Oil Prices

So then, now that oil is 76 dollars a barrel and dropping...

In the past on the OG, I kept arguing that our lack of domestic output was leaving us at the whims of OPEC. I blamed Obama's constant denial of new drilling permits as one of the reasons oil prices were over a hundred dollars a barrel.

All the classic OG obama white knights predictably came running to his defense, and all of you said,

Obama has NOTHING to do with oil prices. No president does. OPEC sets the oil prices and it has nothing to do with America's production output. Your so dumb.


Predictably, in the long run I was proven right (as usual). As our shale output has increased and that trend shows its momentum, OPEC prices have been dropping in response. They even started to panic and wanted to price-fix by cutting output. Instead, market reality kicked them in the balls and Saudi Arabia has just dropped their prices further, saying, "America's shale output has become too powerful to overlook."

They also hope to get prices below what would be profitable for shale producers in America. Either way, WE WIN.

Please explain yourselves and submit your apologies here.

And btw, approve the Keystone pipeline already you fucken dumbasses. We never had something so fucking good offered to us in the history of this country before.

I heard it will drop below $70/barrel soon.
Business is good with shale production right now.

I paid $2.65/gallon today, the effect is real Phone Post 3.0

Holy shit, Economics 101 is real

SalaciousCrumb - The irony is, shale production isn't profitable if oil gets below $65 or so, and they will dramatically cut back. Phone Post 3.0

Yeah but the point is that the price will have to hover just below where it's profitable for shale. In other words, cheap. The American consumer WINS.

...and the less money you're throwing at other countries the better as well. It's an endless supply of win.

Philip Proctor - 


Holy shit, Economics 101 is real


No shit right?

Try telling that to the pseudo-intellectual neo-libs on the OG.

The election is over. Prices will come back up soon. Phone Post 3.0

Fuck the Keystone pipeline. Railroad stocks are booming because of the volume of crude they're moving.

That pipeline either drops off oil literally in our back yard, or it goes to the west coast to ship to China.

Canada did all the work of processing it out of their oil sands and wants to deliver beautiful cheap crude to our doorstep and obama has been fighting it tooth and nail.

"Stop trying to give us your safe convenient oil Canada! Cut that shit out!"

-obama

Ignorance is bliss Phone Post 3.0

I didn't read any of that but your chicken recipe is always a hit at parties. Thanks for that brother. Phone Post 3.0

The oil is still moving. It's coming east and south via rail. Two new refineries are opening in NJ by 2016 that wouldn't have existed without the rail service.

Again, with the surge in value of railroad stocks, that pipeline can never happen, and we'll be just fine.

Burt Reynoldz - I didn't read any of that but your chicken recipe is always a hit at parties. Thanks for that brother. Phone Post 3.0

Holy shit that's an old one! From the original and deleted Ramen thread I believe...VU

IronHands - The oil is still moving. It's coming east and south via rail. Two new refineries are opening in NJ by 2016 that wouldn't have existed without the rail service.

Again, with the surge in value of railroad stocks, that pipeline can never happen, and we'll be just fine.

So long as that oil comes here and a pipeine isn't built to the coast for Chinese sale, I'm ok with that.

...though a pipeline to us is obviously safer than rail.

Moke - 
SalaciousCrumb - The irony is, shale production isn't profitable if oil gets below $65 or so, and they will dramatically cut back. Phone Post 3.0

Yeah but the point is that the price will have to hover just below where it's profitable for shale. In other words, cheap. The American consumer WINS.

...and the less money you're throwing at other countries the better as well. It's an endless supply of win.

Sort of. What's really happened (which is manifesting itself in shale oil) is that technology has unlocked resources we previously couldn't access. This is just the first of what will be a series of EOR (Enhanced Oil Recovery) schemes over our's and our children's lifetimes.

The doomsayers who were predicting the collapse of the oil market fail to understand that we only produce 10% to 15% of the total reserve and that the rest stays in place. When the need becomes great again we'll see another shift and more technology will allow for greater production which will shift the price.

I think (and this is really just a slightly educated guess) that the reason the Saudi's didn't act sooner was that they underestimated the resevoir volumes that shale would bring on. I think they also underestimated how quickly the U.S. would ramp up production on these reserves.

I agree with the keystone setiment. Failure to move on this will see Canada look at the other two major lines (either to the east or the west) and make the keystone a less attractive option.

Moke - 
IronHands - The oil is still moving. It's coming east and south via rail. Two new refineries are opening in NJ by 2016 that wouldn't have existed without the rail service.

Again, with the surge in value of railroad stocks, that pipeline can never happen, and we'll be just fine.

So long as that oil comes here and a pipeine isn't built to the coast for Chinese sale, I'm ok with that.

...though a pipeline to us is obviously safer than rail.

A pipeline is 1000 miles of juicy target. That wreck in Canada (which I assume you're referring to) was a combination of a cheap railroad with a 1 man crew, idiocy in choosing to leave the train on such a steep grade, and stupidity on the part of the fire department in shutting down the locomotive and not notifying the railroad immediately. 47 people died in an unnecessary wreck, but such an incident is an anomaly.

The DOT and FRA have responded to that wreck with extremely stringent regulations. Considering how many millions of tons of hazardous materials are moved by rail in North America every year, the safety record is phenomenal.

Toki Wartooth - 
Moke - 
SalaciousCrumb - The irony is, shale production isn't profitable if oil gets below $65 or so, and they will dramatically cut back. Phone Post 3.0

Yeah but the point is that the price will have to hover just below where it's profitable for shale. In other words, cheap. The American consumer WINS.

...and the less money you're throwing at other countries the better as well. It's an endless supply of win.

Sort of. What's really happened (which is manifesting itself in shale oil) is that technology has unlocked resources we previously couldn't access. This is just the first of what will be a series of EOR (Enhanced Oil Recovery) schemes over our's and our children's lifetimes.

The doomsayers who were predicting the collapse of the oil market fail to understand that we only produce 10% to 15% of the total reserve and that the rest stays in place. When the need becomes great again we'll see another shift and more technology will allow for greater production which will shift the price.

I think (and this is really just a slightly educated guess) that the reason the Saudi's didn't act sooner was that they underestimated the resevoir volumes that shale would bring on. I think they also underestimated how quickly the U.S. would ramp up production on these reserves.

I agree with the keystone setiment. Failure to move on this will see Canada look at the other two major lines (either to the east or the west) and make the keystone a less attractive option.

I don't disagree at all. I didn't want to get too complicated in the opening post. But yes, despite obama slashing drilling permits and restricting ever more land from speculation, our technology has surpassed him. We are cranking our output DESPITE him. Thank God for American ingenuity.

U S and A!

Mayfield - The election is over. Prices will come back up soon. Phone Post 3.0
This. Phone Post 3.0

Xavier23 - 
Mayfield - The election is over. Prices will come back up soon. Phone Post 3.0
This. Phone Post 3.0

Quoted for future reference.

In Phone Post 3.0

presidents dont set the price of oil or gas.

the saudis lowered the price to put pressure on Putin. supply is way up and demand has come down.

just shows that oil is priced how certains countries want it to be.

more drilling it installing that pipeline would not help right away if at all imo.