Posted on 01/01/2015 7:50:34 AM PST by Kaslin
Gasoline prices are on the verge of crashing down to below $2 a gallon. The price of oil may dip below $50 a barrel.
Even with renewed demand from a global economic resurgence, energy prices continue to fall. The U.S. has suddenly become the world's largest combined producer of oil and natural gas.
That fact -- along with a desire to weaken hostile Iran and Russia -- has prompted the oil-rich Gulf sheikdoms to keep pumping oil even as the price falls. In their game of petro-chicken, the desperate sheiks hope that either their poorer enemies will run out of cash, or that fracking in the U.S. will become unprofitable and cease.
Everyone seems to have forgotten about "peak oil" -- the catchphrase of the new millennium.
The world in general, and the United States in particular, supposedly had already burned more oil than was left under the Earth. Under President Barack Obama, gasoline prices had soared. When he entered office in January 2009, gas prices averaged around $1.60 per gallon. Four years later, by spring of 2013, gas prices had climbed beyond $3.50 a gallon.
(Excerpt) Read more at townhall.com ...
The Russians and Iranians have been problems for the Saudis for years. The new enemy is American oil and it hurts Saudi profits more than Russia and Iran. It’s American oil the Saudis are targeting.
Best case:
Iran and Saudi Arabia fight their proxy Shia-Sunni war for a long time. The will need to pump lots of oil to pay for this and spend all their oil money on America weapons...
Everyone is focusing on the effect falling oil prices are having on Russia. The Russians have suffered and survived worse degradations. The real story is in Saudi Arabia. The Saudis have huge commitments to subsidize destitute Sunni Egypt. It is estimated that it is costing the Saudis $8-10 billion per month the subsidize Egypt and other critical Sunni entities. Without the subsidies the price of food and other essentials would skyrocket and the chaos would be unmanageable. The “Arab Spring” would then finally come to Arabia and sweep the Saudi royals into the proverbial dustbin of history. So far the French have refused to give the Saudis any discounts on the grain they are purchasing to feed Egypt.
Already at $1.95 in North Texas.
There never was any such a thing as “peak oil” - the earth shall continue to have petroleum pumped out of its crust a millennium from now. Some oil is always being regenerated at the Mohorovicic Discontinuity, where untold number of chemical and physical reactions proceed unabated, as they have since the planet cooled enough to form a crust. Some small amount of oil MAY have been produced through the decomposition of dinosaur remains, through a process known as Thermal Depolymerization.
Thermal depolymerization occurs in nature when an accumulated biomass is heated and pressurized in the earth’s crust over millions of years. This biomass, also known as kerogen, is believed to react with clay mineral enzymes at temperatures below 200 degrees C (392 degrees F), which produces oil. Actually the process only takes a few hours once the optimal conditions are reached, and this process can be used with all kinds of organic waste, not just dead dinosaurs. It can be and has been applied on an industrial basis, though the current cost to produce the crude oil is higher than the current market price of crude.
The cheapest price for gas here is $1.91
I don’t think obama will stand by and let islamists suffer because of low oil prices, he will do something, not sure what maybe use the EPA to shut down the industry or Ex Order to cease and desist; whatever he will not let America prosper at the expense of islam, whatever he decides to do it is apparent at this time; no one will stop him, the republicans if they don’t throw out boehner will be but a flock of meandering sheep.
I remember when the left used the lame excuse that it would take 20 years to get a drop of oil into the pipe lines
in the oil situation, Obama is irrelevant
he may pretend to act but he has no power to effect the world wide oil economy change
His propaganda will pretend he is in control
Oil prices since 2008 have been based on a conscious fraud: the threat of an Iranian blockade in the Straits of Hormuz.
If everyone would recall, that was the excuse used for the initial run-up.
Once the price was there...hard to pull it back. Everyone in the biz likes pulling in the cash.
But it wasn’t hard to see that the price was based on BS, not supply fundamentals. But that can only happen for so long. Like until the ocean of supply overwhelms the lie.
Oil is merely finding its natural price.
You assume Obama knows what his administration is doing. Obama himself seems to live in a short time frame filled with who or what he wants to destroy at any time, *crew the consequences. How else can you explain not stopping ISIS when they still could've been disintegrated? Of encouraging and enabling out of control thuggery in US cities? Of flooding the US with hordes of invaders?
Obama seems to have just one agenda....Obama.
JMHO
“So far the French have refused to give the Saudis any discounts on the grain they are purchasing to feed Egypt.”
How much grain do the frogs grow? I didn’t think they could grow enough for themselves, much less export anything.
I live @ 30 miles SW of Chicago, so I was really surprised yesterday when I saw gas for $1.79/gallon. That was about 3 miles from my house.
The gas station down the street from my house was still $2.15.
There's a coming price war I think in gasoline. I've been watching the prices drop on average 2-3 cents / day for the last two weeks or so.
I paid $1.85 last fill-up (that was with a dime discount from Kroger)
N.W of Indy in Crawfordsville the lowest price was $1.52 yesterday.
I think we may see $1.20 gas soon.
France is the world’s third largest exporter of wheat. It exports over 18,000 metric tons yearly. Good percentage is exported to Egypt and North Africa. Extremely important component of the French economy.
$1.78 in southern Michigan.
OK, I thought their only export was cheese and whine.
Yeah....and when global cooling kicks in and grain production drops like a rock.
Remember...Obama and the dims lie about everything ...including global warming.
Two can play that game.
Simply impose a $40/bbl tariff on imported crude.
Hell, that should have been done 40yrs ago.
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