Vegas Free-for-All - OPEC Won't Cut Production Even If Oil Drops Under $20 A Barrel

Don

Dec 23, 2014
8:14pm

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Originally posted by: jatki99
Do you think people aren't loving 2.50 gas?

[CONTENT REMOVED by DonDiego]

Boilerman

Dec 23, 2014
8:16pm

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The oil industry pays $150 billion in taxes, and some folks fixate on the $2 billion in subsidies that they receive..........most of which is for wind and solar projects.

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Originally posted by: malibber2
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.

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Originally posted by: pjstroh
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.

jatki

Dec 24, 2014
7:11am

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Quote

Originally posted by: malibber2
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.

Quote
Originally posted by: pjstroh
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.

The Saudis trying to starve the shale people was my initial thought when they first refused to cut production and who knows, they may succeed. It costs them roughly ten bucks a barrel so ,yea, they can endure lower profits for a while, BUT the Saudis have some pretty enormous obligations at home so it won't last forever. It looks like oil's gonna be in the 50's for a while, but just wait, production is being scaled back right now and prices will start moving up.

I would say the keystone pipeline is almost officially shelved for now.

jatki

Dec 24, 2014
7:16am

Block User

Oh yea, and if nobodys noticed, nat gas has tanked recently, 4.50 a month ago, last trade today 3.03. YIKES!