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Page added on May 13, 2018

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US will be ‘very strong’ for next 15-20 years due to shale boom

The growth of the shale industry will strengthen the U.S. for the next 15 to 20 years, Borealis Chief Executive Mark Garrett told CNBC on Sunday.

“We’re very positive on the U.S. because the shale oil, the shale gas, we think that the ethane pricing, and the ethane through to polyethylene — and you could even go through into polypropylene from the propane — we think that will be very strong for the next 15-20 years out the U.S.,” Garrett said in an interview with CNBC’s Hadley Gamble.

“So we’ve actually got a large project with Total, we’re building a $3.2 billion complex near Houston. And we think that that’s going to be the future. The U.S. for the next 15-20 years looks very promising.”

Garrett added that President Donald Trump’s tax cuts “have not been bad for business.”

Borealis, Total and NOVA Chemicals formed a joint venture to boost petrochemicals facilities in Texas earlier this year.

The U.S. shale market has grown in recent years following the advent of drilling techniques including fracking, or hydraulic fracturing. The growth of natural gas production and exports in the U.S. comes at a time when the Organization of the Petroleum Exporting Countries (OPEC) — a collective of the world’s biggest oil exporters — and Russia are cutting supply.

No impact from US’ Iran deal exit

Oil prices rose last week after Trump said he would withdraw from a historic nuclear deal with Iran.

Borealis CEO: Restored Iran sanctions have not had impact so far

Borealis CEO: Restored Iran sanctions have not had impact so far  

Trump said the U.S. administration would restore sanctions on Iran. The deal, achieved in 2015 under former President Barack Obama, lifted sanctions on Iran that had cut its oil exports roughly in half. In exchange for sanctions relief, Iran accepted limits on its nuclear program and allowed international inspectors to visit its facilities.

Asked whether he was concerned about Trump’s move, Garrett told CNBC: “Well, for us at the moment we don’t have a specific impact. It’s much more that we have to watch these global movements and then you have impacts because the oil price starts to move up, the cost of products starts to change and things like that.”

CNBC



25 Comments on "US will be ‘very strong’ for next 15-20 years due to shale boom"

  1. Cloggie on Sun, 13th May 2018 4:49 pm 

    “US will be ‘very strong’ for next 15-20 years due to shale boom”

    What was that bang I just heard… OMG, millimind… No!!!

  2. MASTERMIND on Sun, 13th May 2018 4:56 pm 

    Clogg

    Chevron CEO warns US shale oil alone cannot meet the world’s growing demand for crude
    https://www.cnbc.com/2017/05/01/us-shale-cannot-meet-the-worlds-growing-oil-demand-chevron-ceo-warns.html

    Oil discoveries in 2017 hit all-time low –Houston Chronicle
    https://www.chron.com/business/energy/article/Oil-discoveries-in-2017-hit-all-time-low-12447212.php

    IEA Chief warns of world oil shortages by 2020 as discoveries fall to record lows
    https://www.wsj.com/articles/iea-says-global-oil-discoveries-at-record-low-in-2016-149324400

    HSBC Global Bank: 81% of world liquids production already in decline and world oil shortages ahead
    https://www.scribd.com/document/367688629/HSBC-Peak-Oil-Report-2017

    Shale is just a stop gap measure. It can not make up for all the worlds declining conventional supplies.

  3. MASTERMIND on Sun, 13th May 2018 5:01 pm 

    Clogg

    I don’t bang my head over one article with a baseless claim. I analyse a bunch of evidence before coming to a conclusion. I am not like you, and that I run with any story I find that says what i want to believe.

  4. Cloggie on Sun, 13th May 2018 5:03 pm 

    Well, that’s it then, the end of peakoil.com I presume. But perhaps this forum can be kept open so Davy can keep fighting “anti-Americanism” and millimind can keep announcing that his anarchist revolution is just around the corner, a bit like fusion energy.

  5. MASTERMIND on Sun, 13th May 2018 5:07 pm 

    Clogg

    The IEA, Saudi’s, HSBC, Former head of EIA. Are all warning that peak oil is now and oil shortages are coming. If I was you, I would shut up and listen.
    http://www.businessinsider.com/an-oil-crisis-may-be-brewing-and-not-because-of-decreasing-demand-2018-4

    Imminent peak oil could burst US, global economic bubble – study
    https://www.theguardian.com/environment/earth-insight/2013/nov/19/peak-oil-economicgrowth

    German Military (leaked) Peak Oil study: oil is used in the production of 95% of all industrial goods, so a shortage of oil would collapse the world economy & world governments
    http://www.energybulletin.net/sites/default/files/Peak%20Oil_Study%20EN.pdf

    Prepare for Anarchy..Coming soon to a world near you! And when the people lose all hope and have nothing to live for..it will get ugly fast!

