OPEC should revise policy, for shale oil production cost not high

OPEC's oil producers should not base their strategic calculations on the controversial prospect that production of the competitive shale oil might eventually cease, opines a renowned Kuwaiti expert.
OPEC states "must not bet" on possible cessation of producing the shale oil "because this will not happen and they rather ought to adopt other methods for marketing," said Abdulsamee Behbehani, an expert in oil and gas strategies, in remarks to KUNA.
Forecasts that shale oil production will stop due to the high cost and falling oil prices are "not correct," he said, noting that the cost of this type of crude is currently in the range of only USD 20-30 pb.
US proven reserves of shale oil in 2014 are estimated at 33 billion barrels, while the proven gas reserves are in the range of 430 trillion cubic feet, said Behbehani.
Cost of a barrel of shale oil had been in the range of USD 70, however it later dropped by more than 30 percent.
Behbehani also indicated that US oil conglomerates' acquisition of small companies is another cause for the fall of shale oil production costs.