U.S. Returns Fire in Saudi Arabia’s Oil War

[enter`name`here]

if the sauds want to dump cheap oil on us let them. somewhere between $10 and what we have seen recently there ought to be a market equilibrium price that doesnt decimate us production but still gives the rest of the economy access to reasonably priced energy. The us should not try and artificially raise prices, helping one industry at the expense of every other hardly seems good policy.

 

[Zippyjuan]

Surprised nobody mentioned that if oil drops below a certain point, all the new oil industry (largely fracking-driven) in the US will become uneconomical, and that's all that's really prevented our economy from hitting bottom.

Good point.

$40 a barrel (and staying there) would shut down most fracking which is how the US has reduced their oil imports. They can't produce profitably at that price.

 

[LibForestPaul]

You Betcha... The House of SAUD is in bed with the organized crime syndicates within Washington DC beltway. Special Interest want to attack Russia, Iran, and Venezuela, et al. McCain was the dumbshit to parrot his Zionist master's conversation of "the only industry Russia has is Oil. We need to collapse the Russian economy by targeting their energy sectors." Orchestrated script to attack the real targets, the rest is propaganda to look elsewhere.

This is the EU/Ukraine/Russia/US war then, with Saudi at the front?
Wonder if China is happy?

 

[torchbearer]

The quality of oil from the Saudi's is very poor also.
The Gulf of Mexico oil is rich. Can be used for more processes.

 

[Brian4Liberty]

Several weeks ago, when oil prices started to drop a bit, one of the corporatist shills employed over at CNBC reacted in dismay. "What will happen to the oil companies? Will the energy sector drop? They employ a lot of people, dropping oil prices could destroy the economy."

Of course they conveniently forget about the burden of increased energy costs on pretty much every other area of the economy.

It looks like people are catching on to this media meme (propaganda)...

 

[Demigod]

screw the saudies , let oil go to about $40/ba where it belongs . then the bad guys in the arab world will go back to herding goats as their money dries up .

the oil companies have made trillions of $$$$$$$$$$$$ fron oil that was way over priced , now the goverment wants to keep pumping money to big oil .

there is really no difference between the d's and r's .

i am sick of all this bs .

The Saudis are trying to destroy the oil companies in most of the world and cause unrest in some countries such as Venezuela and Nigeria so they and their friends can get back to having a monopoly.This is not a sustainable price even the UAE said that with this prices they could be solvent for no more than a year.

 

[Madison320]

At first I assumed that low oil prices are always good for the economy, in the long run. But now I think that may depend on whether your country is a net exporter or importer of oil. Suppose you are a strawberry farmer. You are a net exporter of strawberries so high strawberry prices are good for you. But as far as I know we are a net importer of oil so it should be good for us in the long run. In the short run there may be some pain. But I think the whole point is mute because I don't think oil is going to stay where it is unless you think we're going to raise interest rates and start unwinding the Fed's balance sheet. I think it's much more likely that we are going to get more QE and oil prices closer to $200 rather than stay where they are now.

 

[Demigod]

so we should subsidize frackers and big oil by paying more money for oil than its worth , like i said before cheap oil would help everyone in america like lower ult costs , cheaper fuel for cars/truckers/farmers .

we have been paying more (for at least 30 yrs ) for oil products than they are worth , so the frackers and big oil will not make the amount of money they were .

where is the free market on this forum , now we want to keep subsidizing companies because if we don't they will not make enough money and have to slow down production , cheap oil is much better than over priced oil for america economy . also cheap oil will slow down the amount of money the bad guys get from the saudies and others .

if high crude oil price is the answer then lets get the price up to $200/ba ( gas-$9/gal , diesal $10/gal, ult rates double ) then the frackers and big oil could put on 10-20 thousand more people and the companies could make more money , but america would lose at least 1 million jobs , farmers/truckers would go broke . i guess gold/silver may go up about 50% .

When the frackers go bankrupt and a civil war starts in some unstable big oil producing country like Venezuela or Nigeria the price will go up and the Saudis will make even more money because they have gotten rid of the competition.No one will want to invest in new oil producing projects because the Saudis can at any time dump the price and bankrupt them.

 

[Brian4Liberty]

The Saudis are trying to destroy the oil companies in most of the world and cause unrest in some countries such as Venezuela and Nigeria so they and their friends can get back to having a monopoly.This is not a sustainable price even the UAE said that with this prices they could be solvent for no more than a year.

I haven't researched it, but IIRC there were some posts quoting some pretty low costs of production. If cost of production and delivery is low (20$/brl?), they still have some room for profit.

 

[acptulsa]

$40 a barrel (and staying there) would shut down most fracking which is how the US has reduced their oil imports. They can't produce profitably at that price.

That's it, except that $40 figure is way out of date. The powers that be want to hurt Russia enough that they'll decide they can't afford to fight to protect the Ukraine, which is Saudi Arabia's job, but they also don't want the U.S. frackers broken in the process. So, we subsidize the frackers. Create a little Fed funny money, and squeeze the taxpayers for the rest, and Warren Buffet doesn't even have to pay a dime to pull this off.

 

[torchbearer]

That's it, except that $40 figure is way out of date. The powers that be want to hurt Russia enough that they'll decide they can't afford to fight to protect the Ukraine, which is Saudi Arabia's job, but they also don't want the U.S. frackers broken in the process. So, we subsidize the frackers. Create a little Fed funny money, and squeeze the taxpayers for the rest, and Warren Buffet doesn't even have to pay a dime to pull this off.

Shale is break even at $13/barrel at full capacity.

 

[HOLLYWOOD]

With the massive corporate welfare, coutesy of their whore in Washington DC see to it, in times of less profits or apparent loses, the corporate tax welfare takes care of those losses. Writing off every conceivable charge, depreciation, and charge-off. General Electric's 57,000 page tax return on $10 Billion in profits, still got them a $1 Billion welfare check for the IRS.

Fascism Thrives... on steriods in America

 

[ILUVRP]

agree 100% with that statement .