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Oil Drops To $68.32

fyi--"that pipeline to the gulf....." would be largely tar sand/bakken oil, neither works at current prices.

it is a pipeline that will transport oil that is now going by train...

I doubt the oil sands would be exported as crude,.. instead we would refine it and export that product..

Which would create profit, taxes and jobs... and make our country less dependent on middle-eastern oil...
 
one thing to consider is demand..

North Dakota oil fields have had a high labor and equipment demand...

as the demand for their oil decrease so will the demand for labor and equipment..

and with less demand.. wages drop a bit,.. rigs and other specialty equipment no longer bring a premium, which lowers the overall cost of drilling for and extracting the crude.

inefficient companies will fail and others will excel in their place..

and that will again reduce costs...

if we had leadership in this country we could really screw over Russia, Iran ect.

Gay ol King Obama may be willing to screw Putin, but Obama acts like he wants to be a bottom..
 
Talked to a friend who is at work in a management postion in the oilfield--and I mean literally IN THE OILFIED. He said this, same as you, Steve:

'inefficient companies will fail and others will excel in their place." and
along with that he said there will be mergers. Companies buying up
other companies. It has happened before and it will happen again."

He also talked about older well-established oil companies that don't pay 40% royalties to land owners, etc. They don't seem to be too concerned.
 
Like I said...if you want to "break" the stranglehold OPEC has, you flood them out. American companies can withstand the pressure longer than them. They see the writing on the wall, with increased North American production...that's why they are doing what they are.

KPMG expert explains why Saudi Arabia can't sink crude prices into oblivion

"The real break even for a lot of these countries is not what they're finding in extraction and transportation costs," Mayor said. "The real price for oil is what are the expectations of their populace in terms of commitments the government has made in terms of subsidies."

While OPEC countries have reserves that can sustain them for a short time, the break-even could be as high as $100 or even $130 a barrel.

"You're going to run out of money very quickly," Mayor said. "Who's going to lend to countries like that because not all those countries will be able to bridge the gap with debt like the US government is able to do."

http://www.bizjournals.com/dallas/blog/2014/12/kpmg-expertexplains-why-saudi-arabia-cant-sink.html?iana=ind_energy&page=all
 
littlejoe said:
[
fyi--"that pipeline to the gulf....." would be largely tar sand/bakken oil, neither works at current prices.

Being involved in 'new pool/new discovery' play, I am reminded once again of how much rabbit some investors have in them.

Dam sure seems to be working IF Bakken Oil it's shipped by Burlington Northern RR. BTW what again is "Your" involvement in "New pool/new discovery". What is a pool??
 
Fell to $65.84 today. Pretty soon Big Willy will be laying off some waitresses, cooks, and bartenders.


Oil prices fell another $2 a barrel Monday, extending a slide that began this fall. After peaking at more than $100 a barrel this year, U.S. crude is now changing hands for less than $65 a barrel—a five-year low.


Some oil market watchers say the price drop isn't over, thanks for a boom in U.S. production and a recent decision by market cartel OPEC not to cut production and tighten global supplies. Analysts at Morgan Stanley said that the resulting glut of oil could push prices as low as $43 a barrel next year.

"Without OPEC intervention, markets risk becoming unbalanced, with peak oversupply likely in the second quarter of 2015," Morgan Stanley analyst Adam Longson said.

Read More › Venezuela is 'desperately looking for funds'

Much of that supply is coming from a boom in U.S. crude from producers who are squeezing more oil out of the ground with improved technologies like hydraulic fracking and horizontal drilling. Though the new techniques have breathed new life into the U.S. oil patch, they're not cheap. And a lot of the equipment and manpower needed to produce that oil has been paid for with borrowed money.

That's left some banks holdings those loans—and their investors—looking closely at the increased exposure on their books to suddenly oil lower revenues. A prolonged era of low oil prices could also hit the broader economies of states that rely heavily on the oil industry for jobs and consumer spending, according to analysts at BMO Capital Markets.
 
TexasBred said:
littlejoe said:
[
fyi--"that pipeline to the gulf....." would be largely tar sand/bakken oil, neither works at current prices.

Being involved in 'new pool/new discovery' play, I am reminded once again of how much rabbit some investors have in them.

Dam sure seems to be working IF Bakken Oil it's shipped by Burlington Northern RR. BTW what again is "Your" involvement in "New pool/new discovery". What is a pool??

I noticed he likes to use the derogatory/enviro whacko "tarsands", instead of oilsands
 
hypocritexposer said:
TexasBred said:
littlejoe said:
[
fyi--"that pipeline to the gulf....." would be largely tar sand/bakken oil, neither works at current prices.

Being involved in 'new pool/new discovery' play, I am reminded once again of how much rabbit some investors have in them.

Dam sure seems to be working IF Bakken Oil it's shipped by Burlington Northern RR. BTW what again is "Your" involvement in "New pool/new discovery". What is a pool??

I noticed he likes to use the derogatory/enviro whacko "tarsands", instead of oilsands

you would think the environmentalists would be over-joyed that you Canadians are cleaning up all that yucky sand so we can have a clean beach when this global warming thing actually kicks in... :shock: :lol:
 
Steve said:
hypocritexposer said:
TexasBred said:
Dam sure seems to be working IF Bakken Oil it's shipped by Burlington Northern RR. BTW what again is "Your" involvement in "New pool/new discovery". What is a pool??

I noticed he likes to use the derogatory/enviro whacko "tarsands", instead of oilsands

you would think the environmentalists would be over-joyed that you Canadians are cleaning up all that yucky sand so we can have a clean beach when this global warming thing actually kicks in... :shock: :lol:

yep, just like cleaning up a big oil spill, in fact they would be out protesting if a pipeline were to ever burst up that way and oil seeped into the ground.

Nimbys from Nebraska, no doubt.
 

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