Guess What Happened The Last Time The Price Of Oil Crashed Like This?

http://www.prophecynewswatch.com ^ | December 6, 2014 | Michael Snyder

[Arthur McGowan]

And why won’t the fracking start right up again the moment the price rises?

[Mark17]

I remember $.25 gas. Life was good.

Yes it was, and when gas went up to 30 cents a gallon, I was outraged.

[piasa]

Overproduction

[Radix]

I do not think that Obama could get elected this year.

[kjam22]

How much of a glut is there?

Prices cannot fall, unless supply exceeds demand.

You've never heard the term "price fixing?"

[AppyPappy]

Banks have a lot of debt riding on high oil prices.

[Tucker39]

However, as soon as it passes, what, $60 per barrel or even less, fracking once more becomes viable, so the frackers are back in business. Looks to me like fracking is a permanent governor to keep the arab price gougers in line.

[Dusty Road]

Who is fixing the price and how are they doing it?

who is fixing the price and how are they doing it

[Dusty Road]

I’ve been in this business for over 40 years and every well I’ve worked on has been fraced. You don’t drill a well without fracing.

[lavaroise]

bttt

[Dusty Road]

“The spike in oil prices was its own bubble, and the reduced economic activity caused by the crash burst the oil price bubble, and it’s price collapsed as well.”

It was the words of one man in 2008 that brought down the high oil prices. The priced started to drop the day after he made the announcement. Lets see if you remember what he said.

[lavaroise]

This type of analysis has indeed never impressed me. They never explain the linkage or transfer of wealth.

Frankly, to me, if junk bonds are bad, people will buy equity. Of course companies have structures in both bond and equity but the first to go is usually equity, not junk bonds.

[kjam22]

Various governments price fix oil and natural gas.

[kjam22]

This is correct. I was in oil and gas for 33 years. They frac vertical wells and horizontal wells. Fracking is not new.

[sgtyork]

Excellent point!

https://answers.yahoo.com/question/index?qid=20110523152741AADzLYt

[Dusty Road]

Since it’s traded on an open market how do they fix it?

[Dusty Road]

Let me add that while OPEC has tried to fix the sell price one of them always sells out from under them.

[9thLife]

I’ve been in this business for over 40 years and every well I’ve worked on has been fraced. You don’t drill a well without fracing.

But you can't get commies elected without lying, so...

[9thLife]

It's a matter of control and power.

Agreed on this.

The OPEC nations need us as customers.

Agreed on this.

OPEC wants customers, seems to be content to preserve the current order.

Russia wants to rule the world and sees a historic opportunity.

[ConservativeMind]

OPEC nations are going to start to implode from having to cut their expenditures. Look at how hard it is for the U.S. Government to cut its budget in half within any given year.

What's pretty funny in all of this is that we will have had to have greatly increased our “provable reserves.” Prior to North Dakota, such reserves were minuscule in comparison. Since people like 0bama spout off based on these numbers, it has/had left us looking like we couldn't support ourselves without massive renewable use (I leave coal out due to “pollution” concerns outside of this context—and, because you can't fill up a gas tank with it).