Why The US Is About To Be Flooded With Record Oil Production Due To Plunging Oil Prices
by Tyler Durden
ZeroHedge.com
12/19/2014
One would think that plunging oil prices and the resulting mothballing (or bankruptcy) of the highest-cost domestic producers would lead to a collapse in US oil production. And sure enough, if looking simply at headline data like the Baker Hughes count of active rigs in the US, then US oil production grinding to a halt would be all but assured. However, what will actually happen, even as the highest-cost producers and those with the weakest balance sheets are taken to their local bankruptcy court, is that as Bloomberg reports, the US is – paradoxically – set to pump a 42-year high amount of oil in 2015 “as drillers ignore the recent decline in price, pointing them in the opposite direction.”
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