Cheap oil - good or bad

[Tortuga]

Yea I didn't mention US shale because they mostly use it domestically. They export no or very little unlike other oil producing countries, given the fact that the US is still the largest consumer.

 

I don't believe that is current information. This article is from 2013 and it states that USA exports more than it imports.

 

http://america.aljazeera.com/articles/2013/11/14/us-exports-more-oilthanitimports.html

[Tortuga]

Here is more collateral damage from the low oil prices.

 

http://www.msn.com/en-us/money/markets/oil-prices-become-a-problem-for-us-steelmakers/ar-BBo1Ooj?ocid=spartandhp

[Tortuga]

http://www.cnbc.com/2015/12/30/despite-brief-rally-further-downside-risk-for-oil-on-opec-output-citi.html

"OPEC hopes keeping the oil market in surplus will help it maintain market share as lower prices drive higher-cost producers such as U.S. shale oil players out." 

 

http://blogs.wsj.com/moneybeat/2015/12/30/not-even-opec-can-fix-oil-glut-energy-journal/

Not Even OPEC Can Fix Oil Glut — Energy Journal 

 

Here are a couple of more interesting articles. The WSJ suggests OPEC may have gone too far, like Jazzjackrabbitt says, they may be digging their own grave but it seems they may be slowing the growth of alternate energy so their long game may be to keep oil as the primary energy source.

Edited December 30, 2015 by Tortuga

[Nobody]

You missed a country - US - especially the shale oil business. It is very costly. This is what they are hoping to stop. It costs a lot to start back up again too. But, that is very short sited - if it is the case.

I agree - they seem more focused on making what they can while they can.

Note: while oil and gas prices are somewhat connected - remember their is a refining process to be done and if that is not done in country prices can be very high. Also gas is a very heavily taxed commodity in many countries. This is often the largest percentage of the price paid at the pump.

 

 

Shale oil is not as expensive to restart as conventional wells. But even the conventional wells, unless they have been put in a deep sleep can come back up pretty easily. All about economics of it though.

 

http://blogs.platts.com/2015/01/09/oil-wells-shut-reoen/

[Nobody]

Yea I didn't mention US shale because they mostly use it domestically. They export no or very little unlike other oil producing countries, given the fact that the US is still the largest consumer.

 

Because it was illegal to export. I believe with this latest budget that was passed they slipped an amendment it that would allow exporting.

[Dustparticle]

Here my 2 cents on this and that is Saudi Arabia. They will go broke and collapsed and ask USA for help. So, thousands of USA troops goes there to save their butt so they can have oil and price it high while thousands of USA soldiers die for it. While the rest of the soldiers go home poor with unknown disease and broke down family while the people in Saudi Arabia says, "thanks suckers". Or did that happened in Golf War 1 with Kuwat?

[stargazer]

Not Golf war but choco wars I think. No?

[trottigy]

Consumers reaped a windfall from cheap gasoline in 2015. And that's likely to continue in 2016, due to a global crude oil glut that's expected to ease only marginally.

 

Unleaded regular gas averaged $2.40 a gallon this year, about 94 cents less than in 2014 and the lowest since 2009, AAA said Thursday. Each driver saved an average $550 in fuel costs compared to 2014, a bonanza that helped power consumer spending and the broader economy.

 

Gas was a bargain despite strong U.S. demand. Americans were on pace to drive the most miles ever in 2015, AAA says, because of both low fuel costs and a healthy economy.

 

On Thursday, the national average was $2 a gallon, the lowest on New Year's Evesince 2008, according to AAA. Even more impressive is that 71% of U.S. stations were selling gas for less than $2 a gallon, though California skews the nationwide average, in part because of the lingering effects of refinery outages in 2015, AAA spokesman Michael Green says.

 

Gas prices are lowest in Missouri, Oklahoma, South Carolina, Arkansas and Tennessee, averaging $1.72 to $1.75 a gallon. They're highest in California, Hawaii, Nevada, Washington and Alaska, at $2.47 to $2.85 a gallon.

http://www.usatoday.com/story/money/2015/12/31/gas-prices-2016/78137612/

Edited December 31, 2015 by trottigy

[trottigy]

How much money was saved on gasoline in 2015?

 

 

U.S. drivers saved a bunch of money on gasoline this past year, as Saudi Arabia and other OPEC members kept the pumps going in the face of low oil prices. Massive stockpiles of crude globally turned 2015 into the year of the pain-free fill up. More of the same is expected for 2016 as oil prices remain low. Here's a quick breakdown of the numbers, courtesy of the AAA.

 

POCKETED CASH

 

Americans saved a collective $115 billion plus this year on trips to the gas station. The average licensed driver pocketed more than $550, enough to cover a lease payment or two. The average price for a gallon of gas never broke $3 in 2015, and it dipped below $2 in December, the first time that's happened since the Great Recession in 2009.

 

http://triblive.com/business/headlines/9721701-74/gas-average-gallon

Edited January 3, 2016 by trottigy

[crazylee]

Saudi Arabia found out what happens when you block oil flow in 1973. I think they don't want that to happen again.

The oil sales go for welfare payments to many thousands (millions?) of people and they don't want riots.

 

They are better off getting something for the oil and the volume goes up with cheaper prices keeping income better than not selling so cheap. (Higher prices means that volume goes down making less money.)

 

Who knows what will happen except Jah.

[Tortuga]

On 12/23/2015 at 11:08 AM, Your Brother said:

The US is shutting down wells like crazy because they can't make a profit at these prices. The part I don't understand is why OPEC is flooding the market. Even if they temporarily drive some out of the market, it will be easy enough to restart when the price goes up. 

http://www.msn.com/en-us/money/markets/many-shale-producers-are-unable-to-ramp-up-oil-output/ar-BBqssar?ocid=spartandhp

 

It doesn't look like all of the US oil production will start up as quick as they thought...

[Nobody]

1 hour ago, Tortuga said:

http://www.msn.com/en-us/money/markets/many-shale-producers-are-unable-to-ramp-up-oil-output/ar-BBqssar?ocid=spartandhp

 

It doesn't look like all of the US oil production will start up as quick as they thought...

Ummm,  I said "when the price goes up" I didn't say when it would happen.