Economy 52,858 Posted November 24, 2015 Share Posted November 24, 2015 http://money.cnn.com/2015/11/23/investing/saudi-arabia-opec-revolt-oil-prices/ members of Opec especially venezuela, Iran and Nigeria have exchanged heated words at the latest meeting Saudi Arabia refuses any cuts in oil production to lift prices and wants cartel to continue to max out production to destroy more expensive competitors US shale, Canadian Oil Sands, and Deep Sea Drilling are all feeling the squeeze The Saudis maintain that lifting prices will only benefit competitors and in the end OPEC will only be left with lower market share. Most OPEC members however say cutting peoduction is necessairy to balance the market! Link to post Share on other sites More sharing options...
Solitaire 902 Posted November 24, 2015 Share Posted November 24, 2015 Praying US and Canada keep flooding the market with oil, I'm living for these low prices, it's nice to not have to budget for gas and instead being able to just get gas without worrying about the cost. - Previously Sycothisis Link to post Share on other sites More sharing options...
Economy 52,858 Posted November 24, 2015 Author Share Posted November 24, 2015 52 minutes ago, Solitaire said: Praying US and Canada keep flooding the market with oil, I'm living for these low prices, it's nice to not have to budget for gas and instead being able to just get gas without worrying about the cost. Unfortunately at these prices it can not... on average US Shale needs $60/barrel to be profitable Canadas Oil Sands as massive as the reserves are, on average need $70/barrel to be profitable deep sea drilling by the UK, Norway and Brazil also require about &70/barrel to be profitable so unfortunately these peices cant continue for long as supply will just gradually come off market US shale peoduction has already fallen by 500,000 barrels a day. Here in Canada new projects have been shelved and production will flatten by 2020 if these prices remain Link to post Share on other sites More sharing options...
Solitaire 902 Posted November 24, 2015 Share Posted November 24, 2015 2 hours ago, Economy said: Unfortunately at these prices it can not... on average US Shale needs $60/barrel to be profitable Canadas Oil Sands as massive as the reserves are, on average need $70/barrel to be profitable deep sea drilling by the UK, Norway and Brazil also require about &70/barrel to be profitable so unfortunately these peices cant continue for long as supply will just gradually come off market US shale peoduction has already fallen by 500,000 barrels a day. Here in Canada new projects have been shelved and production will flatten by 2020 if these prices remain Well hopefully the governments of both countries will continue to encourage oil exports in different ways; at least so that prices won't go above a certain price. I'd imagine that at a certain price the profitability of North American oil will balance that of foreign oil and that's where the price will settle... But if the internal instability of OPEC continues this situation could change any day - Previously Sycothisis Link to post Share on other sites More sharing options...
Economy 52,858 Posted November 24, 2015 Author Share Posted November 24, 2015 12 minutes ago, Solitaire said: Well hopefully the governments of both countries will continue to encourage oil exports in different ways; at least so that prices won't go above a certain price. I'd imagine that at a certain price the profitability of North American oil will balance that of foreign oil and that's where the price will settle... But if the internal instability of OPEC continues this situation could change any day Its hard. The US has an oil export ban so all oil produced in the US has to be consumed in the US. You can only export refined products And here in Canada we dont have pipelines for a diversed market cuz no one wants one built in their area including many Provinces within Canada u may have heard of Keystone only in America but theres 3 other massive proposed pipelines within Canada including 1 even larger than Keystone thats suppostu bring oil all the way to Eastern Canada Here in Canada were stuck woth a had deal... Were exporting our oil to the US the only place with pipeline so wereforced to sell at discount and Canadian oil is only getting $30/barrel right now but in eastern half of Country (where most of our population is) were forced to buy oil at full brent prices ($45/barrel right now) cuz we have no pipeline connecting to western Canada where all the oil is RIP off tbh the only advantage Canada has over everywhere else is that Oil sands run on huge cycles (5-7 years to set up an oil sands field but up to 50 years to depleate it) so short term price swings dont affect our productiom as much as every other type of oil including shale Link to post Share on other sites More sharing options...
