Posted on 01/06/2015 2:45:41 PM PST by Lorianne
Oil's dramatic fall in price will have serious effects on revenues and spending in the sector, according to some industry analysts, with one investment firm predicting a sector-wide "recession" that will last for several years.
Both U.S. crude and Brent futures fell to fresh 5½-year lows on Tuesday, with the former slipping below $48 at one stage. Weak global demand and booming U.S. oil production are seen as the key reasons behind the price plunge, as well as OPEC's (Organization of the Petroleum Exporting Countries) reluctance to cut its output.
This sector slump will lead to a fight to the death for oil firms, according to analysts at Bernstein Research. The research firm likened the current environment to the Hollywood movie "The Hunger Games", which portrays a dystopian post-apocalyptic future where the main protagonists battle each other to survive.
(Excerpt) Read more at cnbc.com ...
If I had to have paid $4/gallon, I wouldn't have gotten the wash. Interesting how things work out.
On the other hand, my nephew who sells drilling mud to new rigs in the Eagle Ford formation will probably be getting laid off soon, as at this price there isn’t much new drilling going on.
He does not think it’s interesting how things work out.
One has to remember the natural gas saga.
At one point gas was selling for $14 + per million cubic feet. Producers thought they could print money until 2008.
Now natural gas is selling for around $3. Yet the industry thrives because it has become more of a manufacturing business model. It anticipates a price, locked in with derivatives; then drills just enough new holes, or enhances existing holes to meet commitments accurately anticipating costs. No longer is it speculating.
Oil has just made this transition. More difficult since foreign producing entities less predictable.
Bad news for him, certainly, and good news for the country as a whole.
The frackers are overwhelming Baraq Obama’s failed economic plan.
Some MSM supporters of the Caliph are even trying to give Baraq credit for this.
this is likely the beginning of the end of the current world’s economic system. The NWO and the one world currency will be presented to save the day and a NWO puke will be in the WH to make sure the American people don’t mess up their plan. Per daddy Bush saying that they (NWO) can not be stopped of course.
Oil went below $50.00 a barrel and gas went up $.50 a gallon here in Louisville (from $1.85 to $2.35).
Yes, it hurts the oil producing sector. My brother-in-law is a machinist and makes drill heads for the oil industry here in Oklahoma. There is no solution that will make everybody happy.
Yep, the Bushes are knee deep in the destruction of this government.
However, there may be increased demand for natural gas for another reason: it can be used to make motor fuels like gasoline and diesel fuel. New catalytic crackers are now in development that could make the gas to liquid (GTL) conversion really cheap, and that could mean North America’s gigantic gas reserves could be used to make clean-burning forms of gasoline and diesel fuel at very low prices.
We're through the looking glass here, people.
You're not a believer. This thread should have been closed to all non-believers.
The world's stock market must collapse first - and that may be on the way very soon. What we have seen in the markets the last few years is simply QE madness. The "transfer" of $4 Trillion in fake money. This, along with our incredible debt, entitlements, and decades of financial irresponsibly will have a terrible day of reckoning.
Then it will become horribly real - and the world will look for a "savior." The "solution" will become the Antichrist world economic system that will enslave all of humanity.
Meanwhile, in Indiana, Speedway/Marathon, controlling 80% of the market here, pushed through a $0.56 gas price INCREASE this week.
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