Oil prices

dvk01

Derek
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http://www.bbc.co.uk/news/business-30693905

Oil prices are at an all time low.
If I was a cynic or more paranoid, I could easily see this as the first strike in the war between radical Islam and the west. With Saudi Arabia cutting Oil prices so much, that it becomes uneconomic for the west to extract oil from North Sea or mainland USA. As soon as production stops in those areas, the prices from Saudi Arabia will rise to almost double the high levels of a few years ago. Then Radical Islam will have destroyed the west and taken control without firing a single shot.
 

valis

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hahahahahah......:)

I dunno......I can see it happening as well, Derek......pretty sure it was outlined in Red Storm Rising......toss Putin into the mix, gets real interesting real quick.....
 

Drabdr

Brad
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I'm sure the "It's Bush's Fault" crowd will be along shortly....

 

Drabdr

Brad
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Not sure what it will do to Texas' Economy. I just paid an outrageous amount of school/property taxes on a not-so-fancy-not-so-nice house.
 

valis

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Giorgio Tsoukalos. That dude wouldn't know a fallacy if it introduced itself, bought him dinner, and took advantage of him afterwards. I'm not going to call him stupid, but I will say he is depriving a village somewhere of an idiot.
 

Ent

Josiah
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If this were a game of dumping, in the economic sense, it needs to be hard for competitors to get back on their feet once the prices go up again, and it seems to me that in an industry where the biggest constraint is "where is there oil" that wouldn't necessarily hold.
How long does it take to resume oil production? How long would prices have to be held way down (at a considerable opportunity loss to Arabia) to make that harder?
 
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It takes about 30 seconds to start a motor on an oil well pump jack to resume production.

This is normal Big Oil BS. Every time we get serious about alternative fuels and have been milked beyond our wildest dreams, we are flooded with crude oil - until the next crisis (or fabricated shortage). It's a cycle that's been going on since the 70's. The world keeps falling for it - stops or reduces it's seeking alternatives fuels - just a major circle jerk - citizens are so stupid to continue to fall for this tripe. Lemmings all.

I'll repeat that which I've said here many times - we have NEVER had a shortage of crude oil; lack of refining capacity; never seen peak oil and never will. Oil and coal will be our major sources until well into the next century. Outside of greed, there was a never a reason for $4/gal + for gasoline or diesel. Electric cars are a boondoggle waste of time. Fusion is the future.

I expect there will soon be a major number of motel/hotel properties for sale and /or bankruptcy in the Eagle Ford Shale area - couldn't happen to a better bunch of price gougers. One of my principals that relies on welders and pipe fitters lost many workers a few years back to oil field - now their come crawling back, hat in hand. Oil is now, and always has been boom or bust and not much in between.
 

Drabdr

Brad
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But someone is losing money right now. Those people were making a larger fortune (than they are now) when gasoline was $3.80 a gallon. If the cost of production and refining has increased, who is losing? And why?
 

valis

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Ent

Josiah
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You speak of additives, but most of the news coverage refers to price for crude. Surely that must be something else.
 
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But someone is losing money right now. Those people were making a larger fortune (than they are now) when gasoline was $3.80 a gallon. If the cost of production and refining has increased, who is losing? And why?
No one is losing in Big Oil. They can stop drilling today and pump oil for the next 20 years with no shortage. Refining cost are very stable and have been for years. Big oil profits may be down from the stratosphere (where they never should have been to begin with), but they darn sure aren't losing money or going broke. I shed not a tear for the twits..

The big beneficiaries right now is the American public and it's about time. Best enjoy it while you can. I filled 19 gal. today for an even $34 - beats the crap out of $75 I paid for the same under your hero Shrub.:eek::D
 

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