Tag Archives: technology

The Break Even Cost For Shale Oil

Some more recent data and an excellent explanation of why the break even cost for shale oil is a moving target. Especially useful is the description of the horizontal drilling technique.

This explains why US shale oil production did not go down like the Saudis thought it would when recently (2015) they tried to pump more oil to capture market share from the US and others as world prices fell. It turned out to be hard to drive out shale oil producers.

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screenshot-www-forbes-com-2016-12-02-11-02-03  What is the break even cost for shale oil? That depends on a number of factors, and it is a moving target.

Source: The Break Even Cost For Shale Oil

Artificial intelligence will remake global logistics

According to Sean Kilcarr (writing in Fleet Owner), many of the trends in logistics boil down to technological advancements. this article and especially the study from DHL details the types of technology moving to the forefront, and makes the case that they will revolutionize logistics.

I agree with that view. And the good thing about it is that these technical changes allow evolutionary as well as disruptive innovation, and over time will move the entire field to greater efficiency and more effective performance for each customer, perhaps much faster than we think.

Many of the changes are straightforward application of technology using industrial engineering techniques.  They will, however, require a highly educated and technologically literate work force. Those folks are coming along; young folks are already much more computer literate than their parents; but our educational system must still push the general populace by giving opportunities to learn coding, math, science, and engineering disciplines, and to have fun doing it through innovation and experimentation rather than boring classes.

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Global logistics provider DHL believes worldwide supply chains are beginning to undergo a fundamental transformation as more “artificial intelligence” is deployed to handle both the domestic and international movement of goods

Source: DHL report says artificial intelligence will remake global logistics | Fleet Management content from Fleet Owner

Here is the full 55 page report from DHL, downloadable here also:

dhl_logistics_trend_radar_2016 (pdf)