More Job Losses Coming To U.S. Shale – OilPrice.com 07-16-15

Salient to Investors:

Gaurav Agnihotri writes:

  • The short to medium-term outlook for oil is mostly bearish. The Iran nuclear agreement, Greece, high OPEC production, and China’s market turmoil make an oil price rebound highly unlikely in the near future. Low oil prices will most likely result in more job losses.
  • The US shale sector is already dealing with rising debt and the ever-increasing risk of default. Surprisingly, a recent IHS study revealed that sector has been boosting job creation in addition to supporting around 1.7 million jobs in US. Most US shale industry hedges on production are about to expire.
  • Saudi Arabia is very worried about the coming shale boom in Argentina. George Soros, Warren Buffet, major hedge funds et al are watching as Argentina’s huge undeveloped shale reserves have just opened up to outside oil companies.
  • Goldman Sachs predicts WTI will fall to $45 a barrel by October, making almost a third of US shale oil too expensive to produce, and $50 oil deterring any US drilling recovery this year.

Read the full article at http://oilprice.com/Energy/Energy-General/More-Job-Losses-Coming-to-US-Shale.html

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