It’s Getting Crude Out There

 

1. For the Russians Ole Buggs may be right.

   Posted by 0007       12/14/2015  at  10:14 PM  



2. I read enough of these oil analytics this weekend to make my eyes bleed and my conclusion is this; The US guys who went on margin to frack are going to fade away but all those wells are already drilled and the Bigs who bought those guys out will sit on them till the world tries to cause a Bump, at which time those parked wells will pop back online.
   With all the Shit States,Russia,Iran,Venezuala etc. reeling from the long last year of $50 oil, going full tilt to maintain some kind of revenue stream guarantees that supply is going to stay sky high.
   I also read it only take 9 days to poke a new frack well these days. That makes it a lock that our US drillers will need no time at all to ramp up even more if some world shaking event crops up over the next year to dry up all the oversupply out there now.
   So ya, for now the market is going into elevator mode till things shake out but $80 oil is not going to be happening again for a long long time.
   Enjoy the glut.
   

   Posted by Rich K       12/16/2015  at  12:55 AM  



3. I more or less agree with Rich, and I think this will wind up screwing with OPEC and Russia far more than it will us on the national level. It’ll certainly put the hurt on indie Frackers or other small market entrepreneurs and I don’t want to underestimate that, but the cheap prices will be a benefit to us, and trying to run at a glut of low prices for a long period of time is going to hurt them.

   Especially if and when this dries up within the time people still have the living expertise and knowledge of how to Frack here in the States. Which it almost certainly will.

   I’m just sad the Iranian dictatorship will benefit from this. To them having exports on the cheap may be a considerable chunk of money over not having them at all.

   Posted by Turtler       12/16/2015  at  09:05 AM  



4. The ragheads can pump as much as they like, they are not going to hurt the US. In the long run “our friends” the Saudis are f****d. If Russia can ride this out the Saudis will end up in deep shit. Iran hates them so has no incentive to limit production. The rest of the OPEC clowns are now between the devil and the deep blue sea. Cut production and get nothing or pump as much as they can and get something. Yes some US frackers will shut down, but they will soon start up when the price rises, rinse cycle repeat. The Saudis have to bribe their worthless population to keep them from rising up and doing an ISIS. Karma is going to bite the sand people on the arse.

   Posted by LyndonB       12/16/2015  at  01:59 PM  

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