Posted on 04/24/2018 11:09:46 AM PDT by Berlin_Freeper
As OPEC’s efforts to balance the oil market bear fruit, U.S. producers are reaping the benefits - and flooding Europe with a record amount of crude.
(Excerpt) Read more at reuters.com ...
Thus illustrating the absurdity of thinking that the Russians really wanted Trump to be president.
Saw this coming back in 2012 - 2014. My timing was too early else I would be the richest member in my family history. The Obama Administration wouldn’t sign off on an export application from my group.
The Bakken has 10 X the proven reserves of Saudi Arabia. The Permian Basin is producing an overflow of oil never before seen in its history.
Refineries are coming back online so quickly. Just a few years they were mothballed, disassembled, sold and shipped overseas. They are so valuable because they are made to US standards and are built to last hundreds of years. American engineering truly had a golden age that was set back for decades by politics. Now with President Trump, it’s all coming back. The young people of today are so fortunate.
On top of this, the USA has so much natural gas that comes out with the oil pumping that it has to be flared (burned) off, wasted.
It’ a whole different world now that most thought impossible just a few short years ago.
See, Collusion! There...oh, wait.
Yeah, then why is the price of gas going up?
US producers are eporting more where the price is higher.
President Trump has addressed this issue and says it’s not good. I believe he is going to release strategic oil reserves on the US market to get the price down.
I can’ understand that, but you would think OPEC would counter and raise production. There should be a world overflow of oil, OTOH, it’s helping our balance of trade.
Good news
Black Gold Triumphs
There is no need to make actions to help our balance of trade.
Actions must be made to ensure a profit
I don’t agree with that article, USA is still importing over 8 million barrels a day, how can we be flooding anyone with oil when we don’t have enough for our own use.
...” we don’t have enough for our own use”...
Who told you that?
Maybe the oil that we're importing was already contracted and paid for; hopefully, at a much lower rate than the oil that we are currently selling. A profit off buying low and selling high would be nice ...
Reserves
And I believe explorers discovered 80 billion barrels of oil off the coast of Bahrain and lots of natural gas too!
Part or perhaps all of the reason is because there are existing contracts for the purchase of foreign oil between American entities and foreign entities.
It is more profitable to fulfill the terms of the contract than to pay penalties for breaking the contract
It is amazing how few folks really understand economics. How could anyone be shocked that when two competitors create a void in the market, another competitor will be happy to fill the void???? Once the Russians and OPEC realize their gimmick to “fix” the market has backfired on them, they will start producing again and markets will stabilize. Further, production capacity and refining capacity are two different things and the former is far more elastic than the latter.
Logistics. Overall we are still a net importer but that can/will change very quickly. SA can no longer control us.
It’ a whole different world now that most thought impossible just a few short MONTHS ago!...................fixed it!................
The only thing they could mean is that with the extra US production that is leaving less to export to America and the extra is flooding the market.
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