The Carnage Continues

[SAYIT]

It's a beautiful thing. America's free market shale oil producers have made the non-OPEC World a better place by flooding the market with American oil and driving down prices. In just 1 day since this article was posted at Biz Week the price of Brent crude fell another $2/bbl (down 45% since June) with no bottom in sight. Meanwhile Iran's President Rouhani whines that oil's price drop Is unnatural by which he must mean beyond OPEC's control. WooHoo.

Shale Oil s Relentless Production Is Breaking OPEC s Neck - Businessweek

 

[BULLDOG]

It's a beautiful thing. America's free market shale oil producers have made the non-OPEC World a better place by flooding the market with American oil and driving down prices. In just 1 day since this article was posted at Biz Week the price of Brent crude fell another $2/bbl (down 45% since June) with no bottom in sight. Meanwhile Iran's President Rouhani whines that oil's price drop Is unnatural by which he must mean beyond OPEC's control. WooHoo.

Shale Oil s Relentless Production Is Breaking OPEC s Neck - Businessweek

I really hope you're right, but as your link mentioned, the shale wells are short lived, and, given that shale fracking is higher cost than conventional wells, new wells will be drilled only if the price of oil makes it worthwhile at the time. OPEC is certainly taking a hit, but I fear their failure to reduce production will continue lowering the price for oil and stop the next set of wells to be drilled here, returning the control they originally had. I guess time will tell.

 

[SAYIT]

It's a beautiful thing. America's free market shale oil producers have made the non-OPEC World a better place by flooding the market with American oil and driving down prices. In just 1 day since this article was posted at Biz Week the price of Brent crude fell another $2/bbl (down 45% since June) with no bottom in sight. Meanwhile Iran's President Rouhani whines that oil's price drop Is unnatural by which he must mean beyond OPEC's control. WooHoo.

Shale Oil s Relentless Production Is Breaking OPEC s Neck - Businessweek

I really hope you're right, but as your link mentioned, the shale wells are short lived, and, given that shale fracking is higher cost than conventional wells, new wells will be drilled only if the price of oil makes it worthwhile at the time. OPEC is certainly taking a hit, but I fear their failure to reduce production will continue lowering the price for oil and stop the next set of wells to be drilled here, returning the control they originally had. I guess time will tell.

Thing is, we seem to find new reserves every year so that even while pumping out 9-10 million barrels per day, our known reserves are growing significantly. Fracking costs will fall as the technology improves and even at $50/bbl it is currently profitable. Lower prices will force other countries whose economies are totally oil-based to pump as fast as they can just to keep their own lights on. It's a beautiful thing indeed. Enjoy.

 

[BULLDOG]

It's a beautiful thing. America's free market shale oil producers have made the non-OPEC World a better place by flooding the market with American oil and driving down prices. In just 1 day since this article was posted at Biz Week the price of Brent crude fell another $2/bbl (down 45% since June) with no bottom in sight. Meanwhile Iran's President Rouhani whines that oil's price drop Is unnatural by which he must mean beyond OPEC's control. WooHoo.

Shale Oil s Relentless Production Is Breaking OPEC s Neck - Businessweek

I really hope you're right, but as your link mentioned, the shale wells are short lived, and, given that shale fracking is higher cost than conventional wells, new wells will be drilled only if the price of oil makes it worthwhile at the time. OPEC is certainly taking a hit, but I fear their failure to reduce production will continue lowering the price for oil and stop the next set of wells to be drilled here, returning the control they originally had. I guess time will tell.

Thing is, we seem to find new reserves every year so that even while pumping out 9-10 million barrels per day, our known reserves are growing significantly. Fracking costs will fall as the technology improves and even at $50/bbl it is currently profitable. Lower prices will force other countries whose economies are totally oil-based to pump as fast as they can just to keep their own lights on. It's a beautiful thing indeed. Enjoy.

My arm chair analysis has been right as well as wrong in the past. Fortunately, my opinion means little when it comes to decisions made by oil producers. I guess time will tell, and hoping for the best never hurt anybody.

 

[Mr. H.]

The only market being "flooded" by U.S. production is the domestic market. We're simply backing out imports. We're not allowed to export any of our fucking oil, even though we export tens of millions of gallons of ethanol each month. Those ass-fucking farmers get everything for which they ask.

 

[Iceweasel]

Those ass-fucking farmers get everything for which they ask.

Why not? They spend all day plowing the back fourty.

 

[SAYIT]

The only market being "flooded" by U.S. production is the domestic market. We're simply backing out imports...

And isn't that alone an excellent reason to pump and smile? Even if only American consumers were to benefit from our newfound oil production it would be welcome it but the fact is the oil we no longer import is still making its way into the global supply, forcing down prices worldwide (making life better for all) and freeing up money formerly spent on oil-related products to be spent (or invested) elsewhere. Nice.

 

[BULLDOG]

The only market being "flooded" by U.S. production is the domestic market. We're simply backing out imports. We're not allowed to export any of our fucking oil, even though we export tens of millions of gallons of ethanol each month. Those ass-fucking farmers get everything for which they ask.

We export much more than that in finished products. If our production isn't flooding the market, why are oil prices dropping world wide?

 

[SAYIT]

In the past week alone the price of Brent crude has fallen over 10% or about $7/bbl.