Why Are Gas Prices So Low?
- Thread starter Cpappa27
- Start date
budlover13
King Tut
There is an excess of oil on the global market and OPEC refuses to cut production to maintain a stable price.
The speculation that I have read is that they are doing this to drive oil prices below $60 a barrel and keep them there long enough to shut down shale oil fracking production in North America because it's only profitable at prices above $55 a barrel.
Again, speculation.
The speculation that I have read is that they are doing this to drive oil prices below $60 a barrel and keep them there long enough to shut down shale oil fracking production in North America because it's only profitable at prices above $55 a barrel.
Again, speculation.
ChesusRice
Well-Known Member
Most fracking is still profitable at 40 a barrel
But then again. It's a win win win situation.
If you shut down fracking here. The oil will still be there when the price goes up or the overseas oil runs out
Abiqua
Well-Known Member
and the bond markets are leveraged so as oil drops per barrerl, your interest rate skyrockets while your returns are shit. Shale oil is looking for more like $100 to break even, when calculating the debt, not just development....@$140 last year they were fat pigs....
Also no one is going to mention russia and china about to evade the dollar standard?
Also no one is going to mention russia and china about to evade the dollar standard?
budlover13
King Tut
Very true. I'm not too upset over it for that very reason.
budlover13
King Tut
Evading the US dollar has been in the works for a while now. Hell, imo, that's the reason Qadafi was murdered.
Abiqua
Well-Known Member
Umm just to point out Saudi's well have been running for 75 years or so, if not longer and still producing. There are still Iraqi fields almost as large [2x] just coming online as of 2013......they will wait it out for decades.....
then shale oil will become like the endless amounts of coal we have, but don't use because it aint worth it....
budlover13
King Tut
Just waiting for our economic bubble to pop again...
ChesusRice
Well-Known Member
Had nothing to do with him being on the terrorist list for 25 years
blowing up our passenger planes
and the target of regime change since Reagan?
ChesusRice
Well-Known Member
win win win still
Abiqua
Well-Known Member
Well of course, not only were Libya and Iran the only two independent states WITHOUT a roschscum backed Central Bank, but Qadafi was debt free and had just built the Great Man-Made River, google it, not all wars are fought over oil in the desert, it seems....
budlover13
King Tut
Then throw in the Saudi king dying and the prince being 79 AND next door to Yemen who just got taken over by ISIS.....
budlover13
King Tut
And they convinced him to give up his nukes....Well of course, not only were Libya and Iran the only two independent states WITHOUT a roschscum backed Central Bank, but Qadafi was debt free and had just built the Great Man-Made River, google it, not all wars are fought over oil in the desert, it seems....
Abiqua
Well-Known Member
and......the link is more sour than 9/11 and "terrorists working alone"
I mean we are going to cover for Reagan while he was out letting the CIA run the drug trade, mmmkay....
and started this little group called "the database" or "the list" aka Al qaeda
Just call me Tim Osman!
ChesusRice
Well-Known Member
Check your facts on the Yemen coup
budlover13
King Tut
We shouldn't be in the business of regime change, imo.
ChesusRice
Well-Known Member
I was Off the coast of Libya in 86 helping enforce the no fly zone
ChesusRice
Well-Known Member
We should leave states like Afghanistan to prosper?