$100 Oil Could Deliver $63 Billion Cash Surge to U.S. Shale

Following the oil price spike to $100 per barrel last week amid the escalating war in the Middle East, U.S. President Donald Trump touted the benefits for the producers, now that his campaign pledge to slash energy costs for consumers by 50% is not mentioned in the White House’s PR campaign to contain the fallout from the war on the American consumer. While the producers with mainly U.S. operations would see a windfall from the price spike, the biggest U.S. oil firms, ExxonMobil and Chevron, as well as the other international supermajors with exposure to the Middle East – Shell, BP, and TotalEnergies – are already counting the losses. Separately, TotalEnergies said on Friday that the war in the Middle East had effectively shut in 15% of all its global oil and gas output, while the now-offline barrels account for about 10% of the supermajor’s upstream cash flow.

Author: Tsvetana Paraskova

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