Oil $66 per barrel!!

a reply to: FlySolo

It comes from the center of the earth and will never run dry.

Okay, but if prices for what there is currently available at the surface are manipulated , it can and will rock the delicately balanced financial boat. We're already bailing…

and drowning in debt.

Market forces in a world economy, right?

But hey, "Drill, Baby, Drill!!!!"

a reply to: FlySolo

Dang, learned something new today, thanks for the information and for intrptr too thanks!
Still i wonder if the earth has any affect of the fact we sucking it by such large quantities and burn it to the air.

a reply to: romilo

anything is ok in moderation.

a reply to: romilo

Well, If the earth has been around for billions of years, then we really don't know how much oil we've used.

Big difference between how much easy oil there is, and all oil.

There are strong rumours that the Falklands shelf has oil under it, enough to really make it worthwhile drilling, then the Falklands will really be worth the Argentinians invading, again, and with the state of the British royal navy, might very well be worth doing it...

originally posted by: snarky412
a reply to: Xtrozero

One thing we've noticed and is coincidental in it's timing, is that since ISIS has taken over many of the oil wells and is selling it dirt cheap, that in turn is causing Saudi Arabia to drop their prices
Hence, countries are getting oil cheaper than they have in a long while

So indirectly, this may possibly be a silver lining to the ISIS takeover of the oil wells

That's just my personal thoughts however


Did notice that this is the first time in a long, long time that the fuel prices did NOT go up on Thanksgiving weekend
Normally they are like hotels....prices go up on holidays

ISIS has not been able to sell oil in awhile. The US and coalition bombed all their oil fields. The reall reason is the US producing way more oil than ever before. And that is because oil prices were so high that producing shale oil in the US became profitable. So OPEC is willing to take a beating for a year or so to try and drive the shale producers out of the market because they also can not take low prices. The big lose in all this is Russia. Russia did what it could to try and get OPEC to cut production. However the last time that Russia agreed to do that with OPEC Russia never cut and reaped the profits so OPEC is more than happy to see Russia get hurt bad.

a reply to: MrSpad

( "ISIS has not been able to sell oil in awhile. The US and coalition bombed all their oil fields. The reall reason is the US producing way more oil than ever before. And that is because oil prices were so high that producing shale oil in the US became profitable. So OPEC is willing to take a beating for a year or so to try and drive the shale producers out of the market because they also can not take low prices. The big lose in all this is Russia. Russia did what it could to try and get OPEC to cut production. However the last time that Russia agreed to do that with OPEC Russia never cut and reaped the profits so OPEC is more than happy to see Russia get hurt bad." )

This must be a real balancing act by OPEC . The loss of revenue from shale oil coming on-line versus the loss of revenue from dropping oil prices . One thing is for certain , while we enjoy the cheap prices we aren't using our own resources .

originally posted by: Bone75
I seem to recall Obama saying the reason gas prices were so low when he first took office was because the economy was on the verge of collapse. So now I'm left wondering... was he full of crap then, is he full of crap now, or is he just always full of crap?

President Obama is a politician and not a particularly good one at that. He's always full of crap.

originally posted by: romilo
a reply to: FlySolo

Dang, learned something new today, thanks for the information and for intrptr too thanks!
Still i wonder if the earth has any affect of the fact we sucking it by such large quantities and burn it to the air.

The abiotic theory is one theory, it isn't proven as fact. We can create oil with heat and pressure so we know the conventional model is atleast possible but in the quantities needed it takes billions of years so it's not exactly easy to test.

originally posted by: hutch622
This must be a real balancing act by OPEC . The loss of revenue from shale oil coming on-line versus the loss of revenue from dropping oil prices . One thing is for certain , while we enjoy the cheap prices we aren't using our own resources .

The US just keeps producing and selling though, we're currently the largest oil seller in the world. The Saudi's are trying to drive down prices but if they let the price go back up we can just start producing again. By driving the price of oil down they have to commit to keeping it down.

originally posted by: Aazadan

The US just keeps producing and selling though, we're currently the largest oil seller in the world. The Saudi's are trying to drive down prices but if they let the price go back up we can just start producing again. By driving the price of oil down they have to commit to keeping it down.

