Posted on 10/19/2014 6:48:32 PM PDT by SeekAndFind
The collapse in oil prices is already a major cause of concern for countries heavily reliant on exports of the commodity. For some, it could be a matter of avoiding a severe recession.
Here's why: For governments in oil-exporting countries to meet their spending commitments they need oil to remain above a certain price. With oil prices under $87 a barrel, countries that rely on high oil prices, including Venezuela, Russia, and Saudi Arabia, may have a reason to be concerned.
This chart shows the price per barrel that the six most exposed countries need to meet their national budgets. Remember, the price Friday is a piffling $87.
(Excerpt) Read more at businessinsider.com ...
Hmmmmm, nope! None of them are on my list of favorite countries.
I saw gas for $2.699/gal today. It makes Obama sad that we aren’t sending more money to Muslim countries who hate us.
Well...My tears are flowing like rain!
It’ll hurt the US also. Oil/gas is about the only positive in the economy. If oil drops to a certain level, drilling here in the Bakken will cease, I’m afraid.
If the purported fusion breakthrough that Lockheed is touting turns out to be real then these countries are DOOMED soon anyway.
There would be a mad rush to pump and sell oil while it had value.
http://www.popsci.com/article/science/lockheeds-fusion-promise-what-we-know-so-far
Obama and the left have fought drilling and fracking every step of the way. It’s the only are that is helping our economy right now. They’re too stupid to see that.
What’s the fiscal break-even price for oil in the USA?
Watch Obama try to fix it for ‘em.
Good question.
Won’t the drillers know?
“Obama and the left have fought drilling and fracking every step of the way. It’s the only are that is helping our economy right now. They’re too stupid to see that”
No they’re not! Sad but this is exactly what they want - for the USA to be forced to buy oil from the ME~!! Disgusting. Even W wouldn’t drill in Anwar, etc.
It won’t go to $2/gallon. We get nothing out of it.
I’m sure that Saudi Arabia has substantial financial asset holdings that it can rely upon in the short time to cover any “current accounts” deficits. Long term, low oil prices could even be a problem even for the Saudis.
I hear our break even is $67 a barrel.
If you care about energy independence, and the permanent end of the Energy Crisis, you probably have to prop up the price above where the Saudis can drive it down if they chose.‘Course
If the purported fusion breakthrough that Lockheed is touting turns out to be real then these countries are DOOMED soon anyway.There would be a mad rush to pump and sell oil while it had value. - Bobalu
practical fusion power would blow up the Energy Crisis real good.
You are correct. Even though technological advances have reduced the cost of fracking, domestic oil producers need a stable price around $80-$90 per barrel to make a profit. Anything below that and production will fall. And the price will go back up. And so will production...
Yeah, around that figure. At least the oil isn’t going anywhere if drilling stops. The prices are bound to go back up again at some point. I would caution those who are celebrating the lower pump prices that demand will surpass supply again and will cause possibly much more inflated prices than they are now, for a short while at least.
It’s such a shame that Russia and Venezuela and those Middle East nations of tolerance and diversity would be screwed if oil prices remain where they are.
Drill baby, drill! Until it’s not economic to do so anymore. Lower gas prices are great for an economy based on fossil fuels.
Yep, bad for them and good for me personally, and most of us, that is a win.
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