in political propagandas.

I wasn't aware of the US's removal of oil exporting ban. I followed it last year but didn't pick up on it.

I was sure we were still under the policy signed in 75. All I was reading was shale oil companies going belly up because the price/barrell wasn't enough to keep their business afloat.  

US hasn't lowered their production in general because a lot of shale oil companies are drilling even while filing for bankruptcy. But most can't get a contract for new wells. Also, banks are lowering the credit they once showered the energy companies with. 

I brought India because they are becoming more and more self sufficient with new wells they're digging and that's the panorama of the big oil consumers in Asia. They're starting to become more self sufficient and exporting in the process. This is the case of Japan and China.

This is not having a great impact on a lot of oil companies in the US that have been filing for bankruptcy.

Just to chime in on propaganda buzz, Gazprom can just sit and chill on natural gas sales in Europe while waiting for oil demand to go up again with less actors on the market and resume business. 

No, you're missing the point here.  Unlike OPEC, the US Cannot just tell shale oil producers to stop.  They don't have that authority, the oil and gas industry is not Government owned.  So it doesn't matter what the US wants to do in this regard.  Yeah, shale companies were going belly up, but not all of them, and certainly not enough to ignore the fact that the US is sitting on absurd stores of Shale oil and natural gas.  Enough to actually impact Russia and Iran's economies.  And whether it's exported or not, doesn't really matter, if the US can produce absurd levels of oil/gas, they've no reason to import it, which is tantamount to flooding the European and Asian markets.  Driving prices way, way down because Saudi Arabia wasn't (not sure if they still are) cutting back on their produciton.  Again, to impact Russia.

As stated previously, the only way the US could even think of curtailing Shale oil production is through an enviromental issue, which is plausible given all the negative PR fracking has gotten with regards to water supplies.

Bruh, where did I say companies are state owned? I'm talking US as a whole because I'm trying to explain the market within the US and outside.

Saudi Arabia is just producing 8 mil barrels a day, the deal is for them to go lower but they're already feeling the pressure of having low revenues for the past  year and a half. They're threathning to produce 11 million barrels a day. That would totally throw the market into disarray, especially when Iran is refusing to keep their production low, when they have to expand into the market to gain some share.