Oil Down Again, Today

[nobodyG17]

I believe in an earlier post I talked about how this has all played out before with oil prices and OPEC trying to destroy the competition.  Here is a great example of a lot more people knowing that to be true as well.  People who can drop 60B on investments might know a thing or two.

http://www.telegraph.co.uk/finance/...s-will-not-destroy-the-US-shale-industry.html

http://www.telegraph.co.uk/finance/...s-will-not-destroy-the-US-shale-industry.html

 

[USACelt]

That would be sad if the USA lets our oil fields fall in to OPEC hands, This might be one of those times that gubberment intervention would likely help. Like the auto bailouts.

 

[nobodyG17]

That would be sad if the USA lets our oil fields fall in to OPEC hands, This might be one of those times that gubberment intervention would likely help. Like the auto bailouts.

Those are US investors waiting to step in and buy everything up.  What OPEC did last time was drop the price of oil so low that US companies could not afford to pump it out of the ground, explore new drilling sites, etc.   Once the companies slowed productions, laid off workers, and capped wells prices went back up and all the companies that still existed had to re hire people, open wells, start up new explorations, etc.  It took a long time and cost a lot of money. 

History repeats itself and they are trying it again.   The article talks about the processes have gotten better/cheaper and we can restart productions again quicker than before.  

The auto bailouts were a terrible idea.  TERRIBLE.   They were some of the most un American things I have ever seen and there are so many lately.

 

[nobodyG17]

Mostly US.  They are US hedge funds and financial groups for the most part, but it's a global economy now anyways.  foreigners will invest in them still.

Just like our portfolios should and do include foreign investments. 

*Could not edit my post above for some reason.

 

[USACelt]

Well there certainly be some bargains in the oil bankruptcies, I would like to think Exxon and the like will hold firm and get the good stuff before it gets to market

 

[akrvbob]

I deleted the insulting post and the next next one like it will get a warning. Let's not go down that road again.

Sorry, but the post quoting it was deleted also but that was the only reason.
Bob

 

[LeeRevell]

Lowest price for gas in my AO (Tallahassee, Florida) is now $1.74.  Diesel is finally dropping a bit too.  Here, diesel remains more stable in price over a longer period than gasoline.