The U.S. oil flooding Europe impacted the prices in April of 2018. The Organization of the Petroleum Exporting Countries tried to balance the market. U.S. oil producers and others were negatively affected by the low prices. The companies laid off many employees to make up for the loss of profit. Fieldwood and other drillers went bankrupt. However, there are currently signs of an improving market.
Countries like Saudi Arabia and Russia have had a monopoly on oil production. Some of the oil producing countries are not friendly to the U.S. and others are politically unstable. These countries are a part of OPEC.
Engineers have developed hydraulic fracturing, as well as technologies to lower the cost and well failure rates. In 2014, oil-producing nations had to cut their oil prices in half to compete with countries that used new technologies. In 2018, oil prices have risen to $80 dollars barrel. In August, the U.S. crude dropped to a seven week low.
The U.S. crude has decreased by 14 million barrels. Some experts think a lower oil price is good for the economy because consumers and businesses save money. Others believe a higher price is better for the economy, since it will help the global markets.
A lot of technology companies that specialize in innovative extraction go out of business when oil prices fall. Airlines experience declines in international flights. They sometimes have to raise their prices to make up for the increased oil prices. Domestic oil production in West Texas has seen cost parity with oil-rich nations. In 2017, Texas oil producers saw a three percent increase in their payrolls. Extraction technology advancements will lead to more international flights and the creation of more jobs. The U.S. is predicted to dominate the economy and the global oil market.
Talos Energy is a domestic oil producer. It is focused on offshore oil exploration and production in the Gulf of Mexico. The company has more than 33,000 square miles of proprietary extraction data and its team of experts has worked in the region for decades. Talos supports local organizations and charities.
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