Posted on 12/11/2014 12:06:33 AM PST by Berlin_Freeper
As the infighting among the worlds oil producers heats up, the global price of oil is heading down.
Open sniping between leading members of OPEC put new downward pressure on oil prices, with the price of benchmark U.S. crude falling another 5 percent, or $3.07, to $60.75 a barrel in trading Wednesday. Oil prices, which topped $107 this summer, have now fallen more than 40 percent since June.
Analysts said the price fall, which is having profound ramifications throughout the global economy, reflects a variety of factors, from slumping demand in China and political instability in Libya to new sanctions on Russia and the U.S. production boom tied to the shale oil fracking revolution. But the inability of OPEC and other suppliers to pull together and ease a glutted market is becoming a growing factor in the market equation.
(Excerpt) Read more at washingtontimes.com ...
Good time to replenish the reserves.
I wonder if the infighting won’t turn into war fighting.
Looked at the futures markets for light crude and Brent crude. By 2021 Brent futures are under $83. By 2021 light crude is under $76, I think. Another site said that Canadian tar sands oil production is not practical for less that $95 except for less than 10% of production which can go as low as $75. With that situation, the Keystone XL Pipeline may loose momentum.
I read reports in Barrons suggesting that oil could go as low as $35 and be relatively stable around $65. Can’t wait to see the future.
Amazing how a Cartel that keeps oil prices high, effectively extorting trillions from Western economies and transfering it to enemies of Western Civilization, is described in such glowing terms:
“But the inability of OPEC and other suppliers to pull together and ease a glutted market is becoming a growing factor in the market equation.”
On the oil sands, although perhaps not on every part, I think established companies can make money she oil is only going for $40/barrel. There’s no exploration when it is this low, but what has been developed can still be profitable.
are the price of groceries going to go down along with the downward spiral of gas prices?the price of groceries and just about everything else went up drastically when gas prices went up why don’t they go down when gas prices go down?
Obama: Whoo! Hooo!
I can raise taxes!!!
The dims want to sell reserves. That's why we call them dim.
Not so surprising since they believe that we should be punished by high energy costs - make it too cheap and Freedom happens...
I assume you are talking about the Strategic Petroleum Reserve (SPR). Replenish implies it was drawn down. It is barely off the top peak.
How much oil do you think we need in the SPR? How many days of OPEC oil imports?
That is just silly. Their production rate climbed for decades at lower prices. The growth will be slower at $60 than $100, but it will still continue growing.
Not all oil sands projects are created equal, of course. Cenovus, which uses super-hot bursts of steam to melt seams of bitumen buried too deep to mine, says it can coax oil from the sands for between $35 and $65 (U.S.) per barrel, depending on geology and other input costs.
Full speed ahead, TX oil men. You can break OPEC if you don’t cave.
High oil prices are a tax on the US middle class paid to mostly third world tin pot dictatorships. Screw ‘em.
This is why the Saudi's can continue to pump at current levels. Their infrastructure has long been paid for, everything that comes out of their wells now (sans labor costs) is pure profit. They know they can pump at current levels for a very long time without feeling too much pain.
As opposed to the American fracking boom which has high start-up infrastructure costs that relies on higher costs per barrel to recover the high start-up infrastructure costs quickly.
The only way we win this pricing game against the Saudi's is via continued innovation in fracking and horizontal drilling to continue to drive OUR extraction costs per barrel down.
So the choice here is to place your money on the Saudi's, or place your money on American ingenuity and innovation to drive our own extraction costs down while increasing production to maintain profitability and pay off our own infrastructure quickly.
My money's on America. Never bet against good old fashioned American innovation and ingenuity. We STILL are the best in the world in that game.
No, everyone else in the supply chain gets to split that.
PING!
A valid point, which under normal circumstances I'd agree with ---- however even with the Obama Administration and EPA doing everything they can to prevent energy independence, we're still getting there!!
That's why I say don't count out good old American ingenuity and innovation. :-)
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