Vegas Free-for-All - Oil's slide

Oil's slide

jatki

Dec 1, 2014
1:55am

I understand the huge slide in energy stock prices but oil is rebounding today and energy stocks still getting hammered. This sucks.

F'n Saudi's, seems they want to put the shale guys outta business, they may succeed.

hoops2

Dec 1, 2014
2:50am

Block User

On the good news front, Russia & Venezuela are in big trouble if oil stays this low as oil is their principal source of income. Iran will also feel the effects as oil funds their nuclear and terror programs.

I was reading that $80 is a key breakeven point because when oil goes below that price drillers start taking their drills offline and minimize exploration. As oil inventories decrease the price will start to go back up

pjstroh

Dec 1, 2014
3:55am

Block User

If history is any guide you can expect AMerican consumers to quickly run back to gas guzzling SUVs and Trucks in the belief that cheap oil is here to stay. And they may be right this time. Or not.

In the meantime its important to note that some oil costs alot more to extract than others. Those Canadian oil sands and US Offshore drillers are in considerably more trouble than the frackers.

malibber2

Dec 1, 2014
4:27am

Block User

Quote

Originally posted by: jatki99

F'n Saudi's, seems they want to put the shale guys outta business, they may succeed.

The expected outcome and natural consequence of a drill baby drill policy?

rdwoodpecker

Dec 1, 2014
9:32pm

Block User

Quote

Originally posted by: malibber2

Quote
Originally posted by: jatki99

F'n Saudi's, seems they want to put the shale guys outta business, they may succeed.

The expected outcome and natural consequence of a drill baby drill policy?

The world economies are slowing again, not using as much oil. The USA is not needing as much as we did say 3 years ago thanks to the drill baby drill policy. Should be a good thing for us at the pumps. Our suppliers will slow drilling or even stop for a period if the price falls too far below breakeven. Alot of business' operate under these same problems with pricing.
The middle east needs money and money badly, the Saudi's are not going to cut production and neither are their pals. This will continue to bring prices down even more. Gas could very well get to $2 per gallon in the next month or so. No PJ, you are right these prices are not here to stay, it is a nice relief for the small business that drives thousands of miles per month. May even give the average consumer some more available cash for the holidays, which will be spent on products as well.

Boilerman

Dec 1, 2014
9:39pm

Block User

The cost to raise oil via horizontal drilling and fracking within the United States will drop $10 - $20 per barrel over the next 5-10 years. Technology is improving at a magnificent rate within this market. Just get Obama and friends out of the way.

Quote

Originally posted by: pjstroh
If history is any guide you can expect AMerican consumers to quickly run back to gas guzzling SUVs and Trucks in the belief that cheap oil is here to stay. And they may be right this time. Or not.

In the meantime its important to note that some oil costs alot more to extract than others. Those Canadian oil sands and US Offshore drillers are in considerably more trouble than the frackers.

pjstroh

Dec 1, 2014
10:08pm

Block User

Quote

Originally posted by: Boilerman
The cost to raise oil via horizontal drilling and fracking within the United States will drop $10 - $20 per barrel over the next 5-10. Technology is improving at a magnificent rate within this market. Just get Obama and friends out of the way.

I know thats your default response to everything but what exactly are Obama and friends doing to impede this technology?

Boilerman

Dec 1, 2014
10:38pm

Block User

Pecker, I disagree with your comment that "The USA is not needing as much (oil) as we did say 3 years ago thanks to the drill baby drill policy."

Increased domestic oil production and "drill baby drill" strategies have not slowed domestic oil consumption. In fact, the opposite is true.

The world economies are slowing again, not using as much oil. The USA is not needing as much as we did say 3 years ago thanks to the drill baby drill policy. Should be a good thing for us at the pumps. Our suppliers will slow drilling or even stop for a period if the price falls too far below breakeven. Alot of business' operate under these same problems with pricing.
The middle east needs money and money badly, the Saudi's are not going to cut production and neither are their pals. This will continue to bring prices down even more. Gas could very well get to $2 per gallon in the next month or so. No PJ, you are right these prices are not here to stay, it is a nice relief for the small business that drives thousands of miles per month. May even give the average consumer some more available cash for the holidays, which will be spent on products as well.

Boilerman

Dec 1, 2014
10:41pm

Block User

Not allowing drilling on public lands limits the technology learning curve. Not allowing pipelines, which limits exploration and drilling, limits the technology learning curve. No drilling equals no learning. Lots of drilling equals lots of learning.

I've got outstanding intelligence within this industry..............both on the exploration and production sides.

Quote

Originally posted by: pjstroh

Quote
Originally posted by: Boilerman
The cost to raise oil via horizontal drilling and fracking within the United States will drop $10 - $20 per barrel over the next 5-10. Technology is improving at a magnificent rate within this market. Just get Obama and friends out of the way.

I know thats your default response to everything but what exactly are Obama and friends doing to impede this technology?

pjstroh

Dec 1, 2014
11:04pm

Block User

Keystone pipeline is for oil sands - not fracking - so that point is bogus...which would suggest your outstanding intelligence on the subject would seem to fall short.

Oil companies have access to more drilling than they need - hence the "uncomfortably" low oil prices. And their costs are already vastly lower than deep water drillers and oil sand recovery.

I understand that people like Boilerman want to paint the president as an "anti-business-enviro-nut" but you cant say he's killing the fracking industry while simultaneously bragging about that industry's success. And yet that is what people like Boilerman do.

Its actually very entetrtaining to watch the critics. 2 years ago Mitt Romney was blaming Obama for high gas prices...now the critics are pissed that oil is so cheap!

Quote

Originally posted by: Boilerman
Not allowing drilling on public lands limits the technology learning curve. Not allowing pipelines, which limits exploration and drilling, limits the technology learning curve. No drilling equals no learning. Lots of drilling equals lots of learning.

I've got outstanding intelligence within this industry..............both on the exploration and production sides.

Quote
Originally posted by: pjstroh
Quote
Originally posted by: Boilerman
The cost to raise oil via horizontal drilling and fracking within the United States will drop $10 - $20 per barrel over the next 5-10. Technology is improving at a magnificent rate within this market. Just get Obama and friends out of the way.

I know thats your default response to everything but what exactly are Obama and friends doing to impede this technology?

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