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Posted on 01/28/2015 5:10:53 PM PST by Red in Blue PA
“The O’Shiite economy. Barry the failure.”
America needs oil to be back at $120.00 a barrel.
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Good time to top-off the strategic oil reserve with the ME starting to explode.”
Excellent point.
Which means, of course, that -0- will do nothing.
The SOR is about 96% full.
Not a problem. The U.S. government is piling up debt, laundering it through CITI and handing that money over to Saudi Arabia to "cover the loss". Obama's way of screwing us over by hurting the domestic oil producers and piling up more debt. Sure we have cheap gas. That keeps your attention off what the other hand is doing.
For backgound see link or just Google Saudi CITI oil launder for yourself.
We recently over took SA for oil production.
. . . . . . .
Only if you count natural gas liquids, ethanol, biodiesel and the like as oil.
If you only count crude oil as oil, we produce less than Saudi Arabia and Russia.
Jumped here 33 cents today.
I think they only raise the price after there is a story in the news about how much the price of gas has fallen.
Exactly. I am completely convinced that these stockpile reports are totally manipulated.
Saudi Arabia’s actual deficit is expected to be somewhere between US$39 billion and $53.3 billion in 2015. They have around US$750 billion in currency reserves.
That does not include immense non-cash holdings, including those of the Royal Family. In addition, most workers in Saudi Arabia are foreign workers. If the economy won’t support them, they don’t get unemployment comp. — they go home. (On the other hand, retaining most of those skilled workers, at least in the oil & gas business, may be one reason Saudi has focused on steady production by volume, instead of steady GDP.)
This is not the whole picture by any means, but since Saudi’s GDP is not all that large, I believe they can survive a 20-30% contraction of GDP for several years. The Saudis are well experienced in such swings. It is also worth noting that their huge investments in their petrochemical industry (plastics production, etc.) are about to come online, which means that “column” is about to go from big expense to big income, shortly. They have some of the lowest cost raw materials in the world...
Last, and perhaps most important, Saudi Arabia no longer has the best hand in the price game. They themselves have said $100 bbl oil is never to be seen again. (”Never” seems a bit drastic — perhaps the translation is really more like “in our lifetimes”?) There is a LOT of oil out there at not over $50-$60 bbl, and more to come. Barring major geopolitical crises, that should set a sort of ceiling in years to come.
This article says oil will eventually level out at $65 bbl. But, I wonder if some of these guys (analysts) heavily weight the political side?
How much “pain” will Saudi Arabia accept in order to try to derail Iran?
How much shale oil is “out there” in countries where production costs might be less than in the US?
To what degree are many of these oil producing countries caught in a Catch 22, where their need for both revenue and a healthy economy (i.e., “gotta keep the oil industry employees working”) favors high production at a moderate price rather than moderate production at a high price?
Technological advances have already reduced the average cost of shale oil production further than expected. How far can that go?
How do you know?
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