Quicksilver Resources INC. HOME COMPANIES ECONOMY NEWS OIL & GAS INDUSTRY ABOUT US CONTACT US Is Shell Actually Responsible For Placing The Cap On Global Oil Price? “Global Oil Price” Oil prices have continued to be a major source of concern among the members of the oil and natural gas sectors. Owing to the continued depreciation of oil prices, companies such as Quicksilver Resources have gone bankrupt. Just over a year ago, the iconic natural gas and oil sector of the US oil market announced its declaration of bankruptcy, citing volatility of the oil market coupled with a crippling rise in oil prices, among other reasons. The truth is that Quicksilver Resources is just one of the many US companies that have decided to pull out of the industry as a result of the continued drop in oil prices. There are also other companies in other oil producing countries which have suffered the same fate. Whether this trend is going to continue or not, lies in the discretion of the major crude oil market players around the world. “The Recent Oil Supply Glut” The Recent Oil Supply Glut The recent oil supply glut which surged over the global oil and natural gas market is to bear a huge blame for the continued drop in oil prices. Most economic experts are actually in agreement on this matter. Granted, the demand and other economic factors have also contributed to the recent drop in oil prices. But the supply glut still bears a lion share of the blame. It is very easy to make this deduction based on the fact that the recent reduction in supply instantly triggered a sharp change in oil prices. For example, OPEC’s deal to curb supplies for the next 9 months instantly caused oil and natural gas futures to gain significantly. This is testimony to the huge impact that supply has on global oil prices. “Where Shell Fits Into The Equation” Where Shell Fits Into The Equation But where does Shell fit into the equation? This is quite interesting especially if you look at it from the supplier’s point of view. As stated earlier, supply has a huge impact on oil prices. Therefore, all major suppliers of oil have a part to play as far as controlling the supply oil and prices are concerned. The demand for oil is influenced by supply and the demand also affects the prices of oil. Therefore, all major suppliers of oil can have a significant impact on the global oil prices. Shell is one of the major producers of oil in the world. In the light of this, it has the capacity to influence the prices of oil. The recent Drilling Productivity Report revealed that the output of crude oil in Shell’s patch will actually continue to rise. The figures that the report revealed clearly show that the amount of oil that the Shell patch is likely to contribute to the overall quantity of oil on the market is going to be quite high. Major examples include the Permian and Niobrara whose output figures are set to increase by 53, 000 bpd (barrels per day) and 13, 000 bpd respectively. These figures will undoubtedly translate to a significant rise in the overall crude oil market supply and would subsequently have an impact on the demand for the commodity. There is little doubt that the prices of crude oil will not register significant gains as a result of this increase in supply. It would be harsh to assert that Shell is singlehandedly responsible for placing a cap on oil prices. Technically, it is among the major contributors to the rise in oil prices considering the amount of crude oil that it is contributing to the market. But it is not the only one spurring a decline in oil prices. Several other major suppliers around the world are currently contributing to the continued drop in oil prices. Contact info We always value the need to keep in touch with all individuals that have a keen interest in the information that is available on the website. Therefore, you can expect to get a response from our end as soon as you have contacted us. We have a team that is readily available to respond to your queries. About Us We are a team of highly motivated oil and natural gas enthusiasts who are willing to go to lengthy extremes to give our targeted audience of page viewers the information they are looking for. You can expect to find information about a number of issues pertaining to the global oil and natural gas sector.