Posted on 02/17/2015 10:29:59 AM PST by Duke C.
At about $50 a barrel, crude oil prices are down by more than half from their June 2014 peak of $107. They may fall more, perhaps even as low as $10 to $20. Here’s why.
“10 dollar a barrel oil would destroy all our domestic production and exploration”.
Exactly. And what we do if the Saudi’s subsequently raised it to $200 a barrel?
The Saudis will wait till all the oil exploration companies in the US are in chapter 13 and have sold off all their oil equipment to either them or another country in the middle east then they will raise their prices.
“If you know what’s going to happen in the future, then you should be buying futures. But experience has shown that only half of these predictions come true....”
No they should be selling future and going short.
Maybe you should revisit economics 101.
You are retarded.
You are the one who is showing their ignorance . What do you have, an 8th grade education?
I think that’s the whole idea. And not only that, it will immediately seize such a chokehold on Putin that—even though the man is a stark-raving madman already—it will give him the ultimate excuse to bust out and invade every Middle Eastern country and capture every bit of oil production.
Not to leave out that Obomination is also a stark-raving madman on his best days as well...
Ok, let’s take apart your silly argument. Suppose oil was on the surface, and it wasn’t necessary to drill hundreds of feet to get to it. You simply pumped it out of a big crude oil lake to the refinery. There was so much that it was essentially free. So would that be bad thing economically? Do you see that your argument is plain stupid.
Gasoline would only be available to those who could afford it—the wealthy. The rest of us will have to wait in long rationing lines to get just enough to go to work and come home. Or utilize large transport buses. Maybe that’s what is going to happen; no more personal vehicles, huge drop in gasoline consumption, gives way to electric jalopies.
Yes, that would be a bad thing. That would mean 100’s of billions of $ a year would not be pumped back into the economy for such things as research and development, manufacturing, transportation and thousands of other jobs. Oil greases the wheel of our current economy. That’s why I said at some point in time, the reset button has to be pressed, but, that can not happen in or current economy until it has been destroyed. This economy can not sustain itself and eventually it will fail in the not to distant future.
Workplace automation will cause more deflationary pressure.
Gas has already went up 40 cents a gallon here in San Diego.. we have cap and trade going on as well..that is going to raise gas tax up to 79 a gallon.. for the environment
If you are a writer for Bloomberg and desperately need people to read one of your articles; a headline stating 10 dollar oil coming; is good way to get the attention your ego desires.
Just Saying!
The anti-fracking oil countries accomplished what they wanted to accomplish. They bankrupted a couple of companies and slowed down fracking.
Oil will settle at 75 a barrel and gas prices around 2.45 a gallon.
And everyone will be happy.
and the SPRING Boutique Blend...is right around the corner in CA....raising the price again accordingly.
Not gonna happen. Too many places are rendered unprofitable at $50, as they fold supplies will drop and the price will go up.
I like his thinking.
The frackers are quickly taking the US off the mideast oil consumer list.
The towel heads are going to find their new “bestie” is a country with mafia business practices and 1.5b expendable people to enforce them.
Since most Islamic terror is financed from this source, I see it as a most welcome development.
I agree..... and I think $75 and $2.45-50 is the best case scenario. I think its doable for a few years.
Exactly right, the $50 a barrel will only bring a certain amount of oil to market, and from what I have learned $50 will bring less than the 80 million barrels a day that the globe consumes. In my view $77 a barrel will bring consumption and demand into balance. And as populations grow and more fiat money is printed, to achieve a balance the price must increase, we may very well see $100 a barrel in the next 10 years as an equilibrium price.
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