{"id":2443,"date":"2014-12-04T13:06:21","date_gmt":"2014-12-04T18:06:21","guid":{"rendered":"http:\/\/olduvai.ca\/?p=2443"},"modified":"2014-12-04T13:06:21","modified_gmt":"2014-12-04T18:06:21","slug":"shale-liquidations-begin-sub-50-oil-appears-in-north-dakota-zero-hedge","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=2443","title":{"rendered":"Shale Liquidations Begin? Sub-$50 Oil Appears In North Dakota | Zero Hedge"},"content":{"rendered":"

Shale Liquidations Begin? Sub-$50 Oil Appears In North Dakota | Zero Hedge<\/a>.<\/p>\n

When ISIS dared to steal and sell oil at below market rates, they were dire pirates that needed to be destroyed (and anyone who dared to buy it was pariah).\u00a0<\/em>So when,\u00a0as Bloomberg reports<\/a>,\u00a0crude sold at the wellhead in the Bakken shale region in North Dakota fell to $49.69 a barrel<\/span><\/strong>\u00a0on Nov. 28 (according to the marketing arm of Plains All American Pipeline), you know there is an issue in the US Shale industry. As one analyst notes, “to a producer in Wyoming, if Brent\u2019s $70 then I\u2019m at $50, then\u00a0I have to start asking does it economically make sense to keep drilling, they might start reallocating capital, you might see projects slowed or shut down.<\/strong><\/em>“<\/p>\n

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As Bloomberg reports,<\/em><\/a><\/p>\n

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Oil market analysts are debating if oil will fall to $50. In North Dakota, prices are already there.<\/span><\/strong><\/p>\n

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…<\/p>\n

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The cheaper price for North Dakota crude underscores how\u00a0geographic and logistical hurdles can amplify the stress that plunging futures prices have put on drillers in new shale plays<\/strong>\u00a0that have helped push U.S. oil production to the highest level in 31 years. Other booming areas such as the Niobrara in Colorado and the Permian in Texas have also seen large discounts to Brent and U.S. benchmark West Texas Intermediate.<\/p>\n

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\u201cYou have gathering fees, trucking, terminaling, pipeline and rail fees,\u201d<\/strong>\u00a0Andy Lipow, president of Lipow Oil Associates LLC in Houston, said Dec. 2.\u00a0\u201cIf you\u2019re selling at the wellhead, you\u2019re getting a very low number relative to WTI.\u201d<\/strong><\/p>\n<\/blockquote>\n

Discounts are not that unusual due to location or quality…<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Shale Liquidations Begin? Sub-$50 Oil Appears In North Dakota | Zero Hedge. When ISIS dared to steal and sell oil at below market rates, they were dire pirates that needed to be destroyed (and anyone who dared to buy it was pariah).\u00a0So when,\u00a0as Bloomberg reports,\u00a0crude sold at the wellhead in the Bakken shale region in […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[588,592,723,1462],"class_list":["post-2443","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-oil","tag-oil-price","tag-shale-oil","tag-shale-oil-production"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2443"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2443\/revisions"}],"predecessor-version":[{"id":2444,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2443\/revisions\/2444"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}