Posted on 05/10/2017 8:38:29 AM PDT by bananaman22
OPEC and its cartel of friends must be sweating condensates in advance of their May 25th meeting.
The oil price war, triggered almost three years ago, is far from over. Calling a truce with production cuts has been an ineffective strategy. In fact, it’s been a feeble strategy and nobody in the business should rely on its extension to be effective.
Price wars are often triggered by the arrival of a new entrant into an entrenched market clique.
American light tight oil began flowing into petroleum supply chains in 2010. By 2014, output from plays like the Bakken, Eagle Ford and Permian had penetrated 4 percent of the world’s oil market, antagonizing starched interests in the industry.
(Excerpt) Read more at oilprice.com ...
One of the better reads from oilprice.com. I find most far less informative.
Free markets and Capitalism works every time it is tried.
Despite California governmental meddling, we are paying significantly less (~30%) for fuel in 2017 than in 2014.
Thanks to American tight oil contributing 4% to the global oil supply.
That’s how inelastic markets work.
The worst part is that if the adiabatic theory of oil being created is proven true, the very idea of peak oil will be rendered obsolete.
Adiabatic?
Or “abiotic”?
Weren’t these people trying to sell “peak oil” propaganda a while ago? Are they a real news source?
Remember how Sarah Palin was mocked for drill baby drill? We could have lowered prices way earlier if we expanded drilling in Alaska, on other federal land and off shore. The CEO of jet blue also had a proposal around the time oil first broke $100, which was to subsidize coal to liquid fuel. And he explained that only a small increase in supply was necessary to crash the oil bubble.
I know it won’t happen but imagine if the people of Venezuela throw out the commies and embrace capitalism. The gulf states would be toast.
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