Competitive market conditions would therefore dictate that Saudi Arabia and other low-cost producers always operate at full capacity, while US frackers would experience the boom-bust cycles typical of commodity markets, shutting down when global demand is weak or new low-cost supplies come onstream from Iraq, Libya, Iran, or Russia, and ramping up production only during global booms when oil demand is at a peak.
Under this competitive logic, the marginal cost of US shale oil would become a ceiling for global oil prices, whereas the costs of relatively remote and marginal conventional oilfields in OPEC and Russia would set a floor. As it happens, estimates of shale-oil production costs are mostly around $50, while marginal conventional oilfields generally break even at around $20. Thus, the trading range in the brave new world of competitive oil should be roughly $20 to $50.
Makes sense to me.
[Update a few minutes later]
I’ve long said that oil over a (inflation adjusted) hundred dollars a barrel was unsustainable. This would seem to validate that.
So are the results telling us that the increasingly popular low carb high fat approach is wrong? That after all there’s no need for official bodies to perform a major U-turn? Not as far as I can tell. In fact it seems the rodent work is highly misleading. Not only are the so called ‘high fat diets’ they are fed nothing like the low carbohydrate diets any informed human would follow, but the animals have been selectively bred to ensure they become fat and diabetic on a high fat diet. This is not research, it is a rigged game.
The documentary project has a trailer out, and a new Kickstarter to complete and release it. It seems to have evolved considerably (and usefully) from the original project.
This obsession with “thin” phones makes me crazy. Have the gay men who run the fashion industry, but hate normal female bodies, taken over tech as well?
I just “upgraded” from my dying Droid Global 2, a phone whose batteries were easily changed, for a Droid 4, which has a better OS, and is 4G instead of 3G, and slightly thinner, but has a non-replaceable battery. I consider it a downgrade.