Posted on 06/06/2013 12:24:07 PM PDT by IBD editorial writer
Petrotyrants: If there was any doubt the U.S. shale revolution is breaking the dominance of unsavory energy producers on global oil supplies, look no further than last week's OPEC meeting, where the alarm bells were going off. At Friday's Organization of Petroleum Exporting Countries meeting in Vienna, the mask of non-chalance about America's new fracking energy boom came off. After years of dismissing U.S. energy production as insignificant and expensive, OPEC suddenly said it would "study" the growth in hydraulic fracturing and horizontal drilling, a deceptively bland response to the biggest challenge the cartel has ever faced on its monopoly. The statement concealed the anything-but-tranquil tone of the meeting, in which members were attacking each other and warning of a split.
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The EPA has a big problem
Texas and Governor Perry.
I have a van with a Mercedes diesel. It is thrifty but mote importantly it will likely go 400 miles. The Euro diesels are hardy stuff. Also, of some import, they are quiet unlike the American threshing machines.
I think those Diesel VW’s get super milage
EVEN IF, shale gas doesn’t turn out to be the miracle everyone is expecting, I still believe OPEC and the Saudis in particular, best days are over.
Its is not 1973 any more. Oil has not been cheap in a very long time, oil price shocks are now known, often expected, and part of the system, and economies have adjusted. US gasoline demand is now at 25 year lows.
Its time to “pivot” out of the Mid-East, especially protecting the fat, corrupt, Saudi Dynasty. They are not our friends.
As to oil - they need to sell it much more than we need to buy it. Let’s see if they can drink or eat it.
How does the China - Mexico oil deal fit into the picture?
Because it would have won!
Our oil is still there.
Wrong. Nobody would frack or drill or produce ANY oil at such a ridiculously low government-imposed ceiling. Price controls never work.
I think those Diesel VW’s get super milage
However, I went for a Scion FR-S. And it only burns premium. Sure is fun though. The mileage is still pretty good (over 30) and I’m a huge fan of Scion. My best friend sold VW until just a few years ago. He recommended against it for a variety of quantifiable reasons.
Cutting like that would make the Arab Spring look like a garden party.
Not while DC is run by Islam.
It all depends on what the break even price is. For Saudi Arabia, that might be a possibility. For places like Iran, or Venezuela, where the reserves are being depleted or the state run oil company isn’t well run, that could be a problem.
True. It's fracking in South America, and South Africa, and Europe (if they can squelch their greenies), and Oz and China.
For some reason people often act as if shale oil and gas are limited to North America. They're not. They're all over the world.
The power of OPEC came not from the money they earn. It came from the potential to shut off the supply. Much like the spice in Dune.
Well, there is now an alternative source of spice, and the Ayrabs can go pound sand.
I think the reason diesel is collapsing price wise wrt gasoline is due to lack of economic growth. Diesel is more sensitive to economic activity as it and the heavier distillates are predominately used in heavy industry as opposed to gasoline.
Falling diesel prices relative to gas can mean a contracting economy (and I think that’s what we’re seeing now) although there are other variables as well.
OPEC will use the Clebes they own to make sure we send money to them.
Lets hope that common sense has come back to the Democrat party. I am reminded of the keystone pipeline and how that went. Crossing my fingers.
Diesel prices rose relative to gas prices in recent years due to new low sulfur requirements the EPA has put on diesel fuel.
..... so why in the frack are gas prices so high????
We also need to write EPA’s epitaph on that same bed of slate infested with all that good oily stuff. EPA is evil. Get rid of ‘em...castrate ‘em...
Lol, well sure it would but how long do you think OPEC can keep that up and survive. Oil is all they have (middle east) and they depend on the income from that to pay all the bills.
If they do it we enjoy $10.00 bbl crude, the economy gets a shot in the arm and the Arabs starve. As soon as they jack the price up the fracking begins again. Currently fracking production costs are about $70.00 on average and this price will come down as technologies improve.
My guess is as fracking technology improves it will put an even tighter lid on OPEC and their ability to jack prices up at will.
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