Mike said:Cutting our import/export deficit is big deal. We can't continue to spend $Billions$ with other countries in hopes that they'll spend it with us eventually.
Red Barn Angus said:It seems to me the Saudi's and OPEC have taken a calculated risk that they can break some of the US oil companies, especially the ones in the Dakotas and the oil sand production. I'm sure this new US production has hurt them a lot and could hurt them even more if we ever get the pipeline built. They are simply betting they can last longer than we can and then when our drilling is shut down they can raise the price to whatever they want. It's a big gamble, I think, but as stupid as the US is it just might work. If we could get close to self sufficient we would not need the OPEC oil and that worries them. If, as I have read, Russia gets 2/3 of their country's income from oil and gas sales these low prices could be devastating to them. Also the Venezuela and the Middle East. Seems to me this could put the US in a very good position by having our own oil and not spending our money with people who hate us. Also it would put a stop to a lot of the fighting in the Middle East if they could not afford to fight. Would also weaken Russia a lot. If the US would play their cards right it seems to me it could be a real benefit to the US. Just my 2 cents.
If the US would play their cards right it seems to me it could be a real benefit to the US. Just my 2 cents.
Brad S said:$68/ oil on the board translates to $51 with the basis. Drilling has slowed,
These lower oil prices will hurt Russia a lot, and Isis and Iran well about anyone except the Saudies. I think the reduced prices are predatory competition by OPEC, as the price is manipulated to just below cost of new production.
The Saudies did this same thing in the 90s and pushed oil below $10/bbl. the perv just went along saying look at how good my economy is going. The 5$ gas a few years later was the result of atrophied domestic production.
Mike said:The Saudi's would make a profit on oil if it were $5.00 per barrel. Hard to compete with that spread.......
Big Muddy rancher said:In the barber shop in Plentywood MT today. Heard a north western ND company laid off over 40 workers and declared bankruptcy.
Didn't OT say it couldn't or wouldn't happen? :roll:
They may profit, but they would not be able to provide for their citizens. The Royal family would be overthrown. The socialist/fascist way of government in the middle east, and all other oil states, would be destroyed...
...the North American economy would be stimulated. North America would be self sufficient and control the market.
OPEC would soon "break" and lower production, to raise the price.
And then starting sometime in the summer it just shot up and got up to about a million barrels a day by the end of October. That is a staggering growth," he said. "I don't know that I've ever seen growth from one country that fast to be honest. That was kind of like the last tipping point in the market that pushed it to its current decline because the market was just not prepared to absorb all that Libyan oil."
Kingston said Libyan oil hit the market when crude was already plentiful -- so it was difficult to get the market share that Libya wanted.
Despite the fighting, no company appears unwilling to deal with the Libyans.
Libya's production has risen even as violence and political disputes have left the country under the rule of two competing administrations: the internationally recognized government of Abdulla al-Theni and the Islamist-led cabinet of Omar al-Hassi. Both authorities are seeking to keep oil output stable as various militias battle for influence.
"It is almost beyond me that the Libyans managed to maintain production, considering that there is no government, and with all these militias,"
hypocritexposer said:Brad S said:$68/ oil on the board translates to $51 with the basis. Drilling has slowed,
These lower oil prices will hurt Russia a lot, and Isis and Iran well about anyone except the Saudies. I think the reduced prices are predatory competition by OPEC, as the price is manipulated to just below cost of new production.
The Saudies did this same thing in the 90s and pushed oil below $10/bbl. the perv just went along saying look at how good my economy is going. The 5$ gas a few years later was the result of atrophied domestic production.
and I wouldn't put it past obama to be negotiating with OPEC, in secret, to hurt Russia, all the while stating that lower gas prices will be a $trillion dollar stimulus for the United States.
A perfect time for the US to export...if only they had that pipeline to the Gulf.