Jump to content
Washington Football Team Logo
Extremeskins

Reuters: U.S. to overtake Saudi as top oil producer: IEA


visionary

Recommended Posts

So is oil by the barrel cheaper in the US, for US use, now that we're the largest producer. Cheaper than the global rate? I'm still trying to find this national benefit that oil offer that is greater than any other business of comparable size.

Link to comment
Share on other sites

So is oil by the barrel cheaper in the US, for US use, now that we're the largest producer. Cheaper than the global rate? I'm still trying to find this national benefit that oil offer that is greater than any other business of comparable size.

 

There are advantages, even if it doesn't affect the price of oil a single penny. 

 

Balance of trade, for example, is a kinda big one. 

 

Security of supply. 

 

And it certainly does produce some jobs.  (Although, I strongly suspect, vastly less that the oil industry claims.) 

Link to comment
Share on other sites

There are advantages, even if it doesn't affect the price of oil a single penny. 

 

Balance of trade, for example, is a kinda big one. 

 

Security of supply. 

 

And it certainly does produce some jobs.  (Although, I strongly suspect, vastly less that the oil industry claims.) 

 

I guess it just bothers me that we keep hearing about production of US oil as if there was some huge benefit to the average american citizen.  Like I said before when you hear "oil rich nation" you don't think "well they must have like 40 thousand middle wage jobs from that. Good for them!"

Link to comment
Share on other sites

He's trying to paint Texas as what the whole US would be, if only Republicans were in charge.

It's an ongoing campaign.

 

I have a higher opinion of most Texans than that  :D

 

So is oil by the barrel cheaper in the US, for US use, now that we're the largest producer. Cheaper than the global rate? I'm still trying to find this national benefit that oil offer that is greater than any other business of comparable size.

 

it is cheaper in some ways,and clearly puts downward pressure on the global price

 

what other business is there?.....until a affordable substitute is found we we will pay others to sell it to us or pay Americans and collect US taxes from their efforts all along the way......along with the jobs

 

I