vpance
Member
http://finance.yahoo.com/news/low-expectations-oil-output-cut-082000197.html?l=1
Now if gas prices can come down another 30% that would be nice.
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Saudis block OPEC output cut, oil price sinks $4
- Thread starter vpance
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http://finance.yahoo.com/news/low-expectations-oil-output-cut-082000197.html?l=1
Now if gas prices can come down another 30% that would be nice.
Maninthemirror
Banned
Saudi Arabia's play here is the pipeline? the lower the price, the lower the incentive to have the keystone pipeline?
BrokenEchelon
Banned
Cheaper gas for me, hurts Russia.
Excellent.
Fracking is more expensive than traditional extraction. If they drive the price down for long enough, it'll force the US companies to cut extraction, which will put more marketshare back into OPEC's hands.
Excellent.
Fracking is more expensive than traditional extraction. If they drive the price down for long enough, it'll force the US companies to cut extraction, which will put more marketshare back into OPEC's hands.
Yeah that's what the environment needs right now.
monchi-kun
Member
When I learned to drive I paid .89 per gallon
I don't care what the environment needs. I want cheap gas dammit.
Earthstrike
Member
Thanks Obama!
titiklabingapat
Member
I know you are being sarcastic, but this time, it really could have been Obama. Foreign policy (is one aspect where the President has direct control over without congressional approval.
I honestly can't wait for this meme to fucking die...
OT: good move shitty for the environment but no one cares because CHEAP FUEL WOOHOOO!!!!!
:/
Its cute you think taking care of the environment matters when we will destroy ourselves in war by the end of the century.
Pretty annoying meme to be quite honest. While it's true that, some people are insane and blame Obama for everything (hence why the meme started and was kind of funny), it's annoying how it becomes a blanket defense for everything this admin does.
Can't criticize them ever, because then you automatic fall into the "crazy" territory that blames Obama for things he shouldn't be blamed for.
ZiZ
Member
some countries like the UAE might have other sources of income, but not Saudi Arabia.
They probably did this because the US told them to.
Tesseract
Banned
wut
This is sarcasm, right?
I have mixed feelings on this considering I work in O&G. Especially since I have a hefty salary compensation riding on how well my company does
Riiight
Exr
Member
Will I be ok
This is sarcasm, right?
I have mixed feelings on this considering I work in O&G. Especially since I have a hefty salary compensation riding on how well my company does
BP?
That has to be the best company on Earth to work for. My cousin works there and the benefits she gets are out of the world, and the bonus she gets when oil does well is insane!
TheLostBigBoss
Banned
Oh shit, please tell us how this will happen?!?
enanogrande
Member
Yes.
zero shift
Banned
How is Russia socialist and what does socialism have to do with putting all your eggs into one basket?
But yes diversifying is key. Ecuador and Saudi Arabia learned that lesson.
This is a move to hurt american newfound production. If oil price keep going lower, all the investment in American Companies which sell gas won't be able to come back and they'll have an hard time if not downright collapse. Sadly, south america and smaller OPEC countries get fucked as an aftermath too.
If they did I'd wonder why. Horizontal shale wells dry up much sooner than conventional verticals. Lower oil prices means no more drilling, so when existing wells stop producing, prices go up due to a lack of supply. Last I checked some of our wells in west Texas were getting $58/bbl, I don't want to know now >_>.
My boss' first run with a price drop was in 1974, and every time it took 9-10 months to even back out. The exception was 2008, when it took about 18. My company has already stopped drilling; we'll hunker down, focus on the geology of potential new plays, and come out stronger for it. 2010 was our best year because so many companies didn't prep enough for the rebound.
jajaja. Actually dollar gas would be wonderful for the American economy. The environment wouldn't be impacted as much because cash for clunkers and more efficient vehicles being the norm now.
But people would start traveling again, tourism, trips to restaurants and malls, and venues 'just because'. And since there are city circulator bus options, people can drive to the station parking lots and take city buses.
It doesn't have to be a disaster. It's all in how you manage it.