This is something that really makes me worry about the ME going up like a powder keg. Many OPEC nations (like Kuwait) pay their citizens a stipend that is directly tied to the profits of selling oil.

Kuwait and other oil producing nations also farm out nearly all of their labor to 3rd world laborers, while their citizenry sit idle. If the profits drop below a certain (albeit unknown) number we could theoretically see the lowering, or altogether stopping of the free checks.

Now imagine millions of really pissed people, with no marketable skills, suddenly not getting free stuff. OPEC has ham-stringed their populace and will be walking a tightrope to ensure that they turn enough of a profit to keep the coffers full and their citizens satiated with blank checks.

a reply to: Lil Drummerboy

the way i understand the reason of gas doesn't keep up with the price per barrel step for step is that. the gas at the pump is made from oil that was priced higher.

in other words that gas was made from oil that was 85 dollars a barrel, the oil being sold now they have not taken possession of it yet, and has not entered in the the production of gas.

oil and trading of it is a convoluted mess. it was done that way on purpose. and then you have speculators involved and that just makes it worse.

ETA: another thing that effects price is the transportation, the further away from the refinery the high the cost.

a reply to: Wildmanimal
Ethanol will clog up your innards, especially in smaller engines. I use gas without ethanol.And I use sea foam as oppose too stabil. As far as the oil thingy most have been saying what I've been reading. I'm still paying 2.94 a gallon. The prices go down real slow here.

originally posted by: Bone75
I seem to recall Obama saying the reason gas prices were so low when he first took office was because the economy was on the verge of collapse. So now I'm left wondering... was he full of crap then, is he full of crap now, or is he just always full of crap?

Then it was true (ish.) The world economy was slowing down, so even with a weak dollar, oil prices were coming down.

Now, however, the economy is heating up and preparing to launch, but the USD is very strong. $66 is worth more today than it was a year ago. Also, US production has been ramping up, nearing record highs and predicted to surpass Saudi Arabia in the near future.

There is an oil glut, possibly on purpose to hurt Russia, but either way, if oil prices stay low for long, production will throttle back. If they're lower while the dollar is higher, however, it shouldn't affect production. Who's hating dumping the "petrodollar" now?

IMO, high gas prices were a major contributor to crashing the economy. I believe low has prices will help to usher in the next economic boom.

a reply to: dogstar23

the U.S. has already surpassed saudi arabia.
and is expected to remain there until 2030.

The U.S. will remain the world’s biggest oil producer this year after overtaking Saudi Arabia and Russia as extraction of energy from shale rock spurs the nation’s economic recovery, Bank of America Corp. said.
U.S. production of crude oil, along with liquids separated from natural gas, surpassed all other countries this year with daily output exceeding 11 million barrels in the first quarter, the bank said in a report today. The country became the world’s largest natural gas producer in 2010. The International Energy Agency said in June that the U.S. was the biggest producer of oil and natural gas liquids.

U.S. oil output will surge to 13.1 million barrels a day in 2019 and plateau thereafter, according to the IEA, a Paris-based adviser to 29 nations. The country will lose its top-producer ranking at the start of the 2030s, the agency said in its World Energy Outlook in November.

both above from,
U.S. Seen as Biggest Oil Producer After Overtaking Saudi Arabia

and this one from last year.

The Energy Information Administration is reporting today that “Saudi Arabia was the world’s largest producer and exporter of petroleum and other liquids in 2012, producing an average of 11.6 million barrels per day (bbl/d) and exporting an estimated 8.6 million bbl/d (net).” The United States (“Saudi America”) was the No. 2 petroleum-producing country last year with an average output of just over 11 million bbl/d (see bottom chart above).
However, based on international monthly oil production statistics from the EIA currently available through November 2012, the United States surpassed Saudi Arabia’s petroleum output in November (see top chart above). Thanks to the significant increases in shale oil production in North Dakota and Texas, total oil output in the US expanded by more than 7% between August and November, while output in Saudi Arabia fell by 4% during that period. Those trends brought “Saudi America’s” petroleum output in November (11.65 millions bbl/d) above Saudi Arabia’s production (11.25 million bbl/d) by 400,000 barrels per day, and is the first time in more than ten years (since August 2002) that the US has produced more petroleum products than Saudi Arabia.
Although there are certainly variations in oil production that could mean that the US won’t continue to out-produce Saudi Arabia in every month, the upward trend in US oil output will continue, and the EIA predicts that the US will be the world’s largest petroleum producer within the next few years. The EIA forecasts that US petroleum production will continue to increase from the current level of 11.65 million bbl/d by another 11.5% to about 13.0 million bbl/d in the 2018-to-2020 period.
MP: The rise of the US to become the world’s largest petroleum producer in November is another important milestone in America’s new era of energy abundance, and reflects the importance of the breakthrough, revolutionary extraction technologies (hydraulic fracturing and horizontal drilling) that have brought a true shale energy revolution to “Saudi America.” “Carpe oleum”

