Posted on 10/26/2015 3:30:15 PM PDT by brownwill6767
nery in Artesia. (Roberto E. Rosales/Albuquerque Journal) By Kevin Robinson-Avila / Journal Staff Writer Published: Monday, October 26th, 2015 at 12:02am Updated: Monday, October 26th, 2015 at 10:52am
Editors note: An earlier version of this story contained an incorrect time frame in a quote from Dan Fine about when prices might dip into the $23 to $28 per barrel range. The quote has been corrected to show that projection for late 2017.
New Mexicos oil and gas industry is bracing for another round of volatile ups and downs in crude prices that could push the market and ultimately production in the southeastern part of the state to its lowest point in more than a decade.
The industry has already been battered by steep price declines over the past year that cut the price of crude from more than a $100 a barrel in mid-2014 to about $44 now. Thats led to thousands of layoffs in New Mexicos oil patch in the southeastern part of the state and, to a lesser extent, in the northwestern San Juan Basin.
(Excerpt) Read more at abqjournal.com ...
Once Iran is able to export to western markets, it can rapidly move back to its full capacity, which in 1979 was 5.7 million barrels per day second only to Saudi Arabia, Fine said. If Iran produces what its qualified to produce, world oil prices could drop back to the 2003 range of between $23 and $28 a barrel, which would have severe consequences for New Mexico. Harder times are coming.
At $23 to $28 per barrel, New Mexico production would hit bottom, said Gregg Fulfer, Lea County Commission chair and owner of the Fulfer Oil and Cattle Co. in Jal.
When Iran comes back on, we could easily see another $15 per barrel drop in price, Fulfer said. That will really hurt us. Theyd be putting a lot more crude on an already over-supplied market and I think well see our economy tank a lot more than today.
The lower gas price is the only relief for many families while food prices keep going up (along with other expenses). Wish there was some great technical advancement to help the U.S. oil patch still make a profit. But the truth is these low gas prices are a great help to middle and lower income Americans.
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http://www.tasnimnews.com/en/news/2015/10/19/893342/iran-calls-on-opec-to-scale-down-oil-output
Iranian Oil Minister Bijan Namdar Zanganeh on Monday urged member states of the Organization of the Petroleum Exporting Countries (OPEC) to cut crude output to boost prices to a range of $70 to $80 a barrel.
OPEC should decide to manage the market by reducing the level of production, Zangeneh said on the sidelines of an oil forum and exhibition in Tehran on Monday, Bloomberg reported.
He added that no one is happy with prices at current levels.
We wont seek permission from anyone for our production, Zanganeh stressed.
We will bring our production back to the market, and the market will absorb it. All of those OPEC members whom I speak with welcome this,” he added....
“Immediately after sanctions are lifted, maybe we within some months we can add at least 500,000 barrels per day (bpd). It does not take that long,” Hosseini said.
“After that we are targeting another 1 million. Maybe in less than a year we can come to our pre-sanction capacity of around 4 million bpd, he added.
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