Posted on 10/14/2014 6:04:38 AM PDT by ckilmer
Yet...................
The saudis are trying to hold onto market share rather than cut production to prop up prices.
Bringing back the gulags will lower labor costs.............;^)
I agree - ISIS is only 5% - 10% of Saudi production at app. 1.2 MMbpd. They are not market movers only followers.
yeah lowering oil prices will hurt Putin. But if prices go lower than 80@ barrel — US oil drilling will be curtailed. That’s not a good thing.
Anything that’s good for the Saudis ends up being bad for us.
GDP growth has been tepid at best in recent years.
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True. But most of what growth there has been in the oil patch.
Actually, this is not so bad for the US as we already have the technoligy and infrastructure in place and our cost of production is mostly below $60 a barrel
Other places are not so lucky
if oil becomes cheap, people won’t support “alternatives”.
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Starting in about 2020 imho electric car prices will come down sufficiently to start a head to head clash with internal combustion engines that will cause a decades long battle between the two systems that will drive down costs and raise efficiencies in undreamed of ways that will cause a pure explosion of wealth around the world.
this is a good thing.
Lower energy costs lowers everything and makes profit for companies. Low cost gas is good for everyone including the producers.
Pray America wakes
Export
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agree.
They are taking over oil fields. They are about to take Baghdad. It is a threat. If they take over the Middle East there goes OPEC. Already OPEC sellers are lowering their prices to compete. Cute as shale oil is, it is not the reason for the price drop. In that, the author is right.
Personally, I think he is wrong about cheap energy being a good thing.
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Cramer is saying that USA could be completely energy independent in 3 years if prices hold up. But if they collapse then the drillers stop drilling and the USA continues to import oil.
I would prefer that the USA became energy independent before prices dropped below 80 @ barrel.
dropping the price of oil is a good thing in so many ways.
1. America is a consumer, so our standard of living will be better
2. Enemies like Russia, Venezuela and Iran that are dependent upon oil income will be forced to draw back
3. Unprofitable renewable schemes will be pressured to be dropped.
Sure, there will be short-time drawbacks on rigs drilling in this country which will impact the oil industry.
However, I have been in the industry long enough to have seen this cycle a number of times. Prices will return. In the meantime, innovation in the industry will continue and it will figure out how to make money at lower prices.
It always does and these down cycles spur some of the best innovation and ideas as it becomes a necessity.
ISIS doesn’t control enough oil to be market moving.
Yet...................
Coincidence is not causality.
Bring back the Gulags? Just staff them with American jailbirds + those who are illegal. It’s a win-win.
But the USA must become energy independent through the use of our own proven resources, not through expensive, unreliable, and unproven “alternatives”.
ISIS is only 5% - 10% of Saudi production at app. 1.2 MMbpd.
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This way overstates ISIS oil production.
Further, many of their refineries in Syria were bombed. What oil they have is mostly in Syria with a little in North West Iraq. Neither places have a lot of oil. When things are going good for ISIS they were making 1-2 million dollars a day. That’s dollars not barrels. Likely that money flow has already slowed considerably.
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