Time for a 40% tariff on Middle Eastern oil!
Yeah, ok. The whole reason to find more oil is to bring down prices! And to make us independent of course.
The high-falutin Wall Street types just LOVE high oil prices.
Your opinion?
Maybe ISIS can disable some ME oil terminals....(say Saudi Arabia and Iran).
The Saudis appear to be trying to crash the shaleoil industry. They cut production and raised prices to Europe and Asia, but cut prices to the US.
Tell me our government is going to slap somebody.
Why we put up with this blatant attempt to destroy our industry is beyond me and for those who faciliate these actions in our country, beyond contempt.
Why are we importing oil from Muslims who hate the U.S.?
Are they admitting that the free market still works and that supply and demand are self correcting forces?
Price goes down below cost of fracking, fracking slows down, supply shrinks.
Supply shrinks, prices go up, fracking becomes economically feasable again.
Nothing new here. OPEC manipulated supplies and prices, several times since its inception.
Sometimes, their manipulation were in part, to discourage development of alternate sources.
Example: During Carter then Reagan, the US funded several pilot programs, for oil extraction from oil sands/tar sands. OPEC brought prices down, and eventually those projects were ended.
Canada on the other hand, kept their oil sands/tar sands programs going, with private and public funds, and they are now established and profitable with out govt. assistance.
This has never happened before!!!
why can’t we double our reserves at these prices. Build more storage facilities. What we have stored is based on archaic “use estimates.
They will pump it til it is unprofitable and then hang around that number. Lower fuel prices stimulates everything including fuel prices.
Pray America wakes
LOL. Nope, the oil and gas guys I know in Dallas and Houston have factored a price drop into their business models. Here’s the take-away: US oil and gas from fracking is more economical than ME oil and gas on a production cost basis. To be blunt, it is not even close.
The US players are looking to break the ME’s oil producers’ spines and have planned accordingly. They have squirreled away large fortunes AND diversified their holdings into tech, hence the (largely unnoticed if you are not here) massive tech boom going on in Dallas right now.
Get out the popcorn!!!
Not too smart. Seems like they are in a classic price trap.
“Oil” does NOT equal purely energy. If the industry suddenly stopped producing you have no idea how high prices (across the board, on everything) would actually go. “Oil” is refined into many, MANY different forms for countless uses from (yes, fuel) what goes into our tanks, fertilizers, the saran wrap in your kitchen drawer to makeup sold in department stores. There are not very many products or consumables “out there” that do not use some form of oil. (It is kind of like it was put here for our use; creepy huh?)
Low prices will increase consumption and demand. Prices seesaw back and forth as capacity and demand try to catch up to one another.
It’s called The Market. (As I’m sure you and most FReepers understand.) The weak and marginal plays and players will get weeded out and some sort of equilibrium will be established until some other influence enters into the equation, like a relaxation on exports. Exposure to international pricing signals will raise prices and encourage more production.
Good. The USA engineers are forcing Mid East pirates to play. Charge to much we ramp up the fracking.
I wonder how much the Saudis pay them to write that dribble.
Thank you for sharing, Morgan Stanley and Goldman Sachs.
Now go to hell.
An article I read yesterday pegged the breakeven about $10 lower than the mid-70 dollar figure from Morgan-Stanley. I think the oil companies have got longer staying power than M-S is allowing for unless they’ve borrowed at too high of a rate, as noted by one poster. This will be a factor that separates the buyers from the sellers.
Is USA getting more oil from USA than Saudi Arabia now? Does anyone know?