  6. MASTERMIND on Sun, 13th May 2018 5:13 pm 

    The days of more and more, and bigger and brighter are over. Get ready for the days of less, and less, and dimmer and darker…and if you wont kill others and eat raw human flesh. You will starve in the future!

  7. Davy on Sun, 13th May 2018 5:57 pm 

    Nobody is holding the door closed, Nazi. Have at it and be gone.

  8. Outcast_Searcher on Sun, 13th May 2018 6:41 pm 

    As if Millimind writing many desperate posts pointing to doom constantly, and never admitting it if he’s wrong constitutes “analysis” of a lot of evidence.

    Yeah, and Trump doesn’t make random tweets.

  9. makati1 on Sun, 13th May 2018 6:48 pm 

    “US will be ‘very strong’ for next 15-20 years due to shale boom”

    Hahahahahahahaha! LMAO! And pigs can fly…

  10. makati1 on Sun, 13th May 2018 6:54 pm 

    That is the most blatant, outrageous piece of propaganda shit that has come out of the US MSM Iron Curtain in a long time. Oops! I forgot, Americans no longer think for themselves, or even know what to think, or even how to thunk.

    Now back to your regularly scheduled program (propaganda). “Ma! Get me another beer!”

  11. twocats on Sun, 13th May 2018 7:34 pm 

    I was thinking about US shale and how its producing around 5 mbpd.

    Imagine for a second that production gone – there wouldn’t be any OPEC cutback and the world would be 3 million barrels a day short. Bye bye longest “bull market” ever. Bye bye civilization – gone – up in smoke.

    Then all it takes is to remember that the entire shale industry is built on lies and a massive array of financing, drilling, sand, water, pipelines, accounting schemes, roads, trucks, idiot investors, and trains to keep it going as fast as it is. One small slip up in any of those factors and it will slacken or stumble. Not to mention if there were ever an outside factor that caused a recession.

    So when peak-oilers were talking about a Manhattan project to retool our global economy to navigate the transition of peak the Scions of the Universe took that concept of Manhattan project and applied it to fracking – a massive endeavor to give us 8 to 10 more years (from 2010). Makes the easter island heads look sober and well-considered by comparison.

  12. MASTERMIND on Sun, 13th May 2018 8:02 pm 

    Trump could hit Europe with sanctions for doing business with Iran: Bolton

    https://nypost.com/2018/05/13/trump-could-hit-europe-with-sanctions-for-doing-business-with-iran-bolton/

  13. Cloggie on Sun, 13th May 2018 9:58 pm 

    Europe could hit the US with sanctions too. The US has the greatest deficit of them all. Eurasia is so much more interesting.

    In somewhat unrelated news, here we have Richard Spencer, discussing the balkanization of the US with jewboy H.A. Goodman:

    https://youtu.be/e03AdvZL6yU

    Goodman says that he likes the US as it is, which makes sense, because the current multicult US was created in their image. Claims that America owes everything to the blacks, points at slavery, ignoring the large jewish role in the large trans-Atlantic slave trade:

    https://youtu.be/e1UkVfwjCCw

    Spencer in contrast fears that whites are facing a terrible future and reserves for himself the right to desire a white ethno-state on former US soil.

    For quite some time the dialectician Goodman tries to persuade Spencer into admitting that he is preparing a bloodbath on US soil, considering the mixed character of the population, but Spencer is not biting.

    For us Europeans, we have never really accepted being colonized by a former colony, only because it was colonized by jews a century ago, who in 1933 teamed up with ZOG-USSR, in order to destroy us:

    https://youtu.be/SKxYebQPBGQ

    Now it is time to “liberate the US back” and beleagered whitey in particular and turning Goodman’s tribe into filet Americain, by having an agreement with Russia and China about dividing the Anglo loot between PBM and China.

    Down Under and parts of the US West Coast and Vancouver go to China, where PBM gobbles up Heartland USA and Scotland, where Greater London goes to the Muslims, just like all major US cities go to darkies.

    Basically we have the situation of 1776 back. At the time the majority of the population tried to escape from the British, today, in as much as they understand the situation, the population wants to escape from Goodman-ZOG, that intends to phase out whitey from the face of this earth.

    What a breathtaking geopolitical drama is unfolding here! The coming standoff finally offers the possibility for Europe to distance ourselves from Washington and play the Russian card and next set itself up as the guarantor of European America, playing into white seperatism in the US and anticipate the balkanization of the joint, in conjunction with Mexico, that will get all the Mexicon majority territories in the SW: Texas up until River Red and the Rockies until the line Reno-Chico, leaving an area around Portland as a gateway to the Pacific for white America.

    Additionally we can have an agreement with Turkey and Iran that Europe will evacuate Israel to a tent city in Upstate New York and bring the poor jews as such into safety in response to an Islamic takeover of Palestine after the downfall of KSA, after a confrontation of the US over Iran against Russia and China, which the US will lose, like it lost over Iraq and Syria.

    http://tinyurl.com/y8ydx6a9

    Expect millions to be killed in WW3, that will be finalized on North-American soil.

