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$20 oil

Geo-TH,In

Geo-TH,In

Well-known Member
This article sounds crazy. What's really going on?

LONDON?Saudi Arabian Oil Minister Ali al-Naimi surprised fellow members of the Organization of the
Petroleum Exporting Countries on Tuesday when he said the kingdom was prepared to let oil prices
slip to $20 a barrel?a level that would strangle some of the group?s own members.
rest of the story
 
Local gas has went up over 50 cents in the last week,don't think it matters what oil is.The oil companies are probably making more now than when oil was a lot higher.
 
Not sure when, but when refineries switches form summer to winter blend and the other way around, some refineries are down for maintenance and prices go up. There seems to be no rime or reason why prices are all over the place.

What is crazy is why some countries are trying to run the price down to hurt other countries oil economies, US included?
 
Geo-TH,In That is the story, but I bought into the fuel industry in 1974, I spent 15 years in the fuel industry, the refinerys may be down for repair but they make sure they have enough in storage to take care of all sales. It was and still is a old ploy to raise prices. That is one of several reasons I got out of the business.
 

I read the article. Some of the producers they want to push out are the shale oil, tar sands, fracking folks. Won't matter to me, if the price stays low, it's better for our economy. It will force some folks to adapt to the low prices, but it will be better for the country as a whole.
 
The goobermint sure is. The low prices mean people are driving more. Taxes are per gallon, so the goobermint is making out like crazy.
 
Fine with me. Let's burn all the foreign oil up and save ours. I know it would take many years, but someday our oil will be the only oil left. But I doubt our grandchildren's grandchildren will ever see it. It's going to take a long time.
 
Why not? Once they have made these types of supplies non-economical to continue going after, and put the businesses involved out of business, they can raise prices to all time levels......and not have to worry about the competition.

Ultimately it's just doing smart business on their part. No, or limited, competition means unlimited profits for the ones left standing......
 
I don't know if it figures in to the Saudi plans, but low oil price weakens both ISIS and Iran. The Saudis would find that to be a good thing.
 
Does anyone else remember back in the early 1990's when we were boycotting Iraqi oil at $12 to $16 per barrel?
 
Does crude affect the price of gas at the pump? No. Crude can drop drastically and it takes forever for the lower price to hit the pump.
Yet, some rumour about a small refiner that sits on the other side of the world can cause the pump price to go up $.20/gallon, like it did here a couple of days ago.
 
Enjoy the low prices while we can. This is the other side of the high prices from a few years ago. I am amazed we are at $20 oil from the highs of over $100. I never would have thought that was possible. The oil economic cycle is really crazy. What I also find interesting is the fracking based oil wells in North Dakota are being turned off but they are still there. So if oil starts pushing $50 a barrel are they just turned back on? Does this create an oil price cap keeping us away from $100 oil?

Countries like Iran and Russia are heavily dependent on oil. So do the wells in North Dakota give us leverage to force them to listen to us? If they don't we start pumping oil and drive prices down. In a lot of ways it seems keeping the North Dakota oil wells pumping some small amount of oil just to keep them active is in our countries security interest. Seems cheaper to subsidize oil wells than build tanks and fighter jets.
 
North Dakota wells are shut down presently, but when oil price goes up to where its practical to frack, they'll be right back on line, driving the prices down again. You can't pump "just a little bit" from those wells- fracking is a process that either needs to go full bore, or not at all. I don't see oil going up much for many years, because of all the reserve supply sitting idle, waiting for higher prices.
 
(quoted from post at 15:46:31 02/24/16) Why not? Once they have made these types of supplies non-economical to continue going after, and put the businesses involved out of business, they can raise prices to all time levels......and not have to worry about the competition.

Ultimately it's just doing smart business on their part. No, or limited, competition means unlimited profits for the ones left standing......
Click to expand...
Not true: remember how fast fracking took off after it was developed? As soon as the price creeps up, the same companies, same people in new companies, or new companies will quickly emerge to take advantage of the higher prices. The oil isn't going anywhere, and when prices get high enough to it will get produced. Saudi Arabia's plan will just not work, they will get to sell lots of cheap oil but the proven methods will not go away. Same thing with deep offshore, the reserves are now proven and they will be produced when economical.
 
it's amazing how just a few short years ago there wasn't very much oil left according to some experts, wonder what band wagon they have jumped on now
 
I can't wait for$100 oil. I invested in oil when it was $50. Lost about20-% last statement.
 
I doubt it. Now they know if they start developing our own oil fields again OPEC and others will crash the prices to put them out of business. Anyway by the time it is profitable to reopen those wells the EPA will have fracking made illegal.
 
dhermesc,
I think OPEC wants to keep the price up, but Saudi and Russia aren't following OPEC rules. Seems Saudi and Russia want to kill our oil producing business. Perhaps hurt other economies too. It's like our US jobs are getting shipped out off to another country and no one in washington is talking very loud about it. Thought Saudi was our friend. geo
 
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