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Crashing Oil Prices Could Bring The US Fracking Boom To A Sudden And Disastrous End
Business Insider ^
| 11/3/2014
| Sam ro
Posted on 11/03/2014 2:09:43 PM PST by SeekAndFind
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To: OpusatFR; thackney
The Saudis appear to be trying to crash the shaleoil industry. They cut production and raised prices to Europe and Asia, but cut prices to the US. Hmmm...sound familiar Doc?
21
posted on
11/03/2014 2:23:24 PM PST
by
ROCKLOBSTER
(Celebrate "Republicans Freed the Slaves" Month.)
To: SeekAndFind
To make matters more complicated, many of these energy companies are financing their operations by borrowing in the junk-bond market, which means borrowing rates are relatively high. Not too smart. Seems like they are in a classic price trap.
22
posted on
11/03/2014 2:23:57 PM PST
by
Lorianne
(fed pork, bailouts, gone taxmoney)
To: E. Pluribus Unum
OMG! An oil boom/bust cycle!?
This has never happened before!!! BTTT
23
posted on
11/03/2014 2:24:03 PM PST
by
thackney
(life is fragile, handle with prayer.)
“Oil” does NOT equal purely energy. If the industry suddenly stopped producing you have no idea how high prices (across the board, on everything) would actually go. “Oil” is refined into many, MANY different forms for countless uses from (yes, fuel) what goes into our tanks, fertilizers, the saran wrap in your kitchen drawer to makeup sold in department stores. There are not very many products or consumables “out there” that do not use some form of oil. (It is kind of like it was put here for our use; creepy huh?)
24
posted on
11/03/2014 2:24:26 PM PST
by
Ghost of SVR4
(So many are so hopelessly dependent on the government that they will fight to protect it.)
To: Redleg Duke
Time for a 40% tariff on Middle Eastern oil! No increase in government taxes and greater government interference in the market.
25
posted on
11/03/2014 2:24:50 PM PST
by
thackney
(life is fragile, handle with prayer.)
To: ROCKLOBSTER
26
posted on
11/03/2014 2:25:03 PM PST
by
Ghost of SVR4
(So many are so hopelessly dependent on the government that they will fight to protect it.)
To: SeekAndFind
Low prices will increase consumption and demand. Prices seesaw back and forth as capacity and demand try to catch up to one another.
It’s called The Market. (As I’m sure you and most FReepers understand.) The weak and marginal plays and players will get weeded out and some sort of equilibrium will be established until some other influence enters into the equation, like a relaxation on exports. Exposure to international pricing signals will raise prices and encourage more production.
27
posted on
11/03/2014 2:26:14 PM PST
by
SargeK
To: SeekAndFind
Good. The USA engineers are forcing Mid East pirates to play. Charge to much we ramp up the fracking.
28
posted on
11/03/2014 2:26:26 PM PST
by
eyedigress
(e(!zOld storm chaser from the west)/?s)
To: ROCKLOBSTER
That would be Me.
Like the old travel ads said "Ski Me."
29
posted on
11/03/2014 2:26:45 PM PST
by
Paladin2
To: SeekAndFind
I wonder how much the Saudis pay them to write that dribble.
30
posted on
11/03/2014 2:26:58 PM PST
by
jyro
(French-like Democrats wave the white flag of surrender while we are winning)
To: Iron Munro
Amazing, though, isn’t it how so many have lost faith in or are entirely ignorant of the existence and functions of markets?
31
posted on
11/03/2014 2:28:24 PM PST
by
SargeK
To: Ghost of SVR4
It is common knowledge, the US has more than adequate suppies of oil should the environmentalists be shut the hell up and told to stay out of the way. Fracking has been a good thing for the US and the natural gas supply.
32
posted on
11/03/2014 2:28:38 PM PST
by
DaveA37
To: SeekAndFind
Morgan Stanley estimates the average breakeven oil price for these US plays to be about $76 to $77 per barrel. Goldman Sachs puts that number at closer to $75. Thank you for sharing, Morgan Stanley and Goldman Sachs.
Now go to hell.
To: SargeK
Pipelines in No. Dak. and E. Mont. would help get more $$$ to the well heads.
The gov't has 0% interest and should help finance same. Talk about building infrastructure.....
34
posted on
11/03/2014 2:29:14 PM PST
by
Paladin2
To: Sacajaweau
why cant we double our reserves at these prices. Build more storage facilities. How many days reserve do you think we need for OPEC imports?
Why after a few years of increasing our own domestic supply should the government start building more reserve?
35
posted on
11/03/2014 2:29:22 PM PST
by
thackney
(life is fragile, handle with prayer.)
To: painter
Your opinion? So called conservatives wanting more government regulations, taxes and spending sounds insane.
36
posted on
11/03/2014 2:30:06 PM PST
by
thackney
(life is fragile, handle with prayer.)
To: SeekAndFind
An article I read yesterday pegged the breakeven about $10 lower than the mid-70 dollar figure from Morgan-Stanley. I think the oil companies have got longer staying power than M-S is allowing for unless they’ve borrowed at too high of a rate, as noted by one poster. This will be a factor that separates the buyers from the sellers.
37
posted on
11/03/2014 2:30:06 PM PST
by
T-Bird45
(It feels like the seventies, and it shouldn't.)
To: Texas Eagle
RE: Thank you for sharing, Morgan Stanley and Goldman Sachs.
I have a strong feeling you don’t like either of these two companies.... :)
38
posted on
11/03/2014 2:30:13 PM PST
by
SeekAndFind
(If at first you don't succeed, put it out for beta test.)
To: SeekAndFind
Is USA getting more oil from USA than Saudi Arabia now? Does anyone know?
39
posted on
11/03/2014 2:31:18 PM PST
by
MNDude
To: SeekAndFind
Don’t worry. The price of oil will go back up after the election.
40
posted on
11/03/2014 2:33:31 PM PST
by
aomagrat
(Gun owners who vote for democrats are too stupid to own guns.)
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