The Oil crisis - not like the last one

[JohnR]

In the '70s, OPEC cut production to raise prices, to punish the west for supporting Israel. Now they're overproducing to cause global chaos. Both times, done on purpose. No natural phenomenon caused it, the hatred of Muslims caused it.

http://www.bloomberg.com/news/articl...more-migration

[muggsy]

These $1.60 per gallon gas prices are just killing me. I liked it a lot better when I was paying $3.20 per gallon. How dare those Muslims.

[JohnR]

It's nothing to be glib about. Have other prices come down? Everything is transported by oil-burning vehicles. Gas goes down, no one passes along the savings. The article I linked talks about mass migration from Africa due to oil's collapse. Where to they migrate to? Adios, Europe; nice knowin' ya. Mexico and Venezuela are oil producers too...

And there's this: http://money.cnn.com/2016/01/18/inve...gan/index.html

Oh, and coal really is going bankrupt. Just as planned.

[muggsy]

It could be that the prices on goods haven't come down because the sellers are trying to recoup their losses from when oil prices were high. There's always a bit of a lag, because no one knows what tomorrow might bring.

[JohnR]

I think that's true. My strategy is to use up all of OPEC's oil, then tap our own. Let them beg for our oil.

[muggsy]

That sounds like a good strategy to me, John. We need to go back to burning coal, too.

[Longitude Zero]

It could be that the prices on goods haven't come down because the sellers are trying to recoup their losses from when oil prices were high. There's always a bit of a lag, because no one knows what tomorrow might bring.

Partially true but even is gas became free those that use it and have to factor it in as a business cost would NEVER drop it from consideration. The Saudis badly miscalculated the resilience of shale oil and tar sands oil. They thought they could out last the world in a race to the bottom. Now they are genuinely concerned about loosing their collective keisters. Currently the USA is the worlds largest oil producer. JohnR I agree with you and have for years. Let's use up theirs before we drill for ours. All the dunces talking about "peak oil" have crawled back onto their insane asylums and shut up.

[Longitude Zero]

We need to go back to burning coal, too.

We never stopped burning the low sulpher Wyoming coal. Only the nasty Appalachian coal is being used less.

[JohnR]

We should be filling up the strategic petroleum reserve, and expanding it, with cheap oil. How stupid are we for not doing that? Buy it all, drive the price back up and save our own oil industry. If they want a price war, let's give it to them.

[Longitude Zero]

Buy it all, drive the price back up and save our own oil industry. If they want a price war, let's give it to them.

An occasional crashing of the oil industry is an overall good event. It drives out the marginal producers and forces those that remain to modernize and increase efficiency. I live in the middle of the oil patch and once worked in the industry. The Saudies and OPEC lost dictatorial control of pricing 10+ years ago and now with shale oil and the oil sands it is a race to the bottom. Sure a lot of folks will get hurt but the shakeout will better the industry overall. The primary benefactors will be non-OPEC producers since the OPEC hegemony will be all but eliminated.

[Ken L]

We never stopped burning the low sulpher Wyoming coal. Only the nasty Appalachian coal is being used less.

Wyoming coal production is way, way down also. A couple of mines are looking at shuttering, and the biggest one is only shipping 40% of what it was just a few years ago.

[JohnR]

Here ya go, this agrees with me. Buy low, sell high. This is war, not some random market glitch. http://globaleconomicwarfare.com/201...ne-our-future/

[jeepster09]

That sounds like a good strategy to me, John. We need to go back to burning coal, too.

I think we should burn a lot of rubber too....

[jeepster09]

Here ya go, this agrees with me. Buy low, sell high. This is war, not some random market glitch. http://globaleconomicwarfare.com/201...ne-our-future/

Damn....now ya tell me...I have always bought high and sold low! I always could move lots of stuff but i'm always broke...hmmm. I may have to re think things

[Armybrat]

These low prices are artificial and won't last forever. In the meantime Texas will lose another 20,000 well-paying jobs in the Oil Patch this year - on top of the 30,000+ last year. That means a lot of dependent businesses are going to suffer too - oilfield support, cafes, drive-in markets, etc. You know, the little guys.
Plus look for a wave of large banks going belly up because of defaulted oil loans, which will run into the tens of billions.
Same goes for all the oil producing states.

BHO is happy about it too.

My personal gross income was fixin' to double or triple this year, but Continental resources shut down the good producing wells they recently completed in North Dakota - they refuse to sell it at $25/barrel, and will wait fot the price to rise. It won't hurt us as we hadn't gotten any royalty checks yet, but the added income would be nice (could buy a few more nice guns).

But said oil patch states will undoubtedly see a big increase in fancy foreclosed $45,000 pickups & $40,000 bass boats up for sale.