OPEC Bewildered -- Bloomberg -- Sunday, June 25 2017

Active rigs:

$43.17	6/25/2017	06/25/2016	06/25/2015	06/25/2014	06/25/2013
Active Rigs	58	30	76	193	187

OPEC bewildered -- Bloomberg. There are several things to focus on while reading this story:

• rifts in OPEC; Prince Salman may have his sights on Iraq next (Iraq and Iran becoming a bit too friendly; Iraq exempt from production cuts and seems to be taking advantage of the situation)
• phony OPEC stories suggesting without $100 oil to finance infrastructure, oil shortages will occur
• light, sweet oil glut in the US; OPEC does not produce light, sweet oil --not mentioned in the article
• majority of US refineries optimized for heavy oil (Canadian oil sands - Keystone XL; Venezuela - imploding) -- not mentioned in the article
• but this is most interesting:

OPEC has completely misjudged the North American shale industry and seems not to understand how it is still evolving rapidly. It's a little like trying to explain the internet to my 85-year-old mother, or my 12-year-old daughter trying to explain social media to me. As consultant Morten Frisch tells me, drilling horizontal sidetracks from abandoned wells in the Permian Basin is yielding a 91 percent internal rate of return on a $7 million investment and delivering 1,500 barrels a day of crude. He predicts large production increases from vertical wells in previously produced areas in the Permian.