Myles Udland, Business Insider | December 1, 2014 8:40 AM ET
More from Business Insider
Posted on 12/01/2014 2:15:44 PM PST by ckilmer
Myles Udland, Business Insider | December 1, 2014 8:40 AM ET
More from Business Insider
Oil is getting slammed.
On Thursday, OPEC announced that it would not curb production to combat the decline in oil prices, which have been blamed in part on a global supply glut.
And now that oil prices have fallen more than 30% in just the last six or so months, everyone wants to know how low prices can go before oil projects start shutting down, particularly US shale projects.
In a note last week, Citi’s Ed Morse highlighted this chart, showing that for most US shale plays, costs are below $80 a barrel.
Citi
Morse writes that if Brent price move towards $60 — they’re currently around $72 — a “significant” amount of shale production would be challenged.
But Morse also highlighted this dizzying chart, listing the breakeven price for every international oil company project through 2020. (You can save it to your computer and zoom in for a closer look.)
Citi
The US shale plays
They have done this with natural gas in the past. They would cap areas and not use them because the price was too low. When the price goes up (supply and demand folks) then they uncap them and are good to go
More like, China uses all the oil it produces?
They change monthly. This is relevant how ?
Maybe that is what I heard; that they produce no oil for the world market.
Continued low prices can bankrupt Russia in a short time.
We are just a couple. We have a bath and a half. Right now, we are about 3/4 through a major (read we gutted to the walls) bathroom remodel that included hand shimming a100-year-old very uneven (in 2 directions) floor. So, we will finally have our shower back in another week and yesterday we got the 2nd toilet back. As soon as the entire thing is done, our Christmas and birthday presents to ourselves is a new small indoor hot tub to replace the 25-year-old one sitting on the back deck. Let me add that I felt like we were camping in our house with one toilet and the 3 weeks without a shower. We did it ourselves, including capping and reattaching the water pipes and saved ourselves at least $12K. It was worth it, as we near completion, but I’m not sure it is rampant consumerism driving our bathroom needs/desires. it is more that we work hard and the *luxury* of a hot shower, hot soak and jetted tub at our age is more of a necessity.
We also have 2 cars. One is a 9-year-old economy and the other is 16-year-old van for hauling. Out in the country, if a single vehicle is on the fritz, you are out of luck for transportation. My husband has a 3-day-a-week 90-mile round trip commute and that, plus shopping and some appointments is the limit of our driving.
As to phones, we have the landline for business (one phone out of three is hardwired so it is usable in a power outage)and one dumb tracphone so my husband has emergency communication while commuting. We would never get a smartphone and I work at home and do not need my own mobile phone. So, while we are frugal and, IMO, not excessive, we need a landline upstairs, downstairs, in the shop and one mobile. As it is, without an answering machine, I would miss business calls by being in the wrong place or busy with something else when it comes in.
Those are not what *enslaves* us. It is taxes and insurance, heat and electricity. Cut those and we would actually have disposable income. Right now, lower gasoline and propane costs are a boon to us and our cars, phones and bathroom facilities are not at issue.
Fracking produces a lot of natural gas which if pushed on the market will tend to push the price of oil lower. The price of a barrel of oil will seek its own level. I suspect that will be less than $60.00.
Cool, hosepipe. Thanks to all posters. Very interesting…and BTTT!
Dang...we were in the middle of making adjustments to an oil lease offer for our family farm on the lower edge of Eagleford. I was looking forward to being able to give a portion of the first royalty check to the CRUZ CAMPAIGN. It was just before Thanksgiving when my bro-in-law submitted the offer back to the interested party. Then the news hit. Seems like they already would have known though...
Cloud:
If you want to live off the grid in a small house with one Bathroom, good for you. Do it. Don’t use the power of government to force others to live as you want to. As long as you mind your own business, you and I will get along just fine.
Lol. Your taxes enslave you because you have a LOT of stuff. We lived in the middle east for five years and traveled to many parts of the world over there. You DON'T know what poverty is and you really think that your stuff is minimal. My life is like yours now but I DO know what a trap all this stuff is.
It is a wonderful American trap and I wouldn't trade it for anything.
We are spoiled, dear, but we are too spoiled to know what's on the other sides of the oceans and southern borders. May you NEVER know, see or smell real poverty. No, not even the poorer parts of your inner city are poor the way the rest of the world is.
As for your "enslaving" utilities, well, THEY are decided on by your own city and county and you can reduce them by reducing your usage. Not a fun thing by any means.
You don't even realize how lucky you are to have land lines, hot tubs and two cars. Not TOO many third world folks have those things. Most third world folks wouldn't even know what "hot tubs" or "land lines" were.
God bless America.
I see.
So YOUR answer is to tell ME what to so. It's okay for YOU to mind MY business but I can't vent on the site without the likes of your pokey nose. :o) Figures!
Bump
Actually, we did travel, although many, many years ago. I saw and smelled regular life in Papua New Guinea in 1970. I’ve used *facilities* that were a 55-gallon drum inside a wooden crate with clouds of huge insects for company. That was in 100 degree heat and 100% humidity. And when we moved to where we live, now, indoor plumbing had only been available for about 8 years. Here, in America, in the 1960s and well into the 1970s, we had neighbors who were totally illiterate, had outhouses, used kerosene lanterns and had never traveled more than 5 miles from where they were born. They were happy, had great families and had no idea that they were poor. They raised or hunted most of what they ate. And it regularly gets to -30F here in the winter.
Please don’t patronize with tales of the Third World. Yes, we live with modern conveniences. We worked for them. This house had an outhouse when we bought it. We have improved the place over 40 years, doing almost all the work ourselves. You advise to cut usage to control costs. We do. We use about $60 of electricity/month. Yet our bill is a bit over $100 because of *facility fees* to cover the utility’s fixed costs,taxes I have no hope of getting lowered through my own actions, fees to pay for subsidies to “the poor”. My county has nothing at all to do with my utilities or their costs. I burn wood for 85% of my heat. My house is too old for ductwork, has 2 wall furnaces and no heat outside of propane camp heaters upstairs, which is actually a converted attic.
So, yes, I have had a hot tub for 25 years. It is much cheaper than the electricity and propane needed to keep my home at 68-70 degrees and my utility bills verify this. It is far more economical to heat my core for 20 minutes than to heat the entire house with propane and electricity.
I did not compare myself to denizens of Third World countries. Nor did I plead poverty. I simply said that 2 commodes, landlines plus a dumb tracphone and 2 old vehicles were not materialistic nor enslaving.
However, I still work doing a physical job at 72. I may have more in common with many people in the developing world than you know. It is a mistake to make assumptions about someone’s life experiences from a post or two on an internet forum.
Yes, we kissed the ground, literally, when we returned to America. And God bless it. We agree on that.
Thanks for the ping. I think we’ll see oil go down, until it goes up again. ;-]
I have been begging for a hot tub for 25 years. So..go ahead and get a new one.
I am trying to understand “return on net cumulative capital cost”. Can either of you explain? I find it in the literature and think I understand it, but why is Europe’s so high and ours so low? Competition? Am I misunderstanding that measure?
Which benefits who?
Get one! What is stopping you?
We had a small one person portable tub in a 12’x12’ room we converted to a bathroom. I’m hoping a modern one will be more energy efficient. I can see without it that the old cost about $25/month in electricity. It makes a huge difference in the winter, when our sub-zero temps mean you just can’t get warm, especially if you have to be outside for any length of time.
When we first got it, my husband was disdainful and thought it was effete and decadent. But with the cold the past couple weeks, he really misses it. Of course, he is now 64, so that changes his perspective!!
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