Ding Long: What does the U.S. shale w88 casino dilemma mean
(Source: "Global Times" 2020-07-06)
In the context of low w88 casino prices, the U.S. shale w88 casino industry is facing unprecedented difficulties, and many leading companies have filed for bankruptcy. It has only been 10 years since shale w88 casino achieved commercial production, set off a wave of energy revolution, and now is struggling. The rise and fall of shale w88 casino has reshaped the world's energy landscape and enabled the United States to achieve energy independence. The United States becoming an w88 casino exporter has also reduced the strategic value of w88 casino and the strategic status of the Middle East. This drop in w88 casino prices has also had a significant impact, causing the shale w88 casino industry to struggle.
In fact, the plight of the shale w88 casino industry is not surprising. This industry has many inherent flaws. First of all, shale w88 casino is non-traditional w88 casino and is difficult to extract. High w88 casino prices and scientific and technological progress have enabled commercial extraction, but it is still a price-sensitive and fragile industry. Secondly, shale w88 casino is an asset-heavy industry and is mainly driven by financial capital. Wall Street financial capital intervened in the shale w88 casino industry, causing asset bubbles and laying the foundation for the long-term development of the industry. Third, the shale w88 casino industry is restricted by infrastructure such as w88 casino pipelines and cannot take full advantage of the price cycle. Shale w88 casino product quality and stability are also inferior to traditional w88 casino. Fourth, backlash seems to be the unavoidable fate of shale w88 casino. The development and production growth of the shale w88 casino industry will inevitably lead to a decline in w88 casino prices, and high costs are precisely the Achilles heel of the shale w88 casino industry.
Of course, it is too early to issue an "obituary" to the entire shale w88 casino industry. First, a rebound in w88 casino prices can be expected in the future. Shale w88 casino is a sunrise industry, and there is still room for reductions in extraction costs due to technological advancement. Second, the shale w88 casino revolution has enabled the United States to achieve energy independence. For such an emerging pillar industry, the U.S. government, business community and financial community will not give up easily.
The rise and fall of the shale w88 casino industry has far-reaching political and economic consequences. As a dark horse in the energy industry, the rise of shale w88 casino has changed the world's w88 casino pattern, diversified production entities, and caused output to get out of control. The current world w88 casino landscape is dominated by Saudi Arabia, Russia and the United States. No one party can dominate the world and can only choose to coexist. Traditional w88 casino-producing countries are trying to strangle the shale w88 casino industry through price wars, but the basic need for profitability forces them to limit production and protect prices. Saudi Arabia and Russia not only want to keep w88 casino prices at a relatively high level, but also want to strangle the shale w88 casino industry. This is an almost impossible goal, which creates survival opportunities for the shale w88 casino industry.
From a cost perspective, traditional w88 casino-producing countries have obvious advantages on the surface. The cost of crude w88 casino is only a few dollars per barrel. However, these countries have a single economic structure and rely heavily on w88 casino revenue. The w88 casino price they need to achieve fiscal balance is far above the cost of shale w88 casino. For shale w88 casino, low w88 casino prices mean corporate bankruptcy, but for traditional w88 casino-producing countries, it may mean national bankruptcy. The shale w88 casino industry is currently in a downturn, but this will lead to a reduction in supply and a recovery in w88 casino prices, which will ultimately help the industry recover. Therefore, the current shale w88 casino industry is just in "hibernation" or "dormant".
After the rise of new energy and alternative energy, w88 casino has stepped down from the altar and its strategic significance has been weakened. w88 casino prices are more affected by supply and demand, and major geopolitical events such as the attack on Saudi Aramco have failed to change the trend of w88 casino prices. Since the w88 casino crisis, the world has never experienced an w88 casino supply shortage, nor has w88 casino been used as a weapon of sanctions again. In this sense, the rise and fall of the U.S. shale w88 casino industry and whether the United States can maintain energy independence are mainly economic issues.
The shale w88 casino industry is in trouble, triggering discussions about the increasing importance of Middle East energy and the recovery of the Middle East's strategic status. However, in the context of w88 casino surplus and even loss of strategic significance, w88 casino in the Middle East is not as scarce as it used to be, and the decline in the strategic status of the Middle East is also an inevitable trend. The United States is still importing Middle Eastern w88 casino due to the need for variety allocation, but it is becoming a reality that the United States no longer needs Middle Eastern w88 casino. Therefore, the decline in shale w88 casino production may not necessarily prompt the United States to turn its attention to the Middle East again. With an abundant supply of w88 casino, the United States has many sources of w88 casino to choose from. For the w88 casino-producing countries in the Middle East, big buyers like the United States are eager to get it.
The U.S. energy community believes that Saudi Arabia should bear most of the responsibility for the tragic situation in the shale w88 casino industry by suppressing w88 casino prices. The United States cannot continue to be kidnapped by Saudi Arabia and Middle East w88 casino. This shows that w88 casino is not only no longer the basis of the Saudi-US alliance, but is also becoming the cause of conflicts and friction between the two sides. Reducing investment in the Middle East has become a bipartisan consensus and an established national policy in the United States. The United States will not re-examine its Middle East policy due to the shale w88 casino revolution.
(The author is a researcher at the National Institute for Opening up, w88 casino, and director of the Gulf Research Center)
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