Watch leading energy expert Dr. Daniel Fine as he discusses the impact of falling oil prices (Video)

Discussion in 'Energy' started by bluewill67, Sep 12, 2015.

  1. bluewill67
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    bluewill67 Rookie

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    For the video of Dr. Fine use this link-->
    Dr. Daniel Fine, associate director of the New Mexico Center for Energy Policy, discusses the impact of falling oil prices on the domestic energy industry. Fine offered these comments during an interview for Carolina Journal Radio (CarolinaJournalRadio.com) Program No. 640. Video courtesy of CarolinaJournal.tv.
     
  2. Mr. H.
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    Mr. H. Diamond Member

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    Not just unconventional, but conventional activity. It's killing us across the board.

    Now if we were farmers, there would be a floor price on oil and we would get paid to shut in production.
    We'd also have available insurance to guard against extreme weather conditions that often cause us to shut down operations in the winter or in the case of severe flooding. Plus, we would be allowed to export our product. There would be mandates that require refineries to use exclusively U.S. crude in their blends.

    :fu:
     
  3. waltky
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    waltky Wise ol' monkey Supporting Member

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    OPEC optimistic as the demand grows and non-OPEC supply contracts...

    OPEC chief optimistic of balanced oil market in 2016
    Sunday 11th October, 2015 - Abdalla Salem al-Badri, Secretary general of the Organization of the Petroleum Exporting Countries (OPEC), is optimistic of better days for the industry with a more balanced oil market in 2016 as the demand grows and non-OPEC supply contracts.
     
  4. waltky
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    waltky Wise ol' monkey Supporting Member

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    Russia, Iran go off the reservation on oil production vs. Saudi Arabia...

    Iran, Russia reject idea of joint oil output cuts with Saudi Arabia
    Thu Dec 3, 2015 | Oil-producing countries looked unlikely to reach a deal to lift languishing prices at a meeting on Friday after Iran, Iraq and Russia swiftly rejected a surprise proposal that appeared to have been floated by Saudi Arabia.
     
  5. SAYIT
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    SAYIT Diamond Member

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    Yanno, on a political level I'm all for domestic oil production supports. I like the idea of fukin' OPEC members where the sun don't shine and low global oil prices means the world has more cash to spend on American products and services.

    On an economic level however, how do your pains and probs differ from those of commercial real estate developers who got stuck in 2007 when the music stopped and all the chairs were pulled? There was no support for me as my holdings lost 60% of their value, the banks pulled the financial rug and there were few if any buyers.
     
  6. Mr. H.
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    Mr. H. Diamond Member

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    Commercial real estate developers are allowed a tax deduction on 100% of their expenses which can be written off in the year that they are incurred.

    For example, if they employ a landscaper or an architect then those expenses are deductible. Those services are not the development itself but they are supportive, or intangible, expenses.

    But if I employ an intangible supportive service such as that of an engineer or geologist, then those costs must be expensed over several years. This ties up much needed capital.
     
  7. SAYIT
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    SAYIT Diamond Member

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    A minimal advantage at best. Oil is fungible and to the extent N. American producers can bring it to market at or near the price of the competition, you can sell it (usually at a profit) daily.

    When an investor purchases property for development and something like the 2007 collapse occurs, not only does the market disappear but funding also dries up, leaving partially improved property, a lack of resources to complete and no buyers even if the project gets finished.

    In other words, I own seriously devalued property on which I pay taxes and maintenance but have little chance of living long enough to turn a profit or even sell at a slight loss and the point remains maintenance, interest and taxes are deductible but without profit, useless.
     

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