US was world’s largest petroleum producer in November, surpassing Saudi Arabia for first time in ten years

a reply to: Xtrozero

Oh Well!

Goes to show everyone just how powerful a worldwide Monopoly is.

OPEC could do this for years and still have plenty of money left over.

Fracking in the USA is all but a distant memory.

originally posted by: spy66
This oil thingy is not good for Europe or the US. There are a lot of jobs Connected to the oil sector. Many of these workers will be let of soon if this keeps up.

Maybe the fracking industry will pull for government subsidization.

a reply to: Realtruth

Fracking in the USA is all but a distant memory.

I find this doubtful. When fracking becomes not profitable due to market prices the equipment will be mothballed, wells might be capped, and the plays shut down until such time as prices return to a viable operating level. It's a normal part of the business regardless of the specific technique.

Some people are getting fracking confused, fracking doesn't mean getting oil out of the ground. Fracking is a technique rarely used to increase the rate of oil/gas out of a well hole. You pump a high pressure mixture of water deep into a small , isolated area of the ground, creating 'cracks' into the target rock layer. These cracks make it easier to extract the gas and oil.

www.safetytrainingservices.net...

You sometimes get contamination mainly through a bad cement and casing job, and sometimes run-off from human error on the surface. Mainly when you drill you add casing into the hole and when you add it, you pump cement into the casing which holds the casing in place with the rock. Then you drill again, add casing, pump cement, and so on.

This is well below the water aquifers. It's VERY hard for these fluids to rise through a mile of scattered impenetrable rock layers. Where the leak comes from if it were to leak into the aquifer, is the bad cement job of the steel casing. There are more requirements and precautions taken now to make sure that there are no leaks.

I know well service companies have special cement labs now, which are unique to every job. Companies such as BP, Exxon, Shell, etc., have requirements for what they need the cement to do. When they decide to do a well, they will have special guidelines they need met, send it off the a cement lab such as Halliburton, and they use a series of tests to make sure that unique formula meet the strict requirements.

The people I've talked to said the price drop is either a punch to US shale production (because we are going to be self reliant soon) or to hurt Russia, or it's two birds with one stone.

originally posted by: Lipton

originally posted by: Aazadan

The US just keeps producing and selling though, we're currently the largest oil seller in the world. The Saudi's are trying to drive down prices but if they let the price go back up we can just start producing again. By driving the price of oil down they have to commit to keeping it down.

This is something that really makes me worry about the ME going up like a powder keg. Many OPEC nations (like Kuwait) pay their citizens a stipend that is directly tied to the profits of selling oil.

Kuwait and other oil producing nations also farm out nearly all of their labor to 3rd world laborers, while their citizenry sit idle. If the profits drop below a certain (albeit unknown) number we could theoretically see the lowering, or altogether stopping of the free checks.

Now imagine millions of really pissed people, with no marketable skills, suddenly not getting free stuff.

OPEC has ham-stringed their populace and will be walking a tightrope to ensure that they turn enough of a profit to keep the coffers full and their citizens satiated with blank checks.

The Gulf states have massive cash reserves they will have no problem. Nigeria, Russia, Venezuala on the other hand could be in real trouble.

originally posted by: 727Sky
a reply to: Xtrozero

S^F and I agree... I still wonder if some of this stuff is a consortium of interests that wants to destroy Russia's ability of modernization and help expedite the demise of their economy ? Ties right into the sanctions IMO.

It sure does. This has a few different directions. Middle East oil is driving it, so they could be working to increase the pain of sanctions, but I think it is purely greed on their part to try and monopolize the oil market.