Lower oil prices are unambiguously good

Human Events.com ^ | October 18, 2014 | Larry Kudlow

[zeestephen]

Re: “$83 is just right...high enough to keep the fracking boom alive.”

Not in the Bakken.

CNBC had two energy economists on last week.

New shale wells there have a $78 break even, and they are 90% depleted within 2 years.

New drilling will come to a complete halt if it looks like the Saudis will continue to hold prices down.

By the way - the Saudi break even is around $10 a barrel.

[grania]

how much is from the Saudis turning on the spigot to drop the price and kill US and Canadian projects? The Saudis....take a short term hit rather than lose market share (shortened)

That was what I was wondering, stated much better by you. The other thing is will it have a negative impact on those area of the US that have the most economic success. Besides that, the money not being used on our own resources will be used on imports.

I don't see long term how it makes the US economy more self-sufficient or US citizens more employed, especially since domestic oil production provides high paying jobs.