Posted on 03/31/2014 12:25:50 PM PDT by thackney
The long-term outlook for global oil prices is lower, perhaps much lower, giving a strong boost to the U.S. economy while potentially crippling the economy of Vladimir Putin's Russia. Vast new discoveries of oil and natural gas in the U.S. and around the globe could drive the oil price to as low as $75 a barrel over the next five years from a current $100.
The demand side, too, will put pressure on the supremacy of petroleum. For the first time in its 150-year history, the internal combustion engine can be run efficiently on alternative fuels from a number of sources, including natural gas. As these alternatives are increasingly introduced, global consumption of oil will slow its growth and flatten out.
Citigroup's head of global commodity research, Edward Morse, believes the combination of flattening consumption and rising production should mean that "the $90-a-barrel floor on the world oil price over the past few years will become a $90 ceiling." Within a new trading range with a $90 ceiling, Morse sees an average of $75 as plausible.
That's a far cry from the old paradigm, promoted in the past 40 years, which posited ever-greater demand for petroleum as developing economies grew, and a slowdown on the supply side -- the looming prospect of "peak oil," whereby global production maxes out and falls into decline. To the contrary, unconventional sources of crude oil totaling more than a trillion barrels -- the equivalent of more than 30 years of extra supply -- have been discovered in the past five years. The majority is recoverable at $75 or less, and much is now being tapped.
Within the next five years, growth in U.S. production of oil should make this country a net exporter...
(Excerpt) Read more at online.barrons.com ...
Which is why we are seeing pressure to go down to $75 a barrel and the "Methane" is evil and the cause of all ills stories sprouting up everywhere...
Hmmmm, the Saudi Lobby on K-Street working overtime perhaps?
Here comes the mileage tax.
No one will make up for Iran’s budget shortfall indefinitely.
Not Russia nor any OPEC if oil is at $75/barrel.
China does not have a dog in this fight.
On what do you base that stunning statement? How have you determined what price several billion individuals are willing to pay for energy?
I was told that fracking is cost effective down to $30/bbl.
On what do you base that stunning statement? How have you determined what price...
I'd be more interested in knowing why he and so many other "planned economy" types are posting their nonsense on a conservative forum.
We’ll get 75 dollar a barrel oil when the highest bid is 75.
Please explain how it is rigged.
I was told that fracking is cost effective down to $30/bbl.
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There is no set number. As prices drop, more oil plays become less economic to produce. They farther the price drops, the more oil fields become money losers.
It’s always been cost effective, it’s a necessary part of the process and has been since before I was born, that was 64 years ago.
The price of oil is influenced by it’s need and who needs it most will pay the highest price.
“I was told that fracking is cost effective down to $30/bbl.”
We were fracing when oil was 10 dollars a barrel in 98, nobody drills without fracing.
So how much do YOU think it should cost? I think for all the work that goes into creating a gallon of gasoline, $3.38 is a fair price.
So how much do you think it should cost?
Take out the federal tax of .20 and reduce the state tax to .10 and we are getting closer.
Nah, still too expensive.
I’m having a hard time compiling a short list of bad things that I hope happen to you.
Please explain. A reasonable price for oil ensures a robust American oil industry. If oil went to $30 a barrel, just how much do you think we’d be pumping out of North Dakota? Here’s a hint — not much.
With oil being still plentiful if companies were free to go after it (absent the Obamanation being beholden to the environmentalist wackos) offshore, from Canada, through fracking, and by means I don't even know about, it could be $2.00/gallon and still include tax.
Why should I care about North Dakota? If they can’t turn a profit on low net energy oil in an economy with affordable energy, that’s their problem. I’m not obligated to be their profit margin.
You really don’t know much, do you. “Why should I care about domestic oil production?” Because, if the price of oil goes down too far to not make domestic oil production viable, then we are beholden to the Saudi’s and the cheap oil they can pump. You good with that?
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