Posted on 11/30/2014 6:03:03 PM PST by blam
Myles Udland
November 30, 2014
More than 50% lower.
That is how far Canadian billionaire Murray Edwards, chairman of Canadian Natural Resource, thinks oil prices can fall from here.
Speaking with Canadian business publication Financial Post, Edwards said, "Prices could spike down to $30, $40. It got down to $35 in 2008, for a very short period of time."
Edwards told Financial Post's Claudia Cattaneo that, "On a given day you can have market fluctuations where prices fluctuate far more than the underlying economic value of the unit," adding that if oil falls to $30 or $40 a barrel he doesn't expect it would stay that low.
(snip)
(Excerpt) Read more at businessinsider.com ...
Yup. Look for the enviro-weirds to start the "running out of oil" narrative. BTW, real Saudi cost of production? All in, amortizing everything: Under $5/bbl. Reserves? Many centuries.
Also BTW, Saudi Royals, about 4 tiers of them and their hangers-on, creaming billions off the top. Saudi welfare state: occasionally runs short of cash. Saudi Arabia is run by the House of Saud just as Tony Soprano ran New Jersey on TV. Every Royal has a crew and and a piece of all the commercial action in the country. There's a McDonald's Prince, a Mercedes Prince; etc. i.e., absolutely nothing happens in the KSA before the Prince in charge of that sector gets paid.
What are you talking about? It’s a fantastic boon for the economy (and it is happening despite Obama, not because of him).
Fracking is still profitable down to something like $40/barrel. OPEC is unlikely to take and sustain prices below that, but even if it did, they’d still lose out to American competition once prices rose again.
We had a massive economic boom through that time.
The energy boom has been fueling a lot of the economy that the government hasn’t. Cheaper gasoline will come at a cost.
Forget a subsidy. If the government wanted to put a tariff on imported crude that put a floor on the price and phased out as the price got higher, it would generate revenue and stimulate domestic production. Win/win, and as long as that price was not too high, consumers would at least be able to plan. Volatility is what bites the consumer (and small businesses) in the long run.
Could this be an more anti-American move, let me count the ways...
* A number of articles have been written about how many of the Fracking Firms are hiring a ton of our Veterans, could he do anything that is more wrong with hurting their chances of a good job.
* He doesn't just nix Texas, he nixes all the States also Fracking, PA, ND, OH, ( and more ) and the up and comers that can swing in the DNC Camp such as NC and keeps NY in the DNC camp as with a lower price they will never Frack in NY.
My only hope is their are productivity gains via Fracking up their technological sleeve ( such as waterless Fracking etc ) that will increase yield, and or reduce cost or environmental concerns and keep it competitive with the Saudi's.
I would bet on the entrepreneur's in this arena that would love to checkmate Lear Deeder and see him fail if he is truly trying to nix their efforts and industry regardless of the International Chess being played...
I remember reading about people who were buying gas for 99 cents a gallon when everyone was paying above 4 dollars. I don’t remember how they did it. The figure that sticks with me is that they paid something like ten thousand dollars for the right to buy ten thousand gallons at 99 cents a gallon. It’s definitely something worth looking into if you drive a lot.
Thanks for your reply. Point taken, certainly the oil remains in the ground, and another company can extract it, during a different point in the boom/bust cycle.
I hope this tactic backfires on OPEC, big time, but I have no doubt that the motivation is to mess with their competition.
Thanks for the reply. I certainly hope the U.S. oil industry beats OPEC at their own game!
Putin is in the same boat with his US $450 Billion military modernization program.
And the States raise their gasoline road taxes to make up the shortfall, leaving the price of as at $2.99 ...
Ok, then. When will I see it? When will i feel it? Economy is terrible except maybe in Texas and North Dakota. And, North Dakota is shutting down......
I am happy you are getting to visit your special friend. Drive carefully.
It’s not everything to the economy, but it is equivalent to a significant tax break to producers and consumers alike. Joe Average already has more money in his pocket because of it. Don’t you? Hasn’t the price of gas gone down for you?
Let’s not forget Ginger Rogers singing “We’re in the Money” in Pig Latin:
https://www.youtube.com/watch?v=UJOjTNuuEVw
It wouldn't take much, just enough to spook insurers out of covering tankers in and out of the Persian Gulf.
The Saudis can afford to give it away just long enough to kill the US domestic energy industry.
The democrats want us to be dependent on foreign energy.
You are correct.
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