The Oil Paradox: Why Today's Prices Could Turn into a Crisis.


Harold Hamm, the founder of Continental Resources, states that American shale oil producers are facing many challenges due to falling prices. He notes that this leads to a reduction in drilling new wells.
'When the price of supply becomes lower, you can't 'drill, drill, drill'' - says Harold Hamm.
The founder of Pioneer Natural Resources also urges caution in increasing production due to rising costs and falling prices. He warns of potential denial of oil reserves.
However, the current price situation may positively affect the availability of some fields. With rising prices, they may become more profitable for extraction, reducing risks for the industry.
The USA and Canada are among the largest producers of oil and gas, but the current price situation could threaten their strategic security and competitiveness.
The problem also lies in the absence of external buyers. Countries that previously bought treasury securities are now selling them or stopping purchases. There is also a shortage of foreign investors, leading to rising interest rates.
Analysts believe that the optimal price for oil for the USA should support domestic production, prevent sharp price increases, and help achieve financial goals. A significant drop in prices could lead to industry contraction and rising prices and tariffs in the future.
Read also
- NATO General Explains How the 'Korean Model' Could Work in Ukraine
- The Armed Forces of Ukraine identified enemy military strongholds in Donbas
- War Crimes Against Ukrainian Children: UN Secretary-General Includes Russia in the 'List of Shame'
- Enemy meat attacks have reached their peak: what is happening in Kup'yansk
- Lightning Develops by the Hour: Officer on Russian Drones near Vovchansk
- Children continue to be killed and deported: USA condemns Russia's actions at the UN