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  1. #1 Free oil! 
    Senior Member old dog's Avatar
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    Oil Bust: West Texas Crude Price Turns Negative For First Time Ever

    https://www.breitbart.com/economy/20...ges-to-1-cent/

    The commodities futures markets are designed to give producers and consumers of oil, or whatever, some pricing stability to plan their future. Nevertheless, it is dominated by speculators who have no intention of delivering or receiving product and cash out as the contracts come to a close. In the case of crude oil, that would be tomorrow. The fly in the ointment here is that due to the worldwide economic slowdown, nobody has available storage to actually take delivery. There are some highly leveraged speculators who are now in the world of the dirty hurt.

    I am NOT an economic expert but my opinion is that the President should divorce our crude oil market from the rest of the world, i.e. ban imports and buy domestically produced crude to top off our Strategic Petroleum Reserve.

    Don't forget that sub-$1.00 gas will be fun but it won't last and will destroy our oil industry and tens of thousands of jobs.

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  2. #2  
    Power CUer NJCardFan's Avatar
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    I don't see how it would destroy the oil industry. They've been living high on the hog for decades and IMO this is the chickens coming home to roost. Oil companies have been holding us hostage for a long, long time and it's time they get to feel the pinch. If this destroys them then they're run by idiots.
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  3. #3  
    Senior Member old dog's Avatar
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    BIG OIL is a myth. The shale revolution, which has made us energy independent, is made up of dozens of small operations who will go belly up if these low prices persist along with all their jobs. Put them out of business and you will be groveling for Saudi and Venezuelan oil again in the not too distant future.

    Enjoy your revenge while you can.

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  4. #4  
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    Don't forget that sub-$1.00 gas will be fun but it won't last and will destroy our oil industry and tens of thousands of jobs.

    How about hundreds of thousands. For every individual working in the industry there are 7 to 9 more riding on that same train supplying them with tools, materials, vehicles, groceries etc., etc. I’ll reinterate what I’ve already posted on another thread. The US industry is going to be in a world of hurt for some years at best, probably at least two to three but more likely 4-5 or more.

    There will be no “shale” drilling, no new oil prospects, the big company will move their efforts to their overseas conventional operations and OPEC + will rule the roost most particularly Saudi Arabia and Russia as their wellhead cost is $10 a barrel and less. The only possible survivors in the US are the secondary and tertiary recovery folks and the shallow drilling, barefoot completion outfits and neither of them have significant inventory.

    I’ve watched the industry since the 1950’s and it’s never been even close to this bad before. Anyone making any favorable prognostications are pulling them from their nether regions and praying. Every day I see more and more that I got out at the perfect time.

    Enjoy your under a dollar gasoline while you can as you watch food lines, foreclosures, suicides and other lovely results of an industry folding in on itself.

    Here are you some facts NJ. 90% of the oil reserves in the world belong to nations through their national oil companies. There’s your “big oil”. The private/public industry that the local public is screaming about has the other 10% but they’ve been holding us hostage? They are the ones who destroyed the $100 plus oil price through science, hard work an innovation and pulled prices back down to a livable level for both seller and buyer. Now the NOCs are bringing the fight back to our shores and they have the power for a KO with no question.

    Industry supports 9.8 million jobs or 5.6 percent of total U.S. employment, according to PwC. In 2012, the unconventional oil and natural gas value chain and energy-related chemicals activity together supported more than 2.1 million jobs, according to IHS – a number that’s (was) projected to reach 3.9 million by 2025.

    https://www.api.org/oil-and-natural-...dustry-created
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  5. #5  
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    I am NOT an economic expert but my opinion is that the President should divorce our crude oil market from the rest of the world, i.e. ban imports and buy domestically produced crude to top off our Strategic Petroleum Reserve.
    Showing my ignorance of how all of this works. Could the domestic producers scale their output to match the US only consumption? If so, it would be great to be totally disconnected from the world oil market. As I understand it (very little) they need to be somewhere in the $40-$50 per barrel range for a reasonable profit margin. Affordable gasoline is doable with those crude prices. I'd love to see it.

    As far as big oil goes, Fed and State governments charge us more per gallon that the oil companies.

    Of course I am approaching this knowing nothing other than I'm sure it ain't that simple.
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  6. #6  
    Senior Member cadillac shark's Avatar
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    Today's negative price is only on-paper. Today's actual price hasn't happened yet. The President said it's still about $24.50, which is the 5-to-8-week outlook of a market based-on speculation.

    In a non-virus year, the price-per-barrel on March 1st is the price speculators were predicting April 20th's is, or will be.
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  7. #7  
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    The US can produce a lot of oil, but not as cheaply as most other suppliers. We have to have oil prices somewhere around $50 a BBL (IIRC) to make it economical to produce it, while the Saudis can produce it damn' near cheaper than anyone in the world, at a fraction of what it costs us. Russia will produce oil and gas at an unknown cost but will alwasy continue to provide it to our NATO 'partners' in Europe as a means to pry them loose and make them dependent on her.

    To me there is a sound argument to NOT depend heavily on US resources, because oil is a finite resource and sooner or later becomes more scarce and expensive, so strategically it makes more sense to use up as much of everyone else's oil as possible and save all of ours we can for long-term strategic needs...though it is also important to keep ours employed enough so we have the capability to spin up and respond to short-term international disruptions.

    There are many motives and motivations beyond a naked BBL price of crude involved.
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  8. #8  
    Ancient Fire Breather Retread's Avatar
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    Quote Originally Posted by DumbAss Tanker View Post
    ....
    There are many motives and motivations beyond a naked BBL price of crude involved.
    You nailed it there.
    It's not how old you are, it's how you got here.
    It's been a long road and not all of it was paved.
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  9. #9  
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    Quote Originally Posted by old dog View Post
    Oil Bust: West Texas Crude Price Turns Negative For First Time Ever

    https://www.breitbart.com/economy/20...ges-to-1-cent/

    The commodities futures markets are designed to give producers and consumers of oil, or whatever, some pricing stability to plan their future. Nevertheless, it is dominated by speculators who have no intention of delivering or receiving product and cash out as the contracts come to a close. In the case of crude oil, that would be tomorrow. The fly in the ointment here is that due to the worldwide economic slowdown, nobody has available storage to actually take delivery. There are some highly leveraged speculators who are now in the world of the dirty hurt.

    I am NOT an economic expert but my opinion is that the President should divorce our crude oil market from the rest of the world, i.e. ban imports and buy domestically produced crude to top off our Strategic Petroleum Reserve.

    Don't forget that sub-$1.00 gas will be fun but it won't last and will destroy our oil industry and tens of thousands of jobs.
    Totally agree!!
    Should be one more “IMMIGRATION BAN”!😈
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  10. #10  
    Senior Member old dog's Avatar
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    An import ban shouldn't be too disruptive domestically. It's gotta be cheaper to run tankers from the Gulf to the East Coast rather than from the Persian Gulf to the East Coast. California will have to outbid Japan for Alaskan oil; they might even decriminalize fracking.

    The United States Navy, fighting Moslem barbarians since 1801.

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    “There are decades where nothing happens; and there are weeks where decades happen.” Vladimir Ilyich Lenin
    ******************************************
    Democrat evolution: JFK PUT A MAN ON THE MOON AND OBAMA PUT A MAN IN THE LADIES BATHROOM
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