This is good. This is really good.
Domestically, this is an across the board benefit, it helps consumers, businesses, and the ultimate cost of nearly all goods and services produced, unlike measures out of DC that tend to be “targeted” to one class or the other.
I’m hearing that most of the shale oil plays in the US can survive above $50 per barrel, so the downside is possibly not as bad as once thought.
This is good for now, but it is a massively destabilizing force for geopolitics.
The house of Saud is on the edge already, and Russia is gearing up their military. Cut off their #1 source of funding and they will make a move.
Not saying we should stop production, but there was a reason Ike cut the deals he did back in the 50’s.
If you consider economic warfare by Sunni muslim states against the United States, then it’s good, I guess.
They are dumping oil at lower than the cost of production to harm US domestic production.
groceries are still high, probably because of the de-valued dollar rather than energy costs
Charles Payne of Fox Business Network had a column at Townhall.com a couple of days ago; according to his info, here are the break-even points for various U.S. oilfields:
Drilling Region Breakeven Begins
Permian Basin $75
Bakken $75
Eagle Ford $65
Mississippi Lime $83
Texas Panhandle $81
Niobrara $78
Scoop $91
Tuscaloosa Marine $86
If his data is correct, the current price of crude is already below the profit point for most major U.S. fields. The House of Saud won’t rest until lots of American wells are idled.
On the other hand, all it takes is a new global crises to send prices spiking again. Long term, U.S. and Canadian shale oil represent a safe, secure and almost limitless source of crude and the Saudis know it. Their days of controlling the world oil market are coming to an end. They can’t afford oil at $40 a barrel indefinitely.