Posted on 12/16/2014 7:55:22 AM PST by Kaslin
It is the commodity which our USD is tied to. For many years. So watch with “interest” LOL. As the ruble fades and the chinee debt grows, our debt and theirs. What a wonderful way to manipulate the good American people and leave them hanging out to dry. Get off the grid.
The drop will create a lot of disposable income for US consumers. It will also relieve a lot of economic pain for many. It will boost employment some.
The economic activity associated with fracking and pumping our own oil is good for the economy.
More disposable dollars will also help the economy, but it’s unlikely to alleviate the main fundamental flaw in our economy.
A lot of those freed up dollars will go to buy cheap Chinese imports as opposed to foriegn oil imports. Thus those dollars will still be funding the build up of our competitors and ideological opponents. And could accelerate the offshoring and sell out of American firms.
Until we restore the import tariffs and bring manufacturing back to the US, we will remain on the course of weakening the U.S. until our labor costs are competitive with third world countries.
No, it's the reverse. Oil was somewhat tied to the USD. Just like the Chinese yuan was somewhat tied to the USD.
If the dollar was tied to oil, the price of oil wouldn't have fluctuated through the years. It would be a set price.
And I'm sure as soon as a viable way of getting off the grid is available we all will.
I am not complaining about the falling gas prices and think they need to go much lower
Its simple really.
OPEC is dumping oil on the market to destroy newly created oil sources in North America. The Tar sands in Canada cannot work when oil falls below $50 a barrel, the production costs are too high.So if OPEC can keep dumping for 2 years, many new North American oil sources will be forced to close, and pipeline construction will be abandoned.
Secondly the Obama administration is gleefully celebrating the OPEC support it is getting, because it spells the end of pipeline controversy and the end of many new oil exploration oil finds. THe economy will boom in the USA for two years
, supporting the meme that Obama fixed the economy ( a lie).
Thirdly, OPEC is removing Russians ability to make war and annex territory where Muslims live unmolested now in the Baltic States and in places like Moldovia, by making the Rubkle go distinctly south.
So US consumers can make hay now for 2 years, and will joyously vote democrat in 2016. WOW ! And then the price of oil will rocket back up to $120 in a week, in December of 2016.
BUY ALL THE OIL STOCK YOU CAN WHILE ITS CHEAP.
Cheap energy sources is what fueled the Great American Century in the 20th Century.
Remember how good it was? It can be again. And no, “energy” is not being squandered, this reprieve in prices will be our bridge to newer and even more plentiful sources of energy.
Most of the coming energy sources will be as a result of an efficient method of recovering Methane Hydrate from the ocean floor. Another will come from the adoption of thorium-powered nuclear reactors, which have the added advantage of being MUCH smaller than uranium-powered plants, and in fact, can “burn up” the accumulated quantities of radioactive “waste” from existing nuclear plants. Because of their extreme capabilities of heat generation, these thorium plants could even be used to economically distill sea water to potable quality, fit for irrigation and industrial purposes.
As a by-product, they could also be an excellent baseline power producer.
Unfortunately, my oil and pipeline stocks are in the crapper...
Well now is the time to double down and buy a lot more. You will be glad you did.
Most of my holdings are in funds. A couple of electric utilities are doing well, however. Must be cheap gas...
Leave it to Schiff to come out with his article on the day of a face-ripping oil rally.
OPEC has not raised their production, the US, and Canada are the only ones putting any significant additional oil on the market.
7 Reasons Why O&G Companies Could Make Good Stocking Stuffers
http://oilpro.com/post/9036/reasons-to-start-thinking-to-buy-ep-and-oil-service-stocks?utm_campaign=newsletter319&utm_source=dailyNewsletter&utm_medium=email
I wonder how much of this is also due to demand destruction over time, due to high prices and the moribund economy.
My mistake, I should have said that OPEC is refusing to decrease production to maintain a higher price.
Dumping can have to do with quantity or price
So are all producing oil countries.
Have you always believed it was a good thing for OPEC to act as a cartel, restrict production and raise prices? Or just the last couple months?
How does a commodity market get moved in price without changing significantly the quantities available?
Selling below market price set by supply and demand only makes a middleman wealthy.
No I do not believe it is a good thing to have OPEC controling oil prices, and never did. I actually believe that various nations should not follow a world price on oil.They should follow a more closely defined market and market price once independent of eastern oil.
Canadians should not be paying such a high price for their oil and gas, they have so much of it, now left in the ground to keep the price up rather than producing more to help the nation grow.
You believe that companies should ignore the cost and time of transportation and pretend their product isn't worth more than the cost to transport it?
Canadians should not be paying such a high price for their oil and gas, they have so much of it,
I believe owners of minerals should be allowed to sell their product for full market value. Pretending the market is only limited to the local area is foolish.
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