    You read it here first.

  14. Makati1 on Sun, 13th May 2018 10:12 pm 

    Cloggie, one 20 minute nuke attack on US cities would kill over 30,000,000. Maybe more. And the rest would die slow, painful deaths from cancers. So would most of the world, if nuclear winter didn’t finish all of us off first. No winner in WW3, only losers.

  15. MASTERMIND on Sun, 13th May 2018 10:50 pm 

    clogg

    Richard Spencer got blasted in his grill by Antifa! The pigs can’t protect you fascist forever!

  16. Anonymous on Mon, 14th May 2018 12:48 am 

    I did some analysis on year to year growth for US oil production:

    Month prod(MMbpd) yrlyincr
    Dec-17 10.0 1.3
    Dec-16 8.8 (0.5)
    Dec-15 9.2 (0.2)
    Dec-14 9.5 1.5
    Dec-13 7.9 0.8
    Dec-12 7.1 1.1
    Dec-11 6.0 0.4
    Dec-10 5.6 0.2

    First column is (end of) year. Second column is the production of oil in millions of barrels per day. Last column is the year to year exit rate increase/(decrease).

    Findings:

    1. Current production has broken ten million barrels per day. An all time record for the US. And breaking the brains of anyone who wrote for The Oil Drum.

    2. The current rate of growth is over one million barrels per day per year. Similar to the rate we saw in 2012-2014. That is colossal growth.

  17. Davy on Mon, 14th May 2018 4:51 am 

    Thanks nony for being on topic and normal unlike others above. Amazing numbers the anti-Americans wail and gnash their teeth over. I will add though shale is economic oil. If the economy suffers a setback it will hit the shale sector hard first.

  18. Darrell Cloud on Mon, 14th May 2018 8:18 am 

    Great, I will be dead before the air goes out of the bubble, but it is the unknown unknowns that trouble me.

  19. dave thompson on Mon, 14th May 2018 11:02 am 

    “Debt has made things seem affordable by selling our energy future forward. This led to the miracle of tight oil and shale gas… The best years are behind us. The growth is done.”

    Art Berman, geologist, commenting on shale oil production in Texas

  20. Anonymous on Mon, 14th May 2018 3:20 pm 

    Davy, agreed.

    Shale needs 50+ to grow. It cannot compete with Saudi oil (they could flood the market with sub 20 if they wanted to…but they are not that stupid.)

    That said, shale has been pretty good at limiting how high the prices can get. If it had not been for the extra 5 million bpd of US oil over last few years, we probably would have been at $150 oil for several years.

  21. MASTERMIND on Mon, 14th May 2018 3:43 pm 

    Shale only needs 50 to grow now? They couldn’t make profit at 100 oil but now all they need is half? That makes no sense. The whole shale ponzi has all of its eggs in one rickety basket now, the Permian. Good luck with that…

  22. MASTERMIND on Mon, 14th May 2018 3:44 pm 

    At least 770 Palestinians shot today by Israeli snipers, 52 fatally, as US embassy opens in Jerusalem

    https://www.haaretz.com/israel-news/u-s-embassy-gaza-protests-and-nakba-day-live-updates-1.6078190

    “But it’s the only democracy in the middle east!”.

  23. Anonymous on Mon, 14th May 2018 9:19 pm 

    Mastermind: the proof of growth is in the growth, itself. Who cares about your arguments on finance when the growth happened (and resumed).

    And I could write a book about what you don’t understand in terms of finance (confusing long term NPV with current year profits). Maybe Rock can explain to you how a well costs money up front and delivers money over time. I don’t have the patience to go over it with you. Even your own side thinks you are a nitwit!

  24. MASTERMIND on Mon, 14th May 2018 9:32 pm 

    Anonymous

    Chevron CEO warns US shale oil alone cannot meet the world’s growing demand for crude
    https://www.cnbc.com/2017/05/01/us-shale-cannot-meet-the-worlds-growing-oil-demand-chevron-ceo-warns.html

    Shale Produces Oil, Why Not Cash?
    https://www.wsj.com/articles/shale-produces-oil-why-not-cash-1498486995

    It takes 2,500 shale wells a year just to sustain output of 1 million barrels a day in North Dakota’s Bakken shale, according to IEA. Iraq could do the same with 60 conventional wells.
    https://www.bloomberg.com/news/articles/2014-02-27/dream-of-u-s-oil-independence-slams-against-shale-costs

    You are pathetic Anyomouse..

  25. Mastercam cluggy on Wed, 16th May 2018 8:34 am 

    They’re losing money on shale. I’ve been telling you that shale is going to collapse for the past 8 years and nothings changed.

    Stop sniffing glue in your mom’s garage and get ready!

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