Posted on 05/24/2017 11:12:01 AM PDT by Kaslin
Maybe the fly on the wall knows, because nothing was leaked to the New York Times or Washington Post, but one of the topics that may have come up in meetings between American and Saudi officials during President Trumps historic visit is the energy revolution unleashed by President Trump that is sure to make the Organization of Petroleum Exporting Countries an energy relic.
Through regulation repeal and executive orders and the changing of the guard at the Environmental Protection Energy, Trump has made fossil fuels great again with expanded shale oil and natural gas production for both domestic consumption and export leading the way. And thanks to the completion of the Keystone XL and Dakota Access pipelines, North American energy independence is soon to become reality.
As Investors Business Daily editorialized in 2013, the Saudis, among other OPEC members, have been freaking out about fracking, warning that it spelled doom for the Arab oil cartel:
Indicative of the panic rippling through the Organization of Petroleum Exporting Countries over the U.S.-led fracking boom, billionaire Saudi Prince Alwaleed bin Talal says his Gulf Arab kingdom needs to reduce its reliance on crude oil and diversify its revenues, lest the era of gold-plated toilets come to an end.In an open letter to his country's oil minister Ali al-Naimi and other government heads, published on Sunday via his Twitter account, Prince Alwaleed said demand for oil from OPEC member states was "in continuous decline" as a result of the technology that has unleashed vast deposits of oil and natural gas worldwide.
So concerned were OPEC ministers that they financed a Hollywood flick, Promised Land starring Matt Damon, which incorporated every falsehood about the safety of fracking and was intended to fuel its death by regulation:
(Excerpt) Read more at americanthinker.com ...
The Saudis are doing everything they can to keep us close to them. Personally I’d leave them behind in the dust.
https://www.wsj.com/articles/how-american-shale-drillers-flipped-opecs-script-1495618203
How American Shale Drillers Flipped OPECs Script
U.S. output has surged since production deal, leaving cartel with little choice but to extend cuts
By Lynn Cook
May 24, 2017 5:30 a.m. ET
OPECs back is against the wall and U.S. oil producers put it there.
When the cartel reached a landmark deal in November to curtail production to bolster crude prices, it was betting U.S. shale drillers would be too weak to step in and fill the void. It was wrong.
As it turns out for OPEC, competing against American shale oil really means competing against Wall Street and its financial engineeringa prospect that has bedeviled government-run oil companies from Saudi Arabia to Nigeria.
U.S. oil output has surged since the OPEC deal, and is now on pace to exceed 9.9 million barrels a day in 2018, a record, according to the U.S. Energy Information Administration. Hopes dashed, OPEC now has little choice but to extend the production cuts when the group meets in Vienna on Thursday in an attempt to ease the global oil glut.
snip
They could extend production cuts......Or...they could increase production and drive oil back down to $25/barrel.
But I suppose that also hurts them pretty badly. OPEC is really between a rock and a hard place.
But, peak oil?
They need high oil prices to fund their welfare state. IMO, that’s why the Saudis were so obsequious to Trump the other day. Payback’s a bitch.
“they financed a Hollywood flick, Promised Land starring Matt Damon”.
Just one more reason to not care for this guy.
But... Peak oil, peak oil....
beat me by 30 seconds :)
1) The Fed created 4.1 Trillion dollars over a 6 yr period, from nothingness. That’s 25% of US GDP from nothingness. Saudi Arabia has its own central bank too and can do the same thing, so don’t think $25 oil means anything all that much.
2) The EIA has been calling for record output for 3 yrs. Calling it for 2018 also means nothing.
3) Check out the profitability of the major frackers. Here:
https://www.google.com/finance?q=wll&ei=6dIlWZjdCJXUjAHukqq4CQ Whiting Petroleum, $4 loss per share
https://www.google.com/finance?q=NYSE%3AOAS&ei=7tIlWeDEMsf7jAGD_LTICg Oasis Petrleum, losing 89 cents a share
https://www.google.com/finance?q=clr&ei=GdMlWdD3B8Sy2Aar9Iv4BQ Continental Resources, Harold Hamm’s outfit, losing 50 cents a share
Don’t Believe Propaganda. Fracking is losing money hand over fist. Why/How do they continue? Borrowed money. The Fed is essentially printing oil, out of desperation.
There is no American magic. You have to pay to drill. It can be $10 million spent just to drill and frack a hole. The Saudis have been flowing oil from holes drilled 50 yrs ago, and they flow more from that hole than a typical shale well (Ghawar well flows 5000 barrels/day (and that’s after 50 yrs of it) and a Bakken well flows maybe 500 barrels per day after a year of flow. Shale wells die quickly.)
Don’t Believe Propaganda. Even if it’s American Conservative propaganda.
Shale is happening because the Fed is handing out low interest rate money and instructed lenders not to foreclose when payments were missed.
I read somewhere that the Saudis were leery of the reduction in US oil drilling over the past several decades. They figured that the US wanted them to burn their through Saudi oil reserves and then the US would start up our oil production.
Oh and btw, check out February’s latest Assay of Bakken oil. It’s now API 43 degrees. That’s very close to condensate.
IOW, it’s not oil. It’s “liquids”. Nearly no diesel or kerosene (jet fuel) in its constituent refinery yield.
You can find this info at Statoil’s assay page.
Peak oil.
There is decades worth of evidence which suggests that oil is replenished from deep within the earth’s mantle. But you see, if this fact were widely understood then the price of this “rare and finite” resource near its peak would be far less valuable. So you justify the absurdly high prices over the last 50 years by scaring the public (OPEC funding?) by saying, “We must conserve!” And, we’re running out of this precious, finite resource... so $200 a barrel is totally justified. What a set up.
Biggest scam ever.
US production falls (presently 9.4 million barrels/day, we burn 20 million barrels/day, and yes, you can wonder about the talk of exporting) because of geology.
There are no magical American rocks. It’s no different from anywhere else. It CAN go empty. Ask Illinois. Ask Pennsylvania. Ask California. All flowing a fraction of what they once did.
The US has no monopoly on going empty, either. Ask Scotland. Ask Indonesia. Ask Romania. All flowing a fraction of what they once did.
There Is No Magic. Oil is everything and it WILL get scarce, regardless of price.
1. USA expanding oil production thanks to fracking and even newer extraction technologies.
2. China looking seriously at importing oil from Russia, where much of its oil resources are still untapped.
3. Iran getting back into good graces with the world community and massively opening up their way-underutilized oil fields with Western technology. Especially with Iran being able to export it out through Bandar Abbas, which means no more long trips through the Persian Gulf for supertankers.
Okie Doke, you think oil wells are replenishing themselves from deep underground from these decades of evidence you claim. Then put your money where your ignorant mouth is. Go buy up some empty oil wells and get rich.
It Doesn’t Matter Where Oil Comes From. It exists only in certain types of rock. Those are not infinite. When they empty out, they stay that way.
Don’t you think over 100 yrs when an oil well stopped flowing people didn’t go back 20 yrs later and recheck it? This has been done 100s and 1000s of times. It Stays Empty. You think otherwise? Mortgage your house and put up or shut up.
The key point is they were a source of financing for the anti-fracking effort.
I agree and actually all my favorite actors and actresses (Yes I still use the term actresses) are all gone
hey man,
Sometimes i watch the Johnny Carson show commercials.
Still funnier than anything you’ll see today.
Getting old.
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