February, 2015 – InvestorLiterature.com Review

Written by Bruce Grantier. Posted in InvestorLit Updates

This Review is an update of the previous Shale Oil Review written in 2014(5). Since then oil prices have declined from over $110 to around $50 per barrel and considerably changed the economics of shale oil drilling plus other forms of production as well. In this review we show the history of oil pricing since the 1970s, show how shale oil costs compare to the other major oil production sources, review the economics of shale oil production at these lower crude prices, and briefly discuss the impact on oil sands, LNG and rail shipping. We review the reasons for OPEC allowing a crude price decline and conclude with the overall suggestion that shale oil production is likely to slow down and crude oil prices will ultimately likely recover.

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