Posted by lfure on January 20, 2015 at 17:14:22 from (68.169.254.14):
In Reply to: $5 gas by end of 2016 posted by GeneMO on January 20, 2015 at 08:18:48:
You guys must have missed the real reason crude oil prices have dropped so dramatically. What I read a week ago is that Saudi Arabia is pumping oil like mad to drive down the price of crude. The increase in oil production in the U.S from fracking and oil production in other country's has reduced their market share. They flooded the market to run other country's out of the oil business, for now that is. The big guess is how long Saudi Arabia can keep this up. What will hurt U.S companies, and the other countries mentioned above, is that they will still have to service their debt. And they can't do that on oil that is priced below their profit margin. They will have to go out of business and file for bankruptcy. Just hope that they, the U.S oil companies don't come crying for a bailout.
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