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Representatives of the leading members of the Organisation of Petroleum Exporting countries have been saying for weeks they would not pump less oil no matter how low its price goes. Saudi Arabian Oil Minister Ali Al-Naimi has said even $US20 per barrel wouldn't trigger a change of heart.Why the US is going to lose the oil price war
The best solution for the US is to develop alternatives to oil and develop more and more products that have no use of oil.
What effect this will have will be just the opposite effect. As the price of oil and natural gas continue to spiral downward, there will be less interest in developing any alternatives.
Why would the market do so when oil and gas are so incredibly cheap? Market forces will dictate when alternative energy production comes to the fore front. We don't have an oil ministry here...
You don't simply shutter things when you have billions of dollars invested.
It has happened for decades.
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You have been getting screwed over for the last 6 or 7 years by the same state owned foreign companies you are supporting and they will be screwing you again. The only reason we are having this discussion is because of competition from US companies.
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.
I remember the pain that so many had at an artificial price of over $100 a barrel. I was told that it was because of fundamentals. Well if so, so is $40 barrel.
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What effect this will have will be just the opposite effect. As the price of oil and natural gas continue to spiral downward, there will be less interest in developing any alternatives.
Why would the market do so when oil and gas are so incredibly cheap? Market forces will dictate when alternative energy production comes to the fore front. We don't have an oil ministry here...
You are probably right but it isn't how it should be. This is the short sighted problem, not some relief to the street.
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.
What exactly are we going to lose? It seems like a win to me if energy prices go down.
Continuing turmoil in the ME will prevent SA from continuing to dictate oil prices. It may work temporarily, but when another war breaks out, and it will, the west will now be protected from high energy prices.
Representatives of the leading members of the Organisation of Petroleum Exporting countries have been saying for weeks they would not pump less oil no matter how low its price goes. Saudi Arabian Oil Minister Ali Al-Naimi has said even $US20 per barrel wouldn't trigger a change of heart.Why the US is going to lose the oil price war
The best solution for the US is to develop alternatives to oil and develop more and more products that have no use of oil.
Well the game is almost over. Opec has been raping us for years and the US Federal and State Gov. has always looked at gas as a tax revenue. I am by no means a tree hugger, but because of the high prices our cars have become more efficient just over the last 5 years.
Prices will stabilize and these same producer will have to adjust to the new norm, just as Opec did when oil was over 100.00per Ba.
I am glad we have lower cost fuel, which leaves me more disposable income for the everyday needs of life.
Yet it is not just the oil market that will suffer declines but other agencies such as banks attached to it as well:
“Oil deflation may lead to widespread bankruptcies and defaults for various non-financial companies, which will in turn precipitate financial instability events in banks tied to those companies. The collapse of financial assets associated with oil could also have a further ‘chain effect’ on other forms of financial assets, thus spreading the financial instability to other credit markets.” (The Economic Consequences of Global Oil Deflation, Jack Rasmus, CounterPunch)
No, it's thanks US producers who apparently you will throw under the bus.
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