Financial Times

High oil?price ‘fuelling US shale output’
Financial Times

High crude prices are encouraging continued US shale gas investments and production, as investors and companies look for favourable returns in the energy sector, said Goldman Sachs, one of the leading commodities businesses on Wall Street.

Oil-producing countries such as Russia and Saudi Arabia needed to realise that the longer the prices of oil stayed up, the more money went into US shale oil and gas projects, said Jeff Currie, global head of commodities research.

The US oil and gas sector has enjoyed a sharp rise in capital expenditure, with spending in exploration and production totalling $138bn in 2011 compared to China’s $35bn, $10bn in Russia, and $5bn in Saudi Arabia according to Goldman. One of the key reasons that the US has seen an inflow of investments was America’s favourable tax regime, said Mr Currie.

“I don’t want to get too excited, but [shale oil] will reduce headwind for the economy,” he said, adding that the increase in cheap shale oil will increase the US manufacturing sector’s productivity. Goldman believes the continuing rise in shale oil production could improve the US trade balance by 1.2 per cent of GDP by 2017, strengthening the dollar by 5 per cent to 10 per cent.

Et pendant ce temps au Québec on regarde passer la parade… Bravo au péquiste, ce sont les princes saoudiens qui sont contents…