Posted on 05/18/2016 6:05:22 PM PDT by panhandle67
Q1: Is more regulation the solution?
Q2: Is more regulation ever the solution?
The number one goal of any economy is to get cheap prices and high quality for the consumer, not to keep a certain producer in or out of business. The customer is always right. Increased competition helps the consumer while it lets inefficient producers go out of business left and right, which is how it should be.
Maybe U.S. producers should pump huge amounts of oil to crush OPEC.
Oil imports should have been stopped 2 years ago. Fracking and other oil recovery methods, have made the U.S. completely independent as to oil consumption. The pipeline controversy would merely provide MANY high paying jobs, and allow Canada to export oil safely and at a profit...we don’t need it.
Those days are long gone if the present oil glut is handled properly....Let free market determine the price and keep the government out of it.
I mean that we don't need the oil, we do need the pipeline!!!
What are you prattling on about????
* The USA is currently the number one producer of oil and LNG in the world. Cold reality!
* Hydraulic Fracturing; developed 70 years ago; produces very
‘sweet’ crude because shale acts as a high quality filter.
* The production cost advantage of Saudi Arabia, which began 85 years ago, has eroded substantially since that time.
* Protectionism is economic illiteracy beloved by crony capitalists, lobbyists and similar hustlers.
Says who? Says you? You, the persistent Cruzbot? No thank you.
I know all that and know much more than you on this subject. I was with a heavy investment team both in the Bakken and with negotiating LNG with KOGAS.
The cost advantage of Saudi Arabia has ‘eroded’? BS! Back it up or go away!
Most drillers in the US are not crony effing capitalists. They are small operators seeking a living and an opportunity for great success.
It appears you’re one of those financial types, like the msm yip-yap boys who compulsively blather on about the oil market; while their knowledge of geology and petrochemical engineering wouldn’t fill the south east quadrant of a postage stamp.
Saudi Aramco’s low production costs have increased steadily over the past 80+ years for obvious reasons, among them:
* they no longer drill at a depth of a few hundred feet.
* the viscosity and sourness of their oil has increased.
* their “Rub al-Khali”/Empty Quarter; is a costly, dangerous and desolate desert in which to explore and drill.
Apparently, you’re unaware that the Saudi’s have announced plans to divest material portions of their industry.
Further, the best quality oil in the region comes from Iraq.
Upon reflection, what you don’t know about the oil business is very impressive.
Actually, if we stop importing oil, the world oil price would collapse. There would be 4b barrels a year more oil on the world market which would be a huge glut.
Of course, oil prices here in the US would skyrocket. The article says it would exempt Canada and Mexico, so what would actually happen is that they would sell ALL their oil to us and nothing to anyone else in the world. So prices would not skyrocket but would rise to whatever the local shortage would be while US, Canadian, and Mexican producers ramped up. Other countries would still face a glut and enjoy lower oil prices than us. We might even find Mexican companies buying oil on the world market and selling it on to us claiming it was produced in Mexico.
Overall, not a very clean solution. Price guarantees would be cleaner without costing a dime. US producers would be assured OPEC couldn’t pull the rug out from under them, and opening up more federal lands including ANWAR would lower production costs. Not free market, but then again OPEC is not a free market player.
In the meantime, Goldman Sach's and speculators have driven the price of oil from under $30/bbl about two/three months ago back up near $50/bbl even though OPEC is pumping near record levels of oil and demand is still down to flat.
No market manipulation going on here, no sir! (/sarc)
>>Sad to see the oil producers take such a strong stance against free markets
Almost every barrel we import strengthens an enemy of the US. This was a sound strategy back when we were a manufacturing powerhouse and we believed that the world would run out of oil in 50 years. Free trade should never be a suicide pact.
this is not the producers but apparently people associated with production that want jobs
I said provide proof or go away!
Is funding terrorists also one of your goals ? Because that is what sending money to OPEC accomplishes. National security dictates we not allow foreign government controlled oil producers to crush our domestic oil industry. No matter how wonderful you think “cheap prices” are. Our planes, tanks, and trucks run on oil. Our military might runs on oil. You don’t give your potential enemies the ability to shut down your military.
Part of the price increase is due to retooling from heating oil to summer gas blends. Prices will drop soon, oh and Obamas $10.00 surchsrge /bbl of oil.
Yeah, the "it's our oil" crowd.
In the late thirties, Aramco sold oil profitably at $2/bbl; which is not possible today because of the inexorable rise of the cost of the factors of production over time.
All oil producers face the reality of the Law of Cost which is why they are continually seeking the substitution of lower cost production processes. Surely you grasp this 2nd grade level concept??? Have the last word.
Jesus, Mary and Joseph!!!
You’re full of nothing but BS. Now get Lost!
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