Posted on 10/27/2014 7:49:15 AM PDT by SeekAndFind
Crude oil just broke $80.
In morning trade on Monday, the price of crude oil fell below $80 a barrel for the first time since mid-2012 as energy prices continue to plummet around the world.
The most recent drop in oil, which has been a bear market since topping out at about $107 during the summer, follows a cut in oil-price expectations from Goldman Sachs' Jeff Currie over the weekend.
Currie took his oil-price forecasts for WTI Crude to $75 a barrel in the first quarter of 2015 and to $70 a barrel in the second quarter of next year.
Longer-term, Currie expects WTI prices to stabilize near $80 a barrel, and Currie said that "uncertainty around the required price to slow down US shale production growth is a key risk to our forecast."
Currie's forecast relies on three key reasons:
* We have greater confidence in the scale and sustainability of US shale oil production. This implies that the global cost curve has shifted lower and that cost deflation is sustainable.
* We forecast that accelerating non-OPEC production growth outside North America will outpace demand growth, leaving the global oil market oversupplied.
* We believe that OPEC will no longer act as the first-mover swing producer and that US shale oil output will be called upon to fill this role.
(Excerpt) Read more at businessinsider.com ...
I was listening to a guy’s podcast last year and he predicted that an energy boom would temporarily stave off the full-on collapse.
“If I owned a well, I’d shut it off.”
Not if you still needed cash flow to pay back loans that funded the whole deal to start with.
Really? A "mere" $80/bbl on 100bpd or more?
But if you had leased your minerals to production company, you don't control the well to shut down.
And if you were an oil company, shutting down the well for a duration means you loose the well and it reverts to the mineral owner to lease to someone else.
Reasons to love low oil prices:
Stick it to the Saudis who no longer control the oil market.
Pisses off the lib enviromental whackos.
Pay less for gasoline at the pump.
well.. mixed feelings.. it will be nice to fill up at the gas station for less..
But the revenue I get from my families oil and gas leases in Texas will also probably go down :(
Mr. B,
I would think diesel would keep better than gasoline, true? And it would be much less dangerous.
The last time gasoline prices dropped like this was just before the 2008 election.
Amazing coincidence that gas goes down during a national election. Kinda like unemployment. It is just magical that way, I suppose.
Yes, just get some PRI-D fuel treatment for your containers.
I remember when regular gas was 22 cents a gallon and Ethel was 40 cents. 1971.
Then in 1973 the price shot up to 40 cents for regular. Regular was much higher.
Then about 1975 Regular was lower in price than the new Lead Free gas so everyone started buying those plastic gizmos to put on the end of a Regular gas dispenser and make it fit a “unleaded” gas tank inlet.
Do you also remember the “test tube” catalytic converter replacement?
Keep in mind, the majority of the cost is spent putting the well into service. It takes far less to run a well than start a well.
Regular was much higher.==ETHEL was much higher.
Impossible!
Because “Peak Oil” ....
All happening IN SPITE OF the 0bola regime.
Imagine if we had a real President in charge instead of Al Sharpton with a better suit and normal hair.
Wow...study up on the issue before posting...please.
I remember the GT Energy Chamber which would save you several gallons per mile. Then I got some additive for the gas which saved me several more miles per gallon. Then I got some metallic pills which when dropped in the gas tank saved me more miles per gallon. Then I got a magnetic alignment kit which aligned gas molecules to burn better and saved me more gallons per mile.
I saved so much gas I had to stop every 25 miles and drain 5 gallons out of the gas tank to keep it from overflowing! ;-D
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