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As I said, you should have saved for a rainy day when you had the chance. It's not up to others to provide for you.
This has nothing to do with mebut the cost of oil to the US consumer. I'm not asking for anything other than a fair market devoid of monopolistic practices.
This has nothing to do with mebut the cost of oil to the US consumer. I'm not asking for anything other than a fair market devoid of monopolistic practices.
The monopoly isn't up to OPEC. If we want to throw in the towel that's on us. Saudi Arabia can less risk selling at a loss than we can.
This isn't simple "free market" competition between private companies, it's an economic war between OPEC nations and US shale oil private companies. We will get gauged if they get their way.
The financial debacle that has befallen Russia as the price of Brent crude dropped 50 per cent in the last four months has overshadowed the one that potentially awaits the US shale industry in 2015. It's time to heed it, because Saudi Arabia and other major Middle Eastern oil producers are unlikely to blink and cut output, and the price is now approaching a level where US production will begin shutting downWhy the US is going to lose the oil price war
It is unlikely that oil prices will increase but the Saudis do have the resources to increase oil production while oil is becoming cheaper.
Sale oil production is very expensive and it is gradually becoming unprofitable. An alternative is to still concentrate on alternative energy supplies that are environmentally friendly.
That's why I said on another thread here in CDF that the US NEEDS to slap a tax on at least OPEC oil to keep it at 50 dollars a barrel if the prices drops below that. OTOH: that tax would stop if oil went above that 50 number, but it'd need to be adjusted for inflation each year.
This isn't simple "free market" competition between private companies, it's an economic war between OPEC nations and US shale oil private companies. We will get gauged if they get their way.
This isn''t the first time and won't be the last. Think of it as a cleansing. Similar to burning the old, dead wood out of a forrest. We will be back drilling and fracking in two years from now, like nothing had ever happened and OPEC will be weaker because of it.
There is no loss here. If things go too low for the extraction of oil it will stop. If it stops, supplies will fall. If supplies fall, prices will go up. If prices go up, the extraction will start again.
That is how it is supposed to work.
Opec, especially the saudis, can continue dumping oil for a good long time. Funny thing, they know that markets can be manipulated.
Note that most regions continue to be profitable below $80, including the Bakken and Eagle Ford formations, two of the most important sources. Much of the Eagle Ford play would still be profitable with $50 oil.
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