Posted on 09/17/2015 5:29:54 AM PDT by thackney
Now OPEC will sweep in and buy these oil producers cheap after they manipulated the market
If the supply is declining and the price is STILL falling, then somebody is either manipulating the market at a scale not previously encountered, or the economy is MUCH worse than is being disclosed. A collapsing economy does not use very much petroleum for its industrial base, and while there is something of a mini-boom going on with temporarily beneficial prices, there are still businesses going bankrupt and no new ones forming. No net hiring is going on, and the “new” hires do not even equal the number of “discouraged” workers that have abandoned all pretense of seeking a job, and either taking early retirement, or apply for welfare benefits.
Tough to do for a small producers that borrowed money to drill at $8~10 million per well.
Typically in the oil business, cash flow is King.
Even for the big producers, predicting when the oil price is going to rise is impossible. Stock holders expect their dividends every time.
Total global oil production is not declining. Some of the government run companies are producing more because they have to have the cash flow for government spending.
http://www.eia.gov/forecasts/steo/report/global_oil.cfm
It may start falling in the near future, but it has only slowed down while still growing so far.
“Will “re-fracking” existing wells have an impact on well production?”
Certainly will. However, the majority of the cost to drill and complete a well for production is in the fraccing of it, so a refrac has an uphill climb to commercially justify in today’s low price environment.
Permian’s numerous pay zones. Gee overall we have been expecting production to decline for over a year now.
Its Common Core Math, get with the program Comrade!
Seems the only part of the economy that has stayed afloat over the Obama years has been the oil fields that he fights so hard against.
I would make Saudi Arabia and Kuwait pay for their defense. Why should we run up our debt on their behalf? Maybe we should just encourage them to wipe each other out.
I suggested that to Congressmen and my Senators back in the ‘80s. I also sent a letter to GHW Bush about it, and got a nice reply (likely based on zip code) thanking me for my interest in farm policy.
Glad to know that our politicians were listening to our citizens.
This would take away the Saudi’s ability to play us like fools.
I could understand the (then) Democrat Congressmen, but when the White Hut sent back a completely unrelated letter, it was an eye-opener.
Your mail may be counted (or not).
It may be read (or not--likely not).
Chances are, even a handwritten letter will never be seen by your Congressmen nor the POTUS.
The response will be a form letter, likely saying little unless it outlines a predictable position, and may be on topic if yours is one of the convenient pigeonhole topics. If not, I think they spin the wheel and just pick one.
If, however a letter includes a credible threat to the safety or security of the individual it is intended for (which would be incredibly stupid), the writer may expect a visit from people with badges of some sort, with or without the combat gear and flash-bangs.
Chances are the person for whom the letter was intended will never actually read that one, either.
With a Government so insulated from the electorate, from the intentions, desires, and even ideas of that electorate, it is no surprise that they not only think themselves a ruling class, but that they think us ignorant and irrelevant (with the exception of election day).
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