and Venz oil is crap oil, like sludge
Posted on 01/24/2016 9:05:27 AM PST by Lorianne
Go back 12 years.
In the political arena, shale was unviable, and drill baby drill couldn’t solve our energy problems. Or so we were told.
Why? Most metrics showed we needed $60/ barrel oil for the investment costs to be recaptured.
In 2008 when prices were around 90, the claim was that it was unsustainable due to untenable prices at the pump.
Jump forward, and the market has crashed due to a glut, largely from increased US and Russian production, all while OPEC maintained production levels.
The problem remains the cost of production in the U.S. And the international interests (Saudis) are willing to bite a short term bullet to regain their long term dominance over the market place. Why else would OPEC refuse to cut production? They know they win in the long run.
See this story from only 2 days ago, 22 January 2016, OPEC is still not unanimously willing to cut production.
https://www.rt.com/business/329803-opec-oil-saudi-nigeria/
Just my 2c , but this is recent history, in our time. Do your own research.
It’s the oil business.
The wells are drilled it is money in the ground…the stronger will buy out the weaker….The Saudis could go bell up
Note to self - buy beaten down oil company stocks - price of oil is going back up.
And, since Oboma wants them to die, “Washington” will continue its foreign policies and its overseas work to destroy them as fast as possible.
They are all based in TX, ND, PA, and OK and those eviiiillll “red states” don’t you know.
It’s not a ponzi scheme. Never was.
I don’t know that it’s bottomed yet, but inevitably the price of oil will go back up. Could be years or even decades, look at the 80’s oil bust.
Good one. The oil business is usually feast/famine.
Back in the mid 80’s the price of oil was $9 per barrel.
Joke going around that time was:
What’s the difference between a Texas oil man and a pigeon?
A pigeon can make a deposit on a Mercedes Benz.
Good one. The oil business is usually feast/famine.
Back in the mid 80’s the price of oil was $9 per barrel.
Joke going around that time was:
What’s the difference between a Texas oil man and a pigeon?
A pigeon can make a deposit on a Mercedes Benz.
“Iraq sold oil at $22 / barrel on Thursday. Ditto Venezuella.”
Aren’t many refineries that can handle the trash from Venezuela.
Shale oil requires a certain price level to warrant drilling. That level is much lower than it was a decade ago, by the way.
But once the well is drilled, its drilled. Drop the price all you want, the well keeps on producing.
New shale oil helped drive down prices, which was a good thing. Decisions by the Saudis also helped, and Iranian oil coming into the market will weaken prices more. So there won’t be many new wells drilled for a while. But as soon as the market tightens up a bit, they’ll be back. They know right where the oil is, they don’t have to go looking for it, which helps to keep the “go” price down.
If they can get a better pipeline network built, the “go” price gets even lower. In the long term, this is very good for us.
By the way, this is normal in the oil business. In the late nineties oil dropped to $8 bucks a barrel. There was blood in the streets in some producing countries. It always comes back up. And it always goes back down again though, thankfully, not back down to $8.
” we’re headed back to square one as far as being independent” - well the oil IS still in the ground for when we pump it.
Shale oil is not a Ponzi scheme. Not even close. This is the way commodity prices go. Up and down. Repeat.
It’s about the financing.
There were a number of businesses which went bankrupt during the Great Recession. It seemed like the worst hit were those with the greatest amount of debt on their balance sheets. I predict the same thing will happen in this next year for the oil companies. The small companies are the most leveraged and the least likely to survive. Before buying oil stock, I would closely check out their balance sheet.
BTW, we sold the one oil stock we held on 12/31/2013. It has since dropped 96%.
The House of Saud is in worse shape than the American oil industry. Historically, oil has always been boom or bust. Once a company goes belly up, another takes its place. It’s not rocket science, and it’s not the end of the world or even America. Free markets are messy, and corrupt markets are messier by far.
Toppling the House of Saud would be worth most American oil companies going bankrupt. They will rise again. If Saud falls, Wahabism will die, and that will be worth celebrating. Optimism is a good thing.
“...we’re headed back to square one as far as being independent.”
You are so right...d@mmit.
These raghead goat humpers have been riding roughshod over us since 1973. Would so love to see Mecca and Riyadh nuked flat.
and Venz oil is crap oil, like sludge
Obama wants coal and oil to die.
How would he Fly around in Air-force One ,flap his arms
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