How will the fighting in Iraq affect oil prices or what does it mean for oil production in the US?
Well, the big plunge in the price of oil has happened, and it is heading towards sub $50 territory. No doubt, the effect is being felt on Wall Street, and predictions of dire consequences for the shale oil industry are all around.
The question for those of us who have royalty interests in the shale plays, e.g., the Eagle Ford, is: how will this effect production and royalty payment amounts with existing wells?
Probably won't affect production , unless you mean drilling here in the USA, that will slow way down because of the oil price drop and royalty payments here will take a big hit because of the drop in prices.
Production in the units I have RIs in with one of the larger producers, Marathon, actually increased last month. ????