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To: jonrick46

The US doesn’t, but the whole rest of the world does. Saudi stability is a bit important. And the Persian Gulf too.


54 posted on 07/20/2023 2:37:55 AM PDT by buwaya (Strategic imperatives )
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To: buwaya; jonrick46; marcusmaximus; Chad C. Mulligan; MalPearce

I found this thread while search for a highlighted piece covering the current adventures of Ukraine troops in Russian Kursk Oblast. I only realized after reading a number of comments that this was an old thread. However, it has curreent issues included.; MalPearcee

i have felt the need to point out elsewhere that low oil prices are not always a good thing. I loved those $2 gas prices during Trump’s presidency. However, at the time I did not realize they were overlowing the oil market to such an extent that at one point people were being PAID to take oil, rather than having to buy it. The giant storage hub in Cushing, Oklahoma was full, and oil ships were full. Then the world price of oil dropped well below $80 a barrel. Since the oversupply problem was added to by reduction in travel due to Covid, producers with high costs began to stop pumping, and then shut down wells, especially in fraking sites like North Dakota. These types of producers are careful in restarting their old sites or drilling new ones until world prices seem more stable. The current situation with Russia does not suggest stability. There are many existing leases that have not yet been made productive while drillers await greater stability in production costs. I suspect we will not see prices in the $2 range again unless electric cars become a much bigger part of the driving market. I am now finding gas in a range between $3.00 and $3:50 on the east coast. I suspect this may become the new normal no matter who is elected. High enough to sustain production profits, and low enough to not be excessively burdonsome to consumers.


67 posted on 08/08/2024 1:25:53 PM PDT by gleeaikin ( Question authority as you provide links;)
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