US Oil Production And OPEC

There will always be winners and losers in any area depending if the price goes up or down. With any natural resource high prices are all well and good for the nation that is mining it but it has a long negative flow on effect to every one else (increased cost of production, lower returns [depending on industry and resource], higher cost to consumer, leaves less funds to be invested else where etc etc).

Cant say it is the case for all Americans but from the comment's around the internet relating to the price of Oil and OPEC Americans need to stop seeing this as a direct attack on America through economic means but rather look at it as a challenge, Something to encourage productivity and development of more cost effective means of producing said product. From an outside perspective America (no offense intended to any individual or the nation as a whole) all too often will complain when foreign government's give a leg up to their local industry, drive down their dollar through artificial means or some other measure yet appears all too often to bring in a tariff, tax break or some other measure to prop up American companies/Industries.

 

As an American, I Can't say that I see falling oil prices as an "attack" on America. Since this is the first time I have been able to fill my tank for under $30. If this is an "attack", I say "Bring it on! This is nothing. You really want to hurt me, make me pay $20 to fill my tank. Now that would really hurt!"

Now, will this hurt the "fracking" industry...Most certainly, maybe even drive most them out of business...However, the tools and the technology will still be there, and that is not going to go away. So, when the oil prices start creeping back up, "fracking" is still waiting in the wings.

On the Plus side, I only hope that OPEC keeps dropping the price of oil and puts that damn Ethanol industry out of business.

Personally, "Industry" finds it "cheaper" to move to where producing an item is cheap, as opposed to developing cheaper ways of producing a product at home. Simply because that is only one part of their total cost, there's also building overhead, unions, utilities, taxes, etc. Also, developing "more cost effective means" of production, usually requires a huge outlay of cash for the development of said technologies, and only the very well established companies are capable of this. However, compounding the problem is the fact that some "manufacturers" might not want to remain in manufacturing, too many headaches for little return. Thus, the company will keep it's "Research and Development"(R&D), less headaches and far more profitable, and sell off or shutter it's manufacturing portion.

No offense taken, but your position is an odd one.

Americans are not allowed to complain about seemingly "unfair" Foreign business practices, nor is their government allowed to utilize these same practices against foreigners. But for Foreigners doing it to the Americans, that is OK?

Is this not an example of the Pot calling the Kettle black.

 

Was hoping our contributions - oilsands, new fracking techniques- would allow less reliance on foreign oil...
If we are not members of OPEC, why are we bound by their set price of oil. Couldn't we require our free trading countries to buy (blood/ war /religion free) oil.

 

Filled up for $2.16 a gallon yesterday... Three months ago when I left Alaska, the price was $3.68 a gallon. Earlier in the year I was paying $4.05 a gallon.

When I hear people complain that fuel should be more expensive because of the environment and yadda, yadda, yadda, I want to punch them in the face. I know old retired people living on $1,800 month that have to heat their homes with fuel oil. The price difference means they can have a steak on Saturday night instead of hamburger helper.

It's all supply and demand. OPEC can't maintain an artificially high price when fracking has opened up new sources. The frackers may lose money while the price is low, but that cheaper commodity means people have more money in their pockets for other things. Money is still being spent so it's all good.

 

Those new supplies do allow for less reliance on foreign/OPEC oil. However, both are very expensive, and are only financially viable when the price of oil is high. When the price of oil is low, neither oilsands nor fracking can compete with straight crude.

Because OPEC has an excess of production that the non-OPEC countries do not. If OPEC want to raise the price of oil, they cut production, and if they want the price to fall, they increase production.

Sure, but it would be a fool's errand, just like with diamonds.
http://www.bbc.co.uk/news/business-16027011

 

Nice new avatar KB. Cheers.

Not so good, here in AB. We need higher prices in order to fund our economy. ..Prediction: something will happen that causes oil prices to rise drastically. Buy while the prices are low...Our Oil Sands provide a safe, reliable supply when there is instability.

 

It's money in the bank.

 

They've been saying that for years.
But thinking (hoping), Oil Sands and the new U.S. push are really putting pressure on OPEC. Let's see what happens in Venezuela. We can wait longer -because we don't only rely on oil, and thankfully not much religion.
Small benefits of non OPEC oil by large producers:
(not many) Beheadings, stonings, suicide bombings, war, riots (except non related), helicopter barrel bombs, ebola, dictators, unchecked environmental pollution etc etc.
Buy Canada.

 

Today,the oil price is between 48.24 and 52.99 $ a barrel,far below the 85 $,and, there is no crash of the US oil boom ..

 

Price per barrel can vary greatly when it comes to fracking from say, von noobie's $85 per barrel to as low as $60 a barrel, or even $30 a barrel, it all depends on the shale formation being fracked.

While there has been no crash, the fracking industry does appear to be starting a downward turn. IIRC, the fracking industry was expected to survive for several months of low oil prices before it started to feel the pinch. So, I would say that it would be far to soon to see any kind of crash.

 

Apologies, Earlier posts where far to vague on my part.

$85 break even was for the most costly producing wells.

http://www.bloomberg.com/news/2014-10-17/oil-is-cheap-but-not-so-cheap-that-americans-won-t-profit-from-it.html

 

what's that dollars to gallon?

 

maybe I missed it, but isn't there oil in the Gulf of Mexico, but US laws won't let us drill for it?

 

There's plenty of oil in the Gulf, but Obama stopped drilling after the BP oil spill. It's started back up, but not to levels before the spill.

 

This also has to do with the drop in oil prices. A year ago when the price per barrel was over $100, 33 of 34 rigs were under contract for production. Now, when the price is down around $50 per barrel, only 19 of 34 rigs are under contract for production.

 

That's correct, but I was just answering Bronk7s question as to whether or not there was any oil in the Gulf. Also most fracking has ground to a halt in the region. Where I own property too (ouch).

 

That is a difficult one, Since that post the dollar has fallen from about 88c to USD to 78c. At the time would have been around 51c USD to a gallon (if my math and Google help is correct =)), While the fall in the dollar would push the price up some what the even greater fall in the oil price has still pushed prices way down, In Melbourne Australia some prices are as low as 34c USD to a gallon.

 

whoa! 34 US cents per gallon?? we're paying about 2$ now, was about 2.80$ much thanks..you guys are better/faster/''stronger'' at finding /searching/''smarter' than I am