Russian oil predicted trouble for the U.S.

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Photo: Igor Chernikov / “Kommersant”

Russian oil companies may soon face fierce competition from producers from the U.S., writes Bloomberg. This will contribute to the development of new technologies that will make production of shale oil is much cheaper.

The publication conducted a study and found that the cost of production of a barrel of us shale oil, which until recently amounted to $ 45, next year could fall to such a level that producers will be satisfied with the market price of 30 dollars (now it is around 54 dollars per barrel American WTI).

It is also noted that the American oil companies (mostly from three companies: Chevron, ConocoPhillips and Phillips 66) accumulated 114 thousand drilled, but not used wells throughout Texas and new Mexico. Still they stood idle from-for unprofitability of production, but is now unable to earn due to the fact that production costs will drop significantly.

The development of the shale gas industry will hit traditional market players, primarily from OPEC (Organization of countries-exporters of oil) and Russia, the authors write. On December 6, they will discuss the future of the agreement on production cuts. While its participants will be faced with a dilemma: whether to cut production to raise prices, but to concede market share to competitors from the USA, or keep it at current levels, but short of important to their budgets the money due to low prices.

Us oil companies anticipate a quick profit, the Agency said. Their main current problem is the need to transport fuel produced by refineries (refineries) and tankers in the Gulf of Mexico. Existing capacities will be insufficient if the increase in production. In the next two years, companies plan to open seven new pipelines.

Video, photo All from Russia.

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