What Happens If Oil Prices Keep Falling?

The video discusses the new oil order with the US as a key player in oil production, affecting WTI and Brent prices. Despite potential price drops, major oil companies remain optimistic. The video explores the impact of falling prices on exploration and drilling, with potential budget cuts and strategic shifts to stable production areas. It also covers break-even points for shale formations, emphasizing the need for sustained low prices to affect operations.

What is the predicted price range for WTI and Brent oil according to the new forecasts?

• $80 for WTI and $90 for Brent

• $75 for WTI and $85 for Brent

• $60 for WTI and $70 for Brent

• $85 for WTI and $95 for Brent

What might happen if oil prices fall further?

• Expansion of drilling operations

• Immediate shutdown of all rigs

• Increased spending on exploration

• A budget freeze and reduced spending

According to Sanford C. Bernstein, what fraction of US shale formations are unprofitable?

• One-fourth

• One-third

• Two-thirds

• Half

What strategy might US drillers adopt to manage budget constraints?

• Invest in new experimental prospects

• Shift rigs to proven production locations

• Increase spending on marketing

• Focus solely on international markets

What is the estimated break-even point for the Bakken shale formation according to Chris Grisanti?

• $60 to $65

• $75 to $80

• $65 to $70

• $50 to $55