OPEC To Force Oil Prices Low For Years

[Economy 52,842]

If that means I get to continue to pay around $2.00 a gallon for gas I'm all for it. 

temporarily. But once competitors are destryoed, for some time ull have higher proces AND no major oil industry

 

that is until high cost producers come back (if opec allows which they peobably will have to cause they cant supply whole world)

[Economy 52,842]

The pump price for gasoline and commercial diesel is a double edge sword.  

Meaning that sectors of the economy that don't produce or make a profit from oil and gas production benefit...i.e. retail,manufacturing,service industry, and somewhat construction.

On the flip side, a lot of economy is generated by oil profits.  Some construction, and all oil/gas production service related companies, transportation ect. benefit from those profits. 

Any part of the economy that makes money benefits some other aspect ... they are all interrelated ...

 

in the case of the US whos still a net importer of oil, low prices should be good over-all

 

but if oil was just $20/barrel higher shale could thrive so, just a little higher may be worth it.

[Woolfsmck 2,763]

in the case of the US whos still a net importer of oil, low prices should be good over-all

 

but if oil was just $20/barrel higher shale could thrive so, just a little higher may be worth it.

I think the net result is more of a balanced distribution of revenue. 

Hi energy costs benefit the energy sector leaving most of other sectors in a pinch.

[Economy 52,842]

I think the net result is more of a balanced distribution of revenue. 

Hi energy costs benefit the energy sector leaving most of other sectors in a pinch.

yeah for the US i think $65 to $70 per barrel would be perfect

 

its high enough to let shale continue to boom, but not high enough to choke other industries

 

Here in Canada low oil price threats have proven over-blown. We recorded a surprise surplus last year and this year we already got $5 Billion surplus in first quarter due to higher than expected Corporate revenue

 

Also the recession hasnt resulted in any net job losses. Its only cause value of oil exports shrank so much it lowered GDP but it didnt actually affect the economy outside Alberta.

 

In fact, for the first time in 7 years were getting good numbers on non-energy exports suggesting the lower currency from oil collapse and cheaper manufacturing costs has a silver lining. Proof we dont really need oil industry

[Woolfsmck 2,763]

yeah for the US i think $65 to $70 per barrel would be perfect

 

its high enough to let shale continue to boom, but not high enough to choke other industries

 

Here in Canada low oil price threats have proven over-blown. We recorded a surprise surplus last year and this year we already got $5 Billion surplus in first quarter due to higher than expected Corporate revenue

 

Also the recession hasnt resulted in any net job losses. Its only cause value of oil exports shrank so much it lowered GDP but it didnt actually affect the economy outside Alberta.

 

In fact, for the first time in 7 years were getting good numbers on non-energy exports suggesting the lower currency from oil collapse and cheaper manufacturing costs has a silver lining. Proof we dont really need oil industry

That's good news ... Some of the OPEC countries economies are tied directly to oil sales and little else. 

Canadian economic diversity is a definite stabilizing factor.

[Economy 52,842]

That's good news ... Some of the OPEC countries economies are tied directly to oil sales and little else. 

Canadian economic diversity is a definite stabilizing factor.

i think it is... other sectors can pick up the slack when it fails... many other oil dependent Nations dont have anything else to rely on

 

on the other hand it did generate a lot of revenue and jobs during the crisis so it is good to have it in the mix i think

 

Its too bad were such high cost producers though and oil sands take so long to develop. Canada can never have a quick oil boom the way the US did. Its always gonna be a more gradual steady increase

 

Well we have shale reserves as well, some new ones they discovered recently could be pretty significant... but not to the extent America does. Some have called the US the new swing producer because shale can react to market conditions quickly!!!

 

Canada could never be a swing producer because as massive as the oil reserves are, the projects are too long term to work that way