A Fish Aficionado
I am going to make it through this year if it kills me
OPEC is losing its influential power due to other markets and pressures. They want it expensive.
Funky Papa
FUNK-Y-PPA-4
Are we back in the 80s?
Earthstrike
Member
Actually, I wasn't being sarcastic. I know U.S. has considerable influence over SA so there may be some reasonablility in assuming USA was involved.
More Fun To Compute
Member
Oil price affects so many things that I guess it is almost impossible to say what they are trying to achieve with this without insider knowledge.
vpance
Member
Yep. The American recovery is real, and spectacular.
titiklabingapat
Member
I agree actually. There is an actual measurable trend for moving into the center parts of the city and gas was just one of the factor, so this trend likely won't affect it too much. Demographics, re-investments and preferences and geography will still play a bigger role in people moving back into the city again.
I'm not worried about public transit ridership either. As more and more people move into denser areas due to the aforementioned factors, cheaper gas prices still cannot alter geography and geometry. After all, cheaper gas prices cannot change how many people can fit in any given space on a freeway or street if they all decide to move at the same hours everyday. (this applies to robotic cars too)
No, it's one of the major O&G service providers/manufacturers. I was shocked when I got this job at how awesome the benefits are.
dripdripsplash
Member
alol
IS funds themselves through captured oil fields, ransoms, the Mosul bank takeover, not Saudi Arabia. I'm sure private moneymen in the country have donated but I'm not too sure that the Saud family, the embodiement of everything wrong with the Islamic world (in IS eyes), would support them.
EDIT: Another theory is they maybe backed in the start, to get steam going, but then backed off after they saw that IS got out of their control.
The Regime released several prominent jihadist in a large release of prisoners, in 2011 i believe, in an attempt to militarise the revoltion and portray it as consisting of foreign terrorist cells, acting on behalf of foreign enemies, a foreign conspiracy basically. Got out of control too.
USA tried to control it in Afghanistan v the Soviets... Got out of control too.
When will they every learn ?
A Fish Aficionado
I am going to make it through this year if it kills me
Oil companies pay upwards of $14 an hour for basic fire watch duty...much better than working retail. And that's contractors without a union.
Pankratous
Member
speculawyer
Member
Climate change really isn't an environmental issue, it is a human civilization issue. The environment will adjust. Sure, a lot of species will go extinct but that's happened before. But civilization will lose cities to flooding. Lose infrastructure due to storms. Lose agricultural areas due to salt water storm surges flooding fertile river deltas. Lose agriculture due to droughts & heat waves. Lose sea food productivity if the ocean food chain collapse due to ocean acidification.
Climate change got bad branding as an 'environmental' issue . . . it is really a human civilization issue.
Don Chalupa
Banned
Russia will survive this. U.S. fracking boom... not so much.
This has almost nothing to do with Keystone. It is about a cartel (OPEC, but more specifically Sauda Arabia) attempting to drive competition out of the market. They are attempting to protect market share. Besides, many Canadian producers are now using railcars to ship crude when there exists pipeline bottlenecks.
Since I'm too lazy to write a summary of the break even costs for oil production in N.A., here is a picture instead. Canadian producers are relatively secure at the moment because of the depreciation in the CAD relative to the USD.
speculawyer
Member
Yeah, I worry about Venezuela. They've got to be close to financial collapse. Actually, with some 64% inflation they are pretty much experiencing financial collapse.
The government needs to cut back on the social program an invest in oil extraction. If you don't invest, your production drops. And dropping production during dropping oil prices has pretty much made Venezuela a basket case.
More Fun To Compute
Member
They don't sell in any official market so the prices they can charge are likely to be wildly different and lower.
When is fracking too expensive, I wonder. $40 a barrel? $30?
Edit: beaten and thanks for the graph.
speculawyer
Member
They will all survive, it is just a matter of how much pain each experiences. The prices will eventually recover (Unless some big game changer happens like Iraq doubling output, EV battery prices dropping, China economic collapse, etc.)
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