and every shale oil driller is pumping like crazy to get their revenues…
“To a producer in Wyoming, if Brent’s $70 then I’m at $50, then I have to start asking does it economically make sense to keep drilling,” Auers said yesterday. “They might start reallocating capital, you might see projects slowed or shut down.”
“Places that are just starting to build up are going to be hit the worst,” Larry said by phone yesterday. “They’re going to get hit the hardest because it’s harder to get the oil out. Not out of ground, but out of the area.”
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So with every expert in financial media clinging to some hope that oil prices can’t go down any more surely right? The answer is yes… and have already broken below $50… something that may indicate not just transportation issues, but desperation for crucial liquidity needs.
This article is brought to you courtesy of Tyler Durden From Zero Hedge.