*** THE OIL BUBBLE HAS BURST***

Frankn

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Well, I predicted that when the price of oil fell in the 70's the economy would improve and when it hit the 60's the recovery would increase. It just hit the 50's and I bet this will really boost retail sales and thus the economy. It has been 5 1/2 years since oil has been that low. The balance of oil power has shifted to US. Next year we are on track to being the worlds largest oil producer. This will have the exact opposite effect on the Arab nations that have been draining us with high oil pricing. It is also causing Russia Problems. They will go into a recession next year and their currency is dropping like a lead balloon. Now if our own shippers and manufacturers will back out the added cost they applied for oil price increases, we will have a great summer. Jest my view, Frank five star.png
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bigfoot1

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thanks to the private land oil producers.when conditions change in d.c. the federal lease oil production could come in as well.Imagine a world that is not held hostage by opec and other middle eastern nutjobs.Yup...drill baby drill !!

gonna anger the green crowd tho.
 

UncleMatt

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We have had a glut of oil for years in the US, but its only after OPEC doesn't want to play any more that the domestic price comes down! Why? Because private companies were more focused on fixing a price that would feed their greed than allowing the price to be set by supply and demand as it would be in a free market.
 
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Frankn

Frankn

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We have had a glut of oil for years in the US, but its only after OPEC doesn't want to play any more that the domestic price comes down! Why? Because private companies were more focused on fixing a price that would feed their greed than allowing the price to be set by supply and demand as it would be in a free market.

Actually, I don't think there was a glut. What was happening was that Alaskan oil was being sold to Japan and we were buying Arab oil to fill the gap. Yes you are right though, It was a method of keeping the price up used by the oil companies. Frank five star.png
 

Charlie P. (NY)

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Give it a few years. When the Chinese get as many vehicles per family as we Americans have we'll be facing the same problems all over again.
 

CincinnatiKid

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Drill baby drill. You better not harm any land though. Green Peace is watching.
Peace ✌
 

H-2 CHARLIE

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I believe we are not buying from OPEC , we just started tapping light sweet shale and gas is $1.99 today in Texas .
Oil stocks are low low .
 
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Frankn

Frankn

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Right now the bulk of our oil comes from here, Canada and Mexico. I think the Arabs are going to be gluted! Russia is glutted right now. They have dropped plans for a new pipeline. In fact the bulk of there income comes from the sale of their oil and they are heading into a recession in 2015. The value of there money is dropping like a rock. There mavrick actions are killing their economy. They use to import a large portion of there chicken from here. They prefer the dark meet. Now they have banned the importation of US chicken thus driving up their cost and causing shortages. I don't think Putin took economics. Frank five star.png
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New Orleans Relic

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I believe the fracking industry will be more economically challenged now with this oil plunge, and reducing its production cost, which it must to survive, will more accelerate our savings at the pump.
I'm optimistic now but was also, when gas lines ended in the mid 70's.
But then again, I was in my mid teens. Lol
Ray
 

Mackaydon

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Last month, B of A Merrill Lynch Global Resources put out a chart showing the break even price per barrel of oil as extracted from 12 leading formations where fracking is currently taking place. At $60 per barrel, 7 were losing money. Three more would be losing money if the price fell to $55. The Saudis are able to produce oil for less than $30 per barrel and have ample cash reserves to wage a war for 6 months to a year before they 'retreat'. In essence, U.S. fracking isn't sustainable at current prices. It seems the Saudi plan is to inflict severe damage of the U.S. fracking industry ASAP in order to drive out competition.
Don......
 
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Frankn

Frankn

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Last month, B of A Merrill Lynch Global Resources put out a chart showing the break even price per barrel of oil as extracted from 12 leading formations where fracking is currently taking place. At $60 per barrel, 7 were losing money. Three more would be losing money if the price fell to $55. The Saudis are able to produce oil for less than $30 per barrel and have ample cash reserves to wage a war for 6 months to a year before they 'retreat'. In essence, U.S. fracking isn't sustainable at current prices. It seems the Saudi plan is to inflict severe damage of the U.S. fracking industry ASAP in order to drive out competition.
Don......

Only time will tell on this one. I have read a bit on the fracking process and it's implantation. it's appears a lot of expense could be cut from the process .
I feel cost cutting is in the future for this industry. Frank five star.png
 

New Orleans Relic

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It does bother me that the primary cost is fresh water, which the industry uses or will use billions of gallons annually. And the water used never again rises for ground water. I understand their looking at co2 as a possible future pumping agent. Here in Louisiana they're fighting the environmental clowns for consideration of pumping fresh water from the Mississippi river. I guess if that were to become profitable, numerous states along the river could pump and affect the rivers shipping industry.
I've always understood if it weren't for the muddy Mississippi entering the Gulf at the mouth, the Louisiana, Texas, Mississippi and Alabama coastline would be like Cancun or Key West. Blue water off the Louisiana coast varies wildly from 10 to 80 miles offshore now.
Ray
 

Peyton Manning

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it's all good fellas.
let the saudi's sell it at 30
when they run out there is still the fracking oil to sell!!
in the meantime use your savings from gas well
 

dirtscratcher

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Last month, B of A Merrill Lynch Global Resources put out a chart showing the break even price per barrel of oil as extracted from 12 leading formations where fracking is currently taking place. At $60 per barrel, 7 were losing money. Three more would be losing money if the price fell to $55. The Saudis are able to produce oil for less than $30 per barrel and have ample cash reserves to wage a war for 6 months to a year before they 'retreat'. In essence, U.S. fracking isn't sustainable at current prices. It seems the Saudi plan is to inflict severe damage of the U.S. fracking industry ASAP in order to drive out competition.
Don......

I'm sitting in the Bakken right now in the paper a couple days ago it said their producing oil here at 27 bucks a barrel. Supposedly the cheapest in the country and they are drilling and building full steam ahead with no sign of slowing down.
 

New Orleans Relic

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I'm sitting in the Bakken right now in the paper a couple days ago it said their producing oil here at 27 bucks a barrel. Supposedly the cheapest in the country and they are drilling and building full steam ahead with no sign of slowing down.
Wow!
McKenzie and Mountrail pumping 700,000 barrels a day, double from a year ago, things are good.
$27 is very encouraging.
 

rwd mo

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It still hurts when I was younger I worked for Colorado oil co and pumped DERBY gas at 27 cents a gallon and I was brought up in Kansas city and seen gas at 11-13 cents a gallon to mow lawns and in the 70.s at 80-90 cents a gal. every since things have gotten out of hand about oil and everything else. Hopingly all plastic items will drop at the super market but maybe that's asking too much for all the greedy oil co.s And with the 100 mpg. on you tube systems, like I have on my vehicle maybe things will change for the better rwd mo
 

New Orleans Relic

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And Dubai's 80plus billion dollar GDP increases 5 percent annually.
With 30% hidden revenue.
Building cranes a craning! Lol
 

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