OPEC Won't Cut Production Even If Oil Drops Under $20 A Barrel

Drill Baby Drill!
Drill Baby Drill!
Drill Baby Drill!
Keystone Pipeline
Drilling in ANWR

What are Republicans going to run on in 2016?

It looks like a rough ride for oil producing states.
Linky

Do you think people aren't loving 2.50 gas? Seriously mal?

Sucks for people invested in oil right now, but for the masses it's a windfall.

Its a problem for proponents of the Keystone Pipeline because we are getting close to oil sands drilling becoming a non-profitable enterprise. But I think its likely to be a short term issue.

I won't be happy with gas prices until gas costs $1.00 a gallon.

I heard that our socialist communist Kenyan muslim dictator is going to add a resort fee at the gas pump......

If you read the article Saudi Oil only costs $4-$5 a barrel to produce. It becomes pretty clear the intent is to dive the shale oil people out of business, and it looks like OPEC is willing to commit long term to lower profits to achieve that. In other words the pro-drilling folks are going to be hung by their own noose. Although, I am sure in short order their Republican friends in Congress will shower them with some more subsidies to make their non-profitable businesses profitable.

If oil was the only product obtained from shale, you might be right. It isn't. Natural gas will keep fracking alive and well no matter what the Saudis do.

I see PJ has bought into the lies that ObeyMe has told multiple times concerning Keystone only being about Canadian oil sands. It isn't. There would also be feeder pipes from American wells...a further reduction in the need to ship the stuff on Warren Buffet's railroads.

I just filled up for $1.88/gallon.................16 gallons for $30 bucks.

I suggest that substantial drilling will continue. The cost to raise oil on fracking/horizontal drilling jobs has decreased $20 per barrel over the past 5 years due to better technologies and experience using these technologies. The learning curve is far from over, and we can expect another decrease in the cost to raise oil by $20 over the next 5, maybe 10 years.

In addition, most OPEC countries can't survive on $60 oil. The Saudi's can't survive long on $20 oil. The high cost OPEC producers will disappear before American producers will.