Economy 52,842 Posted October 12, 2014 Share Posted October 12, 2014 http://www.vox.com/2014/10/7/6934819/oil-prices-falling-russia-OPEC-shale-boom-gasoline-prices As mamy Countries that had geopolitical conflicts have gotten issues more resolved and started pumping more oil again, the oil boom in unconventional reserves in US, Canada and Venezuela... Oil production is spiking As the world economy stagnates, consumption is barely rising and thus prices may keep fallingThis could have major implications particularly for the US oil industry as its many of its producers require $80/barrel to make operations profitable Canadas expensive oil sands operation require about $65 to $70 a barrel depending on the company... and could also take a serious hit if prices keep falling North American Benchmark is currently around $85/barrel Link to post Share on other sites More sharing options...
TSUNAMI 21,297 Posted October 12, 2014 Share Posted October 12, 2014 Profitable means with 300% profit considering real expences of oil explatatipn. Link to post Share on other sites More sharing options...
Economy 52,842 Posted October 12, 2014 Author Share Posted October 12, 2014 Profitable means with 300% profit considering real expences of oil explatatipn. well it is expensive. Oil sands in Canada or Shale oil from rocks in the US requires a lot more labor and supplies because its a much more extensive operation than the liquid oil you just pump from the ground In one way its good because it provides more jobs and helps the economy more... But its also less profitable and they get squeezed when prices drop Also dont forget the oil industry pays billions of dollars a year in taxes Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted October 13, 2014 Share Posted October 13, 2014 http://www.vox.com/2014/10/7/6934819/oil-prices-falling-russia-OPEC-shale-boom-gasoline-pricesAs mamy Countries that had geopolitical conflicts have gotten issues more resolved and started pumping more oil again, the oil boom in unconventional reserves in US, Canada and Venezuela... Oil production is spikingAs the world economy stagnates, consumption is barely rising and thus prices may keep fallingThis could have major implications particularly for the US oil industry as its many of its producers require $80/barrel to make operations profitableCanadas expensive oil sands operation require about $65 to $70 a barrel depending on the company... and could also take a serious hit if prices keep falling North American Benchmark is currently around $85/barrelThe energy sector , drilling and crude oil will definitely be impacted....On the flip side, refiner's and consumers will benefit ... like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Economy 52,842 Posted October 13, 2014 Author Share Posted October 13, 2014 The energy sector , drilling and crude oil will definitely be impacted.... On the flip side, refiner's and consumers will benefit ... if prices drop too low, the US should definitely look into lifting the export ban while prices WW are dropping, the North American Benchmark is considerably below world average! If Prices were to fall another $10/barrel many US producers would become unprofitable at Our Benchmark but not other benchmarks Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted October 13, 2014 Share Posted October 13, 2014 if prices drop too low, the US should definitely look into lifting the export ban while prices WW are dropping, the North American Benchmark is considerably below world average! If Prices were to fall another $10/barrel many US producers would become unprofitable at Our Benchmark but not other benchmarks Winter is just around the corner, and another Global Warming Polar Vortex episode should help increase demand again plus convince all the liberals that Global Warming is good, socialism is bad...8-) like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Economy 52,842 Posted October 13, 2014 Author Share Posted October 13, 2014 Winter is just around the corner, and another Global Warming Polar Vortex episode should help increase demand again plus convince all the liberals that Global Warming is good, socialism is bad...8-)yeah but... Winter has a bigger impact on natural gas not as much on crude oil Cheaper Gas in North America is giving us more competitiveness. But that will be gone if producers cant produce it to begin with... Then we wont have cheaper prices OR the increased competitiveness of cheaper energy Im not saying lift the ban right now... But soon it might make more sense to lift it than not to lift it Link to post Share on other sites More sharing options...
Echo 327 Posted October 13, 2014 Share Posted October 13, 2014 Yay for low gas prices. Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted October 14, 2014 Share Posted October 14, 2014 http://finance.yahoo.com/news/falling-gas-prices-could-40-181400952.htmlFalling Gas Prices Could Provide $40 Billion Boost to EconomyWhat I sayn' like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Economy 52,842 Posted October 14, 2014 Author Share Posted October 14, 2014 http://finance.yahoo.com/news/falling-gas-prices-could-40-181400952.html Falling Gas Prices Could Provide $40 Billion Boost to Economy What I sayn' it could. no one denied the benefits of cheaper energy for the economy but over the long term if prices drop too much and producers in the US cut supply... prices in the US will rise again and you wont have the production OR the cheaper prices considering the delaying factors of productuion increasing again once prices rebounded what u need is a balanced price. Prices have no yet dropped enough to make US shale unprofitable... but if they drop even $5 to $10 more many companies will become unprofitable and production will take a hit! Link to post Share on other sites More sharing options...
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