Posted on 12/17/2014 10:05:19 AM PST by blam
Opposing protections for American jobs is the libertarian view which doesn’t work.
Embracing the conservative view to protect American jobs always works.
You can stop shaking your head now unless you want to see the Saudis continue to lower the price of oil in order to demolish US oil producers.
Once again you’re present a false face which is not surprising as it permeates all of what you do.
A popular bumper sticker in the oil belt after a boom/bust:
"Please, Lord, let there be one more oil boom.
I promise not to p!$$ it away this time."
Saudi cost of production per barrel? Probably somewhere in the single digits.
When? Where?
The market is in charge...and the geopolitical situation of which you speak argues for lower prices, not higher.
They refused to cut production which resulted in oil prices collapsing. It wasn’t but a few months ago that Brent Crude was priced at $109.
If you’ve been following Prince Alwaleed’s comments in the financial media for the past few years, you would know that he’s angry and upset about the emerging US oil production that has seen WTI fall from $95 to $55 and flood the US Market with domestic production. At one point Alwaleed said that US Fracking posed a fatal threat to the Saudi Kingdom.
You can take it to the bank that the Saudis and their OPEC followers are going to pull out all stops to drive the emerging US domestic oil production out of business.
It costs on average $35 to produce oil in the US; that’s the average break-even price. It costs the Saudis far less. They have the competitive advantage. We can level the playing field and save American jobs and industry by putting a price floor on imports so that domestic producers won’t be put out of business in a price war waged by the Saudis. $35 oil is still great for Americans and still allows the Saudis to sell into US oil markets.
It wouldn't work, and the industry isn't asking for it...why are you ignoring this?
The industry will be fine, this is nothing new...and US production will continue to grow.
OPEC will not cut production...when countries such as Iran and Venezuela talk about production cuts, they mean the Saudis. I suspect the Saudis would have to cut 3MB/D to affect the market, and that would be temporary, at best...non-OPEC production would soon replace it. That's a third of their production. What then?
They recognize it's in their best interests to keep pumping the oil.
Yada Yada Yada, Your post is without any information that agrees with the reports from the financial press and with reports from real players in the oil trade.
OPEC has met in meetings and has been led by the Saudis to agree to not cut production. Those decisions precipitated a fall in the price of oil and the lower price of oil has already driven some drillers out of business and forced pipeline projects to be cancelled, all this backed by reports in the financial press and in the field; end of discussion.
Agree? That isn't a good description of OPEC meeting. It takes a unanimous vote to cut production. Even though majority want a cut, it won't happen without all.
As Venezuelan Foreign Minister Rafael Ramirez urged fellow OPEC members to cut oil production at one point during last week’s three-hour meeting in Vienna, the split in the group quickly became clear.
Eight countries -- including those from Angola and Nigeria, which are, like Venezuela, among the hardest hit by the five-month rout in crude prices -- embraced a reduction, according to five people briefed on the meeting. Absent from that list, though, was the most important man in the room, Saudi Arabian Oil Minister Ali Al-Naimi, who led a group of four Persian Gulf nations in voicing dissent, the people said.
And with that, the push for a cut, which would require unanimous backing, was shot down, leaving OPEC’s daily output target at 30 million barrels and triggering a 10 percent collapse in prices by the next day. The disagreement cements the formation of two camps that had been brewing for weeks within OPEC: the financially strapped nations pleading for a cut to trim the supply glut and boost prices, and the fiscal powerhouses willing to withstand lower prices in a bid to get U.S. shale drillers to curb their expansion.
- - - - - - - -
Venezuela's representative to the Organisation of Petroleum Exporting Countries (Opec), Rafael Ramirez, stormed out of the secretariat in Vienna after his proposal to make deep cuts was rejected by Opec kingpins Saudi Arabia and a clutch of Gulf Arab producers.
What will I believe, them or my lying eyes?
Again...OPEC will not cut production...Saudi is the swing producer. Over the next 10 years the Saudis would have to effectively eliminate their production, and that will not happen.
Falling prices have the effect of crippling Iran, which is a Saudi foreign policy bonus.
They have, for the time being, lost the ability to control the market.
If these so-called 'experts' cannot see this, then they are missing the forest for the trees.
Very close to I-5 exit 125.
Go to this website http://www.gasbuddy.com/ and put in ‘Lakewood, WA’ and you’ll see.
The price is now $2.24/gal.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.