Posted on 03/09/2017 8:36:00 AM PST by bananaman22
In a rather unconventional warning, Continental Resources chief executive Harold Hamm said on Wednesday that should the U.S. oil industry embark on another spending spree, it could “kill” the market.
Speaking at the CERAWeek conference in Houston – one of the largest gatherings of oil executives and ministers, including this year Saudi Arabia’s oil minister Khalid Al-Falih – Hamm said that U.S. crude oil output “could go pretty high”.
But Hamm was quick to add, as quoted by Bloomberg:
“But it’s going to have to be done in a measured way, or else we kill the market.”
(Excerpt) Read more at oilprice.com ...
That’s the point. Who do we damage? Spreaders of radical Islam like Saudi Arabia and Iran; teetering socialist regimes like Venezuela, etc.
Sounds like a good thing.
[“But it’s going to have to be done in a measured way, or else we kill the market.”]
Lower oil prices will help MAGA. Apparently they don’t want to miss out on gouging vacationing AMERICANS at the gas pump.
The only thing it’s going to destroy is OPEC.
The upside is we finally become energy independent. We tell Saudi to go eff themselves!
I know lower oil prices help my economy. Seeing as the American economy is about 2/3 consumer spending...lower oil prices would have to be a plus.
Drill Baby, Drill!
But make it better for the rest of us. I believe Hamm set the record for a divorce settlement.
Anyone that thinks OPEC doesn’t exist to hurt us is naive. I say starve the beast. The Saudis kept the spigots running but they were rewarded for their U.S. friendship.
It does kill the market for $80-$100/barrel crude oil, that is for sure.
But if the technology evolves to the point that crude oil can be produced profitably for less than $50/barrel (and we may already be at the stage), then the older methods of extraction are going to be bid out of the market, unless they, too, can streamline and update their technology to compete.
And the more that natural gas can displace petroleum as a fuel source, the longer the prices will be constrained on crude oil.
That elusive dream of the “social justice warriors”, that somehow solar power will magically replace all “fossil fuels”, remains just that, an elusive dream. We shall have Thorium-fueled Molten Salt nuclear reactors, or even fusion power generation, long before solar becomes as reliable as “fossil fuel” power generation today.
Supply and demand fluctuate. Prices fluctuate. Profits fluctuate.
So nu?
I’ve lived through at least 8 oil boom/bust cycles. For some reason, journalists and the industry seem compelled to act as if either part of the cycle has never happened before and couldn’t have been expected to happen this time.
I agree.
On top of our majority imports of petrol being Canada, making the final shafts to the Saudis would be a good thing.
I want to see the entire Saudi royal family subjected to Sharia law.
Refining fissile material from other sources sounds doable. But fusion? The absurd amount of pressure and heat guarantee that unless it is going on from a star, it is a net loss of energy. Maybe there could be a way to catalyze fusion to take less energy, but until then, figuring out how to do solar beamed from geosynchronous orbit is the best fusion technology out there.
I really dislike these scare pieces.
The only way to destroy a market is to replace the technology of the market. In this case, it would require the replacement of the entire oil / petro chemical market - not going to happen.
What DOES happen is that the PLAYERS in a market can get destroyed by having an inverted cost to profit ratio. Generally speaking, the most inefficient players, those with the worst cost to profit ratios, will die first due to the drain on the capital and reserves. When those players get stripped out of the market, there is lower demand and the prices point will stabilize, at least temporarily.
True but we are making progress with fusion. http://www.livescience.com/43318-fusion-energy-reaches-milestone.html
There are several milestones along the road and this should only be interpreted as one of the first Q > 1 achievements. Many other achievements are required.
Just another 30 years or so .../joke
Oil price just dipped back under $50.
Bottom Line: “the head of the International Energy Agency (IEA), Fatih Birol, told Bloomberg:
“We are witnessing the start of a second wave of U.S. supply growth.””
Bad news for the Saudi budget, and the future funding prospects for global jihad. Good news for the USA.
For my family and I, if the cost of regular unleaded stayed forever between $1.74.9 & $2.24.9/gallon, we’d be happy.
***** Just another 30 years or so .../joke *****
BTT
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