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| Are the Saudis blinking?; sort of a form of "price fixing" | |
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| Tweet Topic Started: Aug 12 2016, 07:40 PM (270 Views) | |
| Banandangees | Aug 12 2016, 07:40 PM Post #1 |
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Fire & Ice Senior Diplomat
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Attempts to fix prices upward. Oil Rises After Saudi Call for Action on Prices Crude prices rose 4% overnight to a three-week high on signs of an output cap August 12, 2016 wsj
"A collective production cap." Isn't that the opposite of what the Saudis attempted early on..... to continue production in light of the U.S. increase in production via fracking which would produce an oil glut, lowering prices, forcing U.S. frackers out of business. That hasn't proven fruitful for the Saudis, or Venezuela, or Russia, with the main economy of SA and Venezuela being oil. It's like the Saudis shot themselves in the foot and took Venezuela with them. Now they want to "collectively" fix production downward forcing prices upward and are looking for "collective bargaining" with other OPEC nations to save themselves. But, wouldn't that just put frackers back in business? I don't see oil staying at the low $40s but I don't see it going back to the $100s either. The problem with SA and Venezuela, they've depending almost solely on an economy based on oil. Oh well, easy come, easy go.... the life of welfare states.
Edited by Banandangees, Aug 12 2016, 07:42 PM.
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| Berton | Aug 12 2016, 09:16 PM Post #2 |
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Thunder Fan
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Oil companies are already starting to ramp up their drilling as they have been able to cut drilling costs and find ways to get even more production out of a completed well. Keep in mind that there are a lot of wells which were drilled but not completed. We can still bring them on line. |
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| Stoned | Aug 12 2016, 11:20 PM Post #3 |
Fire & Ice Senior Diplomat
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It has proven quite fruitless for the US. Frackers are, generally, in the tank. |
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| Berton | Aug 13 2016, 01:55 AM Post #4 |
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Thunder Fan
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Wake up and smell the roses you dummy. They are ramping up drilling. |
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| Pat | Aug 13 2016, 02:04 AM Post #5 |
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Fire & Ice Senior Diplomat
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Oil field action is ramping up and the production will follow. Each ear there have been improvements in technology and a maturing knowledge base. Remember, massive scale fracking is a new de. I suspect within this year the American industry will surpass it's recent record production. The markets are a game any little fart is reason to raise or lower pricing. Edited by Pat, Aug 13 2016, 02:05 AM.
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| Brewster | Aug 13 2016, 02:25 AM Post #6 |
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Fire & Ice Senior Diplomat
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Celebrating how your country is managing to succeed in expanding 19th century technology is like Britain during the Industrial Revolution celebrating a new way to dig up rocks.
Edited by Brewster, Aug 13 2016, 03:05 AM.
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| tomdrobin | Aug 13 2016, 02:42 AM Post #7 |
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Fire & Ice Senior Diplomat
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I think the Saudi's strategy kind of backfired on them. We shall see how it all works out. I like those low gas prices. But, that is detrimental the economies of states and countries that depend on the oil revenue. And, it provides less incentive for alternative energy development. I get a big chuckle out of conservatives pointing to Venezuela as an example of the failure of socialism. While it is true that pure socialism hasn't been shown to be as productive as capitalism. The problem with Venezuela was they became to dependant on the oil wealth to sustain their economy. They quit growing food etc. to feed themselves, they could just import it with the oil money. Well when the oil money dried up they were screwed. |
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| Pat | Aug 13 2016, 03:01 AM Post #8 |
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Fire & Ice Senior Diplomat
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http://www.zerohedge.com/news/2016-08-12/mexicos-legendary-oil-hedging-desk-quietly-preparing-next-plunge check this out Tom. |
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| Stoned | Aug 13 2016, 03:03 AM Post #9 |
Fire & Ice Senior Diplomat
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Fracking costs vary enormously. Todays price $44.40 ![]() Pick a chart, any chart and you will see that the cost of most frackers is prohibitive https://www.google.com/search?q=shale+oil+breakeven+price+2015&biw=1408&bih=753&tbm=isch&tbo=u&source=univ&sa=X&ved=0ahUKEwjdsP7cxbzOAhVMSSYKHSzMBwAQsAQIKw&dpr=1 |
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| Pat | Aug 13 2016, 03:05 AM Post #10 |
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Fire & Ice Senior Diplomat
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http://www.zerohedge.com/news/2016-08-12/oil-slides-after-biggest-rog-count-rise-dec-2015 Here are some charts for you. |
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