U.S. to Overtake Russia & Saudi Arabia as World’s Top Oil Producer

[Bofferbrauer2]

spurgeonryan said:
Experts warn it could bring down fuel prices? What is the warning for? Be careful! Your about to save money at the tank!!! Danger, Danger!

Shale oil is much more expensive to produce than standard oil drilling. Which means that if the price drop too much (I think remembering under something like 45$ per barrel for shale oil, while it's less than 20$ for standard petrol drilling), it's exploitation would cost more than they could earn on it, and of course production would then be halted by the producing company until the price rises again above production price. This of course will result in layoffs, even though they may just be temporary.

Another problem is that the US economy is more reliant on the petrol, so if the price drops the income of the United States and it's GDP will be strongly affected by a lower oil price.

Last edited by Bofferbrauer2 - on 01 March 2018