Solitaire 902 Posted November 24, 2015 Share Posted November 24, 2015 2 hours ago, Economy said: Its hard. The US has an oil export ban so all oil produced in the US has to be consumed in the US. You can only export refined products And here in Canada we dont have pipelines for a diversed market cuz no one wants one built in their area including many Provinces within Canada u may have heard of Keystone only in America but theres 3 other massive proposed pipelines within Canada including 1 even larger than Keystone thats suppostu bring oil all the way to Eastern Canada Here in Canada were stuck woth a had deal... Were exporting our oil to the US the only place with pipeline so wereforced to sell at discount and Canadian oil is only getting $30/barrel right now but in eastern half of Country (where most of our population is) were forced to buy oil at full brent prices ($45/barrel right now) cuz we have no pipeline connecting to western Canada where all the oil is RIP off tbh the only advantage Canada has over everywhere else is that Oil sands run on huge cycles (5-7 years to set up an oil sands field but up to 50 years to depleate it) so short term price swings dont affect our productiom as much as every other type of oil including shale That sucks I live in Texas and my hometown was one of the towns that Keystone was going to go through on its way to refineries in Houston. They even cleared out strips of woodland and bought land from land owners in the area; some extremely liberal people were arrested for camping out in trees to prevent them from being cut down and to prevent the pipeline from being built The US can't even export to Canada? I'd imagine that the rule of no exports will help at least the US keep prices down as we have the potential to produce all the oil we need, it's just that process won't kick in until selling our own oil to ourselves isn't profitable until a barrel of oil hits $60-$70; it'd be nice, I think, to share that safety net with our closest ally in an effort to reduce the cost of living and promote consumer spending for residents of both nations & in the process boosting our economic growth. (really hope that all made sense... I just woke up from a nap lol) - Previously Sycothisis Link to post Share on other sites More sharing options...
Economy 52,858 Posted November 24, 2015 Author Share Posted November 24, 2015 12 hours ago, Solitaire said: That sucks I live in Texas and my hometown was one of the towns that Keystone was going to go through on its way to refineries in Houston. They even cleared out strips of woodland and bought land from land owners in the area; some extremely liberal people were arrested for camping out in trees to prevent them from being cut down and to prevent the pipeline from being built The US can't even export to Canada? I'd imagine that the rule of no exports will help at least the US keep prices down as we have the potential to produce all the oil we need, it's just that process won't kick in until selling our own oil to ourselves isn't profitable until a barrel of oil hits $60-$70; it'd be nice, I think, to share that safety net with our closest ally in an effort to reduce the cost of living and promote consumer spending for residents of both nations & in the process boosting our economic growth. (really hope that all made sense... I just woke up from a nap lol) Yes the US can export oil to Canada. We are the only exeption some of our oil comes from the US, but most comes from middle east. With 170 Billion barrels Canada has the worlds 3rd largest reserves. But we only have the infrastructure to sell in to some areas of the US so were selling our oil at discount to the US instead of supplying our own Nation or even selling to more customers to get full price :/ Link to post Share on other sites More sharing options...
freebit 6,264 Posted November 24, 2015 Share Posted November 24, 2015 Ugh, this has been so terrible for the oil industry here in the U.S. That drop in price has been so ****ing tragic. As much as I'm annoyed at Saudi Arabia, their stance is understandable and I do blame shale producers, they really messed with the whole system when they started overproducing it. They lost all chill for a while there. I'm not sure how it can ever get to a decent price per barrel ever again. A huge war would probably have to happen or something. Link to post Share on other sites More sharing options...
Economy 52,858 Posted November 24, 2015 Author Share Posted November 24, 2015 1 hour ago, freebit said: Ugh, this has been so terrible for the oil industry here in the U.S. That drop in price has been so ****ing tragic. As much as I'm annoyed at Saudi Arabia, their stance is understandable and I do blame shale producers, they really messed with the whole system when they started overproducing it. They lost all chill for a while there. I'm not sure how it can ever get to a decent price per barrel ever again. A huge war would probably have to happen or something. Depends on demand growth should demand continue to increase, higher prices will be needed for production to remain if demand does peak around 2020 as some suggest, prices may never go above $100/barrel again (adjusting for inflation in todays value) Link to post Share on other sites More sharing options...
Luc 4,776 Posted November 26, 2015 Share Posted November 26, 2015 This could also be a political move because Iran and Saudi Arabia... Link to post Share on other sites More sharing options...
Economy 52,858 Posted November 26, 2015 Author Share Posted November 26, 2015 4 hours ago, Luc said: DontThis could also be a political move because Iran and Saudi Arabia... Dont doubt it. But i think from a business perspective it makes sense also Link to post Share on other sites More sharing options...
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