Why is oil 95 bucks a bbl then?
Quick, give some more money to the Sierra Club or call in chits from the ObaMao adminisstration to surpress domestic production in the U.S.A. and Canada.
From a look at few years ago, most of the oil producers in the Middle East needed from about $85 to $95 dollars per barrel to break even.
You and thackney keep me well informed and I just love it when you guys just wipe the floor with all those "alternative energy" bufoons with your factual posts, pings and realistic comments!!!
Then BOBTHENAILER comes around and gives 'em GAS!!! Hoo boy!!! What a hoot!!!
What about the super top secret Halliburton pipeline in Afghanistan and the oil we are stealing from Iraq? How does that figure into this?
Don’t tell them this. But there is a brilliant strategic move OPEC could make that would SLOW the tidal wave of petroleum production they see coming. This is a secret....
If they were to significantly ramp up production and drive the price of a barrel of oil down to about $40/barrel, the shale development and several other processes would be too expensive to bring oil to market (at least for new ventures). They would have to wait out the market before driving it back up.
Here’s the crutch for them. They would have to accept a low ROI and potentially even some profit loss for a while to stave off the onslaught. They would have to compete (uh oh). But they do have the power right now to affect supply and demand (at least for a little while longer) to the extent that they can manipulate the futures markets.
Don’t worry, they would never dream of doing this.
How high will oil go, Comrade Bubba?!