Posted on 10/29/2014 4:57:19 AM PDT by thackney
No worries, if OPEC takes oil below $60, Obama will write an executive order to raise the gas tax.
Texas oilmen can take care of themselves. Don’t bet on OPEC in this contest.
Never thought of it until now but ... what a great place to have a disaster ... or a take-over.
This is economic, not a physical invasion.
Well, it’s not “free”; frankly, I hope that things settle to a price that allows conservation and exploration to continue.
Social-Economics, like that in the EU, is what will keep American Oil in production - at some point the local jobs even in globalization are not exported but brought home in order that money can be kept inside the country. OPEC welcomes oil from new sources, because they could be investing heavily rather than competing. This is the Epic Fail of Opec in that they tried to corner the market(s), rather than be an investment player in all of them.
“No worries, if OPEC takes oil below $60, Obama will write an executive order to raise the gas tax.”
Actually, I’d be in FAVOR of it, but only if:
1. Some was spent on replenishing and expanding the oil reserve.
2. Every remaining nickel went (efficiently) went into roads and infrastructure.
Too bad that the government has proven itself to be absolutely incapable of spending money wisely.
That might be true of some of OPEC, but the player that matters, Saudi Arabia, has been building one of the largest refinery/petrochemcial complexes in the world for many years in Jubail.
How big do you think it needs to be? Size related to overseas imports? How many days supply from OPEC?
http://www.aei.org/publication/petropreneur-harold-hamm-summarizes-profound-implications-great-american-shale-revolution/
The U.S. produces more oil than Saudi Arabia
- - - - - -
No. US oil production is up to 8.5 MMBPD.
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPUS2&f=M
Saudi Arabia produces 9.8 MMBPD.
http://www.eia.gov/countries/country-data.cfm?fips=SA
But when it comes to affecting global market price, the main difference is:
We import 7~7.5 MMBPD of crude oil.
http://www.eia.gov/dnav/pet/pet_move_impcus_a2_nus_epc0_im0_mbblpd_m.htm
Saudi Arabia is exporting 8~8.8 MMBPD.
There’s more shale than they’ve got of easy, cheap oil. Let’s have an economic boom on their cheap oil, and shut in the shale production. Then we’ll be the new oil kings!
shut in the shale production. Then we’ll be the new oil kings!
- - - - -
Something wrong with that concept....
” Every remaining nickel went (efficiently) went into roads and infrastructure.”
The pensions of road construction workers maybe.
The cheaper the better for the economy.
Well, there was some sarcasm involved.
It’s just that I don’t think the Saudis are willing to run flat out for long enough to make a real long-term difference. I don’t think they can, and cheap oil would wreck their economies while benefiting industrial ones like ours, the Chinese, and the Japanese.
I don’t think the Saudis are willing to run flat out for long enough to make a real long-term difference. I don’t think they can,
- - - - -
We agree. But there may be some short-term (1~2 year) fallout that will slow down US investment into shale production. Slow it down, but it will still grow, just at a slower pace. That would not be all bad.
I wouldn’t be surprised if there was some fedgov action taken against the frackers on behalf of OPEC.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.