Posted on 11/27/2014 10:13:07 AM PST by blam
Drilling had already been slowing down. You can make money pumping at $60, but you can’t make money drilling at $60.
Oil isn’t crashing, it is being manipulated by the Arabs to force out oil produced through fracking, which has a higher cost to produce than oil from the middle east.
I paid $2.41 per gallon of regular unleaded the other day in middle TN.
Diesel is 90 cents a gallon more.
I totally agree. Something has to give, and it’s not going to be pretty when it does.
That’s the thing about a house of cards. You can build it wide and tall, but at the end of the day you can’t live in it.
OPEC Policy Ensures U.S. Shale Crash, Russian Tycoon Says
"OPEC policy on crude production will ensure a crash in the U.S. shale industry, a Russian oil tycoon said."
Then there is this price for a bottle of water thing. Anyone complaining?
There are too many varieties of gasoline to draw a concise comparison to crude. Some refineries are locked out of what should be their natural market area because of specialty fuels...
I don’t know what state you live in, but here in New Jersey I filled up this morning for $2.599 per gallon. And I could have paid $2.559 across the street for a discount brand.
Bakken isn't going anywhere. It would remain to be used at some point in the future.
Good post.
Two questions if anyone wants to educate me:
1) what is causing this? Is it oil drilling in the US (North Dakota)?
2) gas prices are falling in US (it’s 2.36 where I live) is it also falling in countries where it is/was very expensive? (ie Europe)
The whole world is watching and don't forget the Saudi "folks" want to hurt "ISIL" even more than the Roosky's!!!
We have just seen the biggest refutation of Demonocrats since before FDR and elections can have far-reaching consequences worldwide!!!
Only the Repellican "leadership" are too dumb to grasp this. Even us Conservatives are more than a little slow to realize what the body politic is screaming at us (STOP OBAMA) because we're so numb from the constant thrashing and trashing we take from the MSM!!!
The free market ceased to exist the day when hussein and his criminal gang illegally seized power. There was a time, under Reagan and both Bushes, when the energy industry had pro-business types in government who understood the oil industry. But now the gyration of prices is being manipulated by the heavy hands of hussien, Soros, Buffet and the marxist muzzie overlords of the mideast. Things are very grim this Thanksgiving for business overall and the energy sector in particular.
Yes, indeed the fluctuations of the past did make sense and had market-based underpinnings. Since the hussien/holder/jarrett trio thugs have been in control, the free market has ceased. It's now a evil marxist model of manipulation at work and it crushes both the consumer and the producer.
I do not believe the shakeout will take very long. Horizontal wells have notoriously steep initial depletion curves, and generally flatten out within two years at about 20 to 25% of their IP. It won’t take a long moratorium on drilling to see a reduction in production from the newer wells. The question is one of if that decline in production will be sufficient to get the ball rolling again on the drilling end.
Low transportation prices are good for everyone. Look for food prices to begin to lower.
Pray America is waking
That's 100% true. But we're not in ordinary times. As the boss has pointed out in FReepathons, hussein has enacted a sweeping range of scorched earth policies. His embrace of big labor goons, skyrocketing taxes and the marxist economic policies means that the reduced costs for transport of goods to market will never happen. He seeks to line the pockets of Soros and the islamofascists. That's his overarching goal and he's doing so at the expense of both business and the everyday working person.
Paid $2.42/gal last night of regular unleaded. Gotta admit, it felt really nice.
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