Government Forcing Gas Prices Up So We Go Green?

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Nraman

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It's not working.
Oil touched $36 a barrel this morning.

Only as long as it serves the needs of the handful of countries and corporations that control the world's oil supply.

A diamond wholesaler said this about DeBeers, "they are in the business of restricting the availability of diamonds to control the prices and overcharge the consumers"
Oil is another worldwide monopoly supported by many governments including ours, not that much different than DeBeers.
For decades, we have allowed them to control and even damage our economy, if anybody else had done that, it would be a good reason to bomb them. Money talks.
Unless you actually believe that we don't produce oil in Alaska to protect the caribou.
YMMV
 

okietool

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Oil economics are one of odd. If we get real good at what we do, we flood the market and put ourselves out of a job

Somebody will supply the numbers, but I'm not sure OPEC controls the majority of the world oil supply anymore. That might explain their scorched earth policy right now.

The threshold for profitability that I've heard from different companies in the Permian/Delaware basins is $15/bbl.

There won't be much new drilling at that price, but decently managed companies will survive. IMO
 

dennishoddy

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Oil economics are one of odd. If we get real good at what we do, we flood the market and put ourselves out of a job

Somebody will supply the numbers, but I'm not sure OPEC controls the majority of the world oil supply anymore. That might explain their scorched earth policy right now.

The threshold for profitability that I've heard from different companies in the Permian/Delaware basins is $15/bbl.

There won't be much new drilling at that price, but decently managed companies will survive. IMO

^^^^^^^Pretty much the same way the oil patch has been for as long as I can remember. My wife has been in it for over 40 years, and I spent 22 years in oil related business. Its boom and bust. The companies that continue in the boom years as though it was a bust are still drilling out there. Our nephew is still on rigs and his future is pretty secure.
The companies that buy new jets, etc, during the boom are bust now, and nothing more than a past thought.
 

okietool

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The companies that buy new jets, etc, during the boom are bust now, and nothing more than a past thought.
I kind of agree. If they were buying jets with borrowed money , yes. My company bought an additional executive sized jet, but it was with cash on hand. The there are always people that over commit.

One of the things that fool people are venture capital companies, those aren't necessarily meant to be lifetime operations , and IMUIO they get sold out pretty quick, thereby slanting the numbers a little.
 

Ace_on_the_Turn

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Only as long as it serves the needs of the handful of countries and corporations that control the world's oil supply.

A diamond wholesaler said this about DeBeers, "they are in the business of restricting the availability of diamonds to control the prices and overcharge the consumers"
Oil is another worldwide monopoly supported by many governments including ours, not that much different than DeBeers.
For decades, we have allowed them to control and even damage our economy, if anybody else had done that, it would be a good reason to bomb them. Money talks.
Unless you actually believe that we don't produce oil in Alaska to protect the caribou.
YMMV

There is simply no way you can refer to oil production as a monopoly. There are about 50 countries that produce oil (at least 100,000 barrels a day). And 10 times that many oil companies. Oil producing countries are all over the social/political spectrum. From the US, to China, to Russia, to Saudi Arabia, to Mexico, to Denmark and on and on. Hell, OPEC can't hardly agree on production limits, and it's open secret that all OPEC member nations cheat and produce more than they claim they do. The grey market for oil is the shadiest market there is. Do you think a monopoly would allow oil to drop from $140 to $40?

De Beers was able to control the price of diamonds for so long because they controlled so much of the production and supply of diamonds. Which is no longer true. And because no one needs a 2 carat, flawless diamond.

Comparing oil to diamonds is like comparing, well, oil to diamonds. There is no comparison.
 

JD8

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Oil economics are one of odd. If we get real good at what we do, we flood the market and put ourselves out of a job

Somebody will supply the numbers, but I'm not sure OPEC controls the majority of the world oil supply anymore. That might explain their scorched earth policy right now.

The threshold for profitability that I've heard from different companies in the Permian/Delaware basins is $15/bbl.

There won't be much new drilling at that price, but decently managed companies will survive. IMO

I was told in the $35 range, I had no idea it was that low.
 

Ace_on_the_Turn

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