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Old 06-29-2017, 03:12 PM
3,189 posts, read 1,295,002 times
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Originally Posted by oldoak2000 View Post
We are just at the BEGINNING of realizing potential of horizontal drilling and the now newly discovered (since 2009+) VAST recoverable reserves of DOMESTIC sweet crude.

This means NOT ONLY a Top Lock on gas prices, but keeping our dollars local (INSTEAD of shipping palates of hundred-dollar-bills overseas to semi-hostile foreign entities in exchange for their nasty heavy crude) - a MASSIVE boost the domestic economy, bigger than any other industry out there.

'Dakotas' is nothing (while still significant) compared to what is currently being discoved: https://www.dallasnews.com/business/...hale-formation
You know that's a big lie, right?

It is true that we have VAST 'recoverable' resources.

This is shale.

Do you know of some kind of magical technology that can extract oil from this and still be economically viable?
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Old 06-29-2017, 03:28 PM
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Tech Miracle In U.S. Shale Is A Media Myth | OilPrice.com
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Old 06-29-2017, 03:36 PM
Location: Beautiful Pennsylvania / Dull Germany
2,214 posts, read 2,513,179 times
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I think it will remain cheap for a long time and it is good that it does.

As soon as the price hits a critical price around 55-60 all the fracking industries will be profitable again and push the button. I just hope the Saudis and some other sponsors of the evil will go bankrupt before prices will go up again. The system will be self-balancing with production costs of different sources being a very flexible supply.

All those blah blah about oil will be gone in 20 years... they already told us 40 years ago! Still in 200 years there will be more than enough, a new production technologies will be developed and applied.
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Old 06-29-2017, 03:40 PM
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No way they will be profitable at $60. Right now, they are picking all the cherries. The Bakken field is in decline. I don't know if there is one tight oil producer who isn't bleeding out of their eyeballs.

In the short term, I would at the very least expect an oil shock, but who knows when. Can't be too long because eventually, inevitably, these producers are going to default.

The big worry is the wave of unfunded derivatives that will come crashing down. Won't that be special.

Wish they would stop lying to people though. This is a much bigger threat than people believe. It could be the catalyst for a global financial meltdown.
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Old 06-29-2017, 03:53 PM
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$1.77 a gallon here today.
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Old 06-29-2017, 04:51 PM
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Oil is a global commodity. Russia, Saudi Arabia, and the United States are the big 3 producers. They produce more oil than the rest of the world combined. Russia isn't going to cut production because they rely on it to prop up their country. The United States thrives on cheap energy so the Feds are never going to do anything to make energy more expensive. Dunno why Saudi Arabia doesn't cut production to tighten supplies and raise prices. I guess they have very low extraction costs so they don't care.

This isn't some Wall Street conspiracy. Fracking in the United States has some impact on global supply but the US is only the #3 producer. The Russians and Saudis could collude and jack up oil prices but they haven't done that.
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Old 06-29-2017, 05:24 PM
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The problem is no one wants to cut supply while everyone else has the tap turned on. They are trying to starve out the shale producers by keeping prices low enough to keep a lid on that, while still pumping enough to cover their contracts so they don't lose business. It is a delicate balance and shale has been incredibly resilient.

Either way, even if the current shale operations cease, the second prices jump to justify opening them again they will. Thus it is likely that prices will stay low to reasonable in the foreseeable future. Short of a major calamity, war or similar.

Now when it comes to gas prices, oil is only part of the equation. Our refinery capacity has dropped significantly and what is there is old. Just another piece of the puzzle.

As for an oil substitute, we have the technology now for a variety of options the problem is price and replacing centuries of infrastructure. Don't confuse it not happening with not being able to do it. We can, we just don't have the political will nor the desire to spend money.

Either way, fossil fuels are a dying business. States that refuse to diversify are going to suffer the same fate as their NE brethren when all the mills and auto plants closed down. The decline will be long and slow with many ups and downs but it is inevitable.
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Old 06-29-2017, 07:01 PM
Location: State of Transition
73,186 posts, read 64,726,866 times
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Originally Posted by MinivanDriver View Post
At a very high cost. Energy costs have risen roughly 50% in Germany since this effort has taken place.


Look, nobody is saying that we should burn gasoline indefinitely. At the same time, renewable energy has a long way to go before it's cost-effective.
Solar is so cheap and practical that it threatened to put conventional power stations into mothballs, threatening thousands of jobs in Germany. Similarly, Arizona restricted solar development to some extent, fearing that their power companies would go belly-up, and would have no way to pay staff to maintain the facilities.
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Old 06-29-2017, 09:56 PM
4,933 posts, read 2,201,007 times
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While it's a pipe dream...(pardon the pun!), It would be awesome if the USa did find an energy source that crippled the middle East. Totally disengage with the oil industry and then see how they lose political favor.
As it stands the US depends on Canada to do our bidding for oil/gas.
So thank a Canuck if our prices are lower.
Ours have yet to hit under 2.20 a gal. But there is about 40cents in tax latched to it...
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Old 06-29-2017, 10:14 PM
Location: Midwest
592 posts, read 794,487 times
Reputation: 970
I celebrated the age of low gas prices ($1.97 today- yeah!!!) by buying a big, bad F150 gas guzzling truck today. That's a great thing for me, my family, the economy, and plenty of other folks. Win!
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