Posted on 01/27/2015 12:48:03 AM PST by Up Yours Marxists
(Reuters) - Collapsing crude prices are confronting scores of smaller U.S. oil producers with the grim choice of either shutting older high-cost wells or burning through cash in the hope of riding out the downturn.
As oil prices fell by more than half over the last six months from more than $100 per barrel, the U.S. oil industry responded by slowing its blistering growth and dialing back expansion plans.
Now, with U.S. crude around $46 a barrel, operators are already closing some small old wells, known as strippers, and tens of thousands of similar wells are on the verge of losing money. A further slide could, by some estimates, idle an equivalent of up to 2 percent of U.S. supply, slowing overall output growth more than expected or even leaving it flat.
(Excerpt) Read more at reuters.com ...
OPEC nations are crony markets. They don't follow the same rules as us self-righteous, law abiding stupid do gooder Americans do.
OPEC nations don't give a damn about their environment. And that makes it hard to compete when the prick feds block every opportunity for us to dominate commodities without some form of letter from mommy EPA.
OPEC nations only care about our money. Most would just soon see us wiped out or forced under Sharia law.
America only cares about cheap crap at the expense of their fellow citizens. Cheap electronics. Cheap cars. Cheap phones. Cheap oil. Most people would run over their fellow parishioners just to make it to service on time.
Only in America would we kill the geese that lay the golden eggs. News flash. There ARE no other geese at the moment. Show me the other geese if you're so damned smart.
It's time to tell the Saudi's to pound sand and take their stained oil and their Muslim asses somewhere else. Break them and you rule energy production. Time to break them, and we can... with the stroke of a pen.
On Tuesday, Obama and a 27 person USA delegation are flying to Saudi Arabia to pay their respects to the new King.
I pray their gas hogging 747 runs out of gas somewhere over, oh, say the Bermuda Triangle.
How much more do you think I should pay for gas?
Sorry. I'm here to pontificate. Low energy prices are good and healthy for everyone except oil patch.
Relax. The oil and gas will still be in the ground when the price next crowds $100/barrel, which it inevitably will. Meanwhile, I intend to enjoy filling my tank for $50 instead of $100, and being able to keep the old oil burner in the basement roaring enough to stay comfy while the gales of winter howl outside.
You are correct in your analysis of OPEC.
But, you are a little too concerned with our oil companies.
Yes, some companies will go out of business due to the Saudi manipulation.
Yes, Obama will use the EPA (latest emissions regulations) to push the base costs for our producers up, in order to protect islamic oil producers.
We must fight that.
But do not fret over our producers. Most will weather this storm.
Personally, I think about $1.50 is a fair price unless the price of oil goes down to $40/bbl.
People in the oil sector may be bitching, but they were bragging when oil was $100/bbl and everyone working in the oil business was doing great. Should have saved a bunch of that money for times like this.
You should pay a fair price. No, when the entire market suffers that is not a fair price. When we subject our American market to unfair foreign trade, that is not a fair price no matter how low it goes.
Regulated patriotic competition is healthy. Biased foreign competition is unhealthy.
Next month I will be celebrating 80 years living on this rock. Never have I seen such self centered unpatriotic panty waists whining about not having 40 cent gas and free handouts as I do in 2015. Consider the fact most of us couldn’t pay for bread without gas. Couldn’t live without gas. Add that to the equation before bitching about gas that’s already cheap to begin with.
Now I ask you, what do YOU think is a fair price for gas considering you’d be SOL without it.
Disagree. Most BIG oil companies will fare well at the expense of smaller companies. This leads to unhealthy monopolies. Enter Saudi’s stage left. Status quo resumes at the swinging crude oil square dance.
There can be a balance, but this will lead to imbalance yet again, for about the 40th time since the 1930’s.
You are talking like a Marxist.
It’s an old trick - undersell the competition until they go out of business. Once you’ve cornered the market, you can name your own price.
Too much pricing power in the hands of too few.
In a free market, etc. etc., but we’re talking OPEC here, not Adam Smith.
Guess Obama was right, once these small companies are done prices will be back up to his levels..
Let’s put this into perspective.
What do you consider a healthy market? Would you consider your electric bill jumping from $50 a month down to $20 a month then up to $130 a month this year for no damn good reason as healthy? What about your rent, going from $500 to $250 then to $700 then back down to $600? Your car insurance? Cigarettes? Anything you budget?
Any market that swings this bad and is this critical should be moderated, especially in times of recessions, or in this case a depression. That’s what the feds are for, when they’re not playing the big overbearing Marxist sugar daddy to lowlife scumbag leaches or sucking Saudi tailpipes.
Really? How so, Mr. Fricklin?
Do explain to this ole coot who doesn’t know his keyster from a rail pipe.
His levels are OPEC levels. And the big oil companies will be most pleased. The minute emerging drilling markets arrive, the minute they’re attacked from all sides.
Convenient...isn’t it.
The most terrifying words in the English language are ‘I’m from the government and I’m here to help.’ - Ronald Reagan
“Unless you become more watchful in your states and check the spirit of monopoly and thirst for exclusive privileges you will in the end find that...the control over your dearest interests has passed into the hands of these corporations.”
~Andrew Jackson
So what is your suggestion?
I want to see government get more out of the way of industry, not add to the regulations and taxes.
I work in the oilfield. Your comments are pretty ignorant. I do know guys that flaunt their money and have a ton of debt. Those guys are going to be hurt in this slowdown. The funny thing is is that you will find those types of people working in any industry. I don’t think that those guys even make up 10% of the oilfield.
I dont know anybody that was bragging when oil was $100. I have a young guy on my crew who just started 6 months ago. He is finally getting back on his feet. A couple of months ago he found out he was going to have his first baby. Last night he told me he is worried he isnt going to have health Insurance when his kid is born. He’s probably right. He wasn’t bragging when oil prices were $100
Or another guy. He’s been in the steel business all his life. He has two daughters 6 and 9. He was falling behind and came to work for us a year ago. His family lives 500 miles away from here and he and his family make the sacrifice of him being gone for weeks at a time so that he can provide for them.
Or another guy. He just joined our company a couple months ago. He’s a hard worker yesterday he told me he wants my job someday. I’ve worked with him a couple hitches and he has the right attitude and work ethic that he could probably do it...if he had the opportunity. He got a little ambitious with his money and put both his kids in a local catholic school. He wanted them out of the public school system. So I and the other guys have been buying him dinner the last few days because the payment for the school came out of his account the other day and he’s broke. I doubt he will still be with us in a month.
Your comments to me are funny because if you are a conservative these men are for the most part on your side. They are patriotic, don’t like Obama’s policies, and love their families.
Every morning at our safety meeting these same guys that you say were running around bragging about $100 oil say a prayer before we go out to work. No one is required to stay for it but no one ever leaves One would think if greed had a hold of them as you allude to one would think the prayer would include the price of oil going back up. But as we have watched oil fall the last six months that has never occured. Every day we pray first for our safety on location, second for the safety and protection of our families while we are away, the protection of our armed forces, and finally that our leaders in Washington would make the right decisions. This isnt just a small group of people either. There are 50-75 of us gathered on the frac location.
When you hear about the oilfield layoffs remember the guys getting laid of are god fearing, patriotic Americans most of whom are out here to provide a good life or maybe even a better life for their families.
If $42 were an unfair price, more oil producers around the world would cease production.
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