*** THE OIL BUBBLE HAS BURST***

Treasure_Hunter

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The amount of work here is unbelievable. Any young person with nothing holding them down is a fool not to be here.

I have a friend and one of his sons working in the oil fields of Minot ND....

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UncleMatt

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Only 4% of US domestic wells are profitable at $80/barrel. The rest are all profitable down to $42/barrel!

Bakken Shale Oil Is Profitable at Over $42 a Barrel | Watch the video - Yahoo Finance

Which explains why US producers are continuing to drill new wells, even at the current lower price of oil.

Despite oil below $60 per barrel, US oil production continues to increase

The US oil industry is doing fine, it just won't be raping the US consumer the way it has been for so many years. We now see the true price of oil when the market isn't being manipulated, and it is nowhere near $100 a barrel! And there was simply no reason for it to ever have been that high, other than corporate greed, or it would be higher right now. If pervasive demand from developing third world countries was responsible for the cost being over $90/ barrel for so many years, then where is that demand right now? If it is so very pervasive as claimed, it would still be holding the price up much higher than it is now. But it isn't. As well, in the past when there was even a whisper of trouble in the ME, the price was jacked up right away. But since ISIS has started threatening the ME, the price has FALLEN instead!

So NOW we see the real reasons oil prices were high! Not due to forces of supply and demand in the free market, but due to the greed and market manipulation of oil companies and countries.
 
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Treasure_Hunter

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Treasure_Hunter

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And all the other references to the arabs ain't ? But you're the boss so I concede. You just like pickin on me, but that's OK lol.

Mike

Mike your post contained a political link and you know it, you even acknowledged it in your post. If you have issue with moderation take it to pm...

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Frankn

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I have said it in many past posts that our inflation was caused by oil not the housing market. I have seen estimates, years back, that showed the actual cost of Arab oil, in developed fields, was $5 a bbl.

Water used in fracking is only used in the initial first step of opening up the fissures, I think they are now reclaiming it so fresh water usage should drop, not rise.
Just my observations. Frank five star.png
6 06-1 Yellowstone 063.jpg Maybe they are reclaiming the wells also, LOL
 
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Frankn

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LI Tom

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The cost of production varies among the various the various US producers,however at $55 a barrel,a lot more are not going to make a lot of money.Most producers are hedged out for the next for the next 3-6 months,so low prices need last a while to squeeze them.A big problem is that many are funded in the junk bond arena ,and they are selling off big time last few weeks so the cost for future funding is going way up,plus much of the world is going into recession,hence slowing global demand.It will be interesting to see this play out.
 

Mackaydon

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VIENNA – The basket of crude oil used as a benchmark indicator by the Organization of Petroleum Exporting Countries has dropped to $41.50 a barrel, the OPEC Secretariat announced on Wednesday.
Don,........
 

pgfhgs

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The cost of production varies among the various the various US producers,however at $55 a barrel,a lot more are not going to make a lot of money.Most producers are hedged out for the next for the next 3-6 months,so low prices need last a while to squeeze them.A big problem is that many are funded in the junk bond arena ,and they are selling off big time last few weeks so the cost for future funding is going way up,plus much of the world is going into recession,hence slowing global demand.It will be interesting to see this play out.

Look for the bottom on oil near or about 36.00 my best guess is it bounces around the 40-55 range in the interim. If we get to 36.00 buy oil futures or look to double leveraged UCO leaps or long calls. Currently UCO is at 8.20 and change, if it drops near $7.00 go long with 5.00 calls or lower for 2017. you are buying some time value but the premium is small deep into the money!
 

BC1969

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Look for the bottom on oil near or about 36.00 my best guess is it bounces around the 40-55 range in the interim. If we get to 36.00 buy oil futures or look to double leveraged UCO leaps or long calls. Currently UCO is at 8.20 and change, if it drops near $7.00 go long with 5.00 calls or lower for 2017. you are buying some time value but the premium is small deep into the money!

In layman's terms..does that mean I should start buying oil stocks now or later ?

BC
 

redbull

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I thought about dropping some $ into futures, but I think it's going to be quite volatile for the rest of 2015/mid 2016 to say the least.
At a certain point (if it's not there yet) the fracking companies here in the US will burn through their cash reserves (fracking costs in the US are a lot higher then other areas)eventually and I'm sure opec already realizes this since they are playing ball persay with the frackers on production output prices are going to go back up to near where they were since in the end investors what their returns to and will starting complaining about the low returns. IE frackers halt/slow production
 

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