Posted on 10/14/2014 6:04:38 AM PDT by ckilmer
That crashing of oil prices is what is keeping the coal industry from using coal for fuel production. Cost to much to setup a plant.
Low energy prices is bad??
Perhaps temporarily for the energy industries but for everything else it’s great.
They respond as rational actors in the market.
Jim Kramer is always wrong. If he says the sky is blue, it’s cloudy. If you want to be correct, do the exact opposite of what he says.
I’ve been watching his schtick for years, and I have yet to see him make a single correct prognostication.
Many energy experts say the world market, which consumes about 90 million barrels a day, has one million barrels more than it needs, although that could easily change if the Islamic State, also known as ISIS, attacked Baghdad and threatened the southern Iraqi oil fields, or if militias suddenly renewed their blockades of oil ports in Libya.
Times seems to think if ISIS grabs more oil fields the price will go up instead of further down. Hmmm.
As for the Arctic, if the Russians were anticipating ice free conditions in the near future, think again. If planning to work a ocean field with ice in place, more expensive to get and deliver. They would need technical assistance.
The OPEC guys import the majority of their base food staples from those importing oil. So far, no one is applying this leverage. ISIS has compromised the indigenous farming operations... expect shortages there if not famine.
Times seems to think if ISIS grabs more oil fields the price will go up instead of further down. Hmmm
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This is true. Almost all of Iraq’s oil is in the southern shia areas. ISIS attacks are in the north. If they went around Bagdad and attacked further south likely the price of oil would go up.
As it is the instability in that country has already capped further oil production increases. That country was set to go from 3 million barrels @ day to six million barrels @ day. However, investors won’t be putting more money there until the war cools down considerably. That won’t be any time soon.
ass........ hole in the ground
Jim Kramer is always wrong.
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Cramer got his talking points from Mike Mears. Here’s the quote from the article above.... (nor is the idea improbable. Permian production started 2014 at 1.3 million barrels@ day. It will end 2014 at nearly 2 million barrels@ day production.)
But the Permian is 1.7 million barrels and it is conceivable that it could DOUBLE over the next two years. That’s right, double.
Last night, I asked the CEO of Magellan Midstream Partners (MMP) , Mike Mears, and he didn’t rule it out. Why would Mears know? Because he runs the biggest pipelines out of the Permian. He told me the numbers jump every single day and the more pipe that gets laid, the more we are going to pump.
Permian oil my ass. Oil is declining in price because the world economy is declining toward depression.
“refineries in Syria were bombed”
In the context of this article... use of our military in the mid-east to REDUCE supplies will be in our national interest.
An historic reversal! Mind-blowing even.
Less dramatically...even if we don’t become independent we will greatly benefit from the capabiliy to put an upper limit on prices.
Ok its both rising supply and falling demand.
I’ll just go on record as saying we need to buy American.
Buy American.
But what about the fact that ISIS takes over and sells for $30 a barrel? How would that make the price go up? Also stuffs about Libya now. They could start selling Libyan oil. Op-ed in today’s NY Post says they are now poised to take over the whole region of North Africa—Egypt, Algeria, Tunisia . . .
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