Posted on 08/02/2016 4:28:47 AM PDT by HomerBohn
There goes the Ohio economy - maybe they better get on the Trump train.
Exactly. For some reason, people act as if there's never been an oil glut before. I've lived through at least four. Jobs are lost and real estate crashes in some places, while prices fall and jobs increase in other areas.
Yes but the fiscal breakeven price for Saudi oil is $106/bbl, which explains why they have spent down almost 25% of their reserves.
Still $1.93 where I usually stop, but maybe it will be down before I need more.
My kids think gas for under $2.00 is absolutely amazing.
“There goes the Ohio economy - maybe they better get on the Trump train.”
Unleashing the US economy (tax cuts and deregulation) would probably be the single biggest thing that could be done to increase global demand - which would lead to more oil field hiring.
If the US had growth rates like during the Reagan years (7%!),
oil prices could easily top $70 sustained, driving production from all of the US shale fields.
True, we had to finance that retaining wall, but the deal was pay it off in 36 months no interest and that we can now do. We also had it written in the contract that we could pay Lowe’s with gift cards gotten at Kroger’s for points off on gas. For the next 2 weeks that is 4 times the points. And 1% back from Discover. Never have finance charges there either.
Yes, I agree with your point in my later post (80) - the Saudis have to pump because they need the money. They are running big deficits in their government budget.
But as long as prices are over their cost to produce, they are making money - and they can profitably produce at much lower prices than American frackers.
They can’t afford to cut back production to drive prices higher, because competitors will fill the gap, before they make up on higher price, what they lose on lower volume.
Nations that rely heavily on the production and sale of commodities are often referred to as "Third World Countries".
If it truly is the case that our economy suffers more when the price of oil collapses that we benefit from low energy costs, then we have become a Third World Country.
We were paying $1.04 last winter.
Yes you are correct. Given a choice I would rather lose my job than my head.
Low energy prices bad?
If the rest of the economy was worth a bucket of warm owl crap low energy prices would be an extra tax cut pumping in $$$ into the economy.
Rigs now set up on one pad and drill a half dozen wells.
Demand for diesel is 10% lower year-over-year. Shipping may be down reflecting the lower GDP.
2 trillion in offshore drilling projects are shelved—need $70 barrel and uptrend in price to restart.
I had the opportunity to visit the Permian Basin a year or two ago. There was so much going on I took the advice of a pipefitter who had come from Pennsylvania where politics repeatedly brought work to a halt. He told us of the intense activity . In texas they offered all the days and hours he could stand. His problem was finding a place for his trailer. The RV parks were overflowing.
We drove around in the area just South and North of Monahans Texas for three days. I was amazed at the buzz. Most of the drilling was on the sites of existing wells. You now tell me they drill several new wells at the same pad. Very interesting!!
Aside fron the dust, my main memory is of hoardes of dusty white pickups busily engaged in some unknown errand.
Smart comment.
We agree but, the cartel should have been broken long ago - who helps their enemies get rich by taking money out of America other than pointy headed government and think tank types?
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