Tag Archives: shale oil

Why are profit margins persistently high? With decent earnings this quarter, corporate profits as a % of GDP will approach (maybe exceed) 10% again. That is abnormally high compared to the period 1960 to 2000. Margins actually started to rise in the mid-80s but really accelerated after 2000 and outside of the 2008 crisis have remained high. Why? What changed in 2000 to elevate corporate profits so much? Is this just...

Mainstream media often speaks of the great shale gas/oil revolution and how it makes the United States more productive and a net exporter of oil. We wanted to go into more details,we compare oil production costs for U.S. shale and global oil producers. It has to be recognized that long-cycle break-Even costs of shale oil have fallen from 77$ to 62$. As reason for the currently cheap oil we see the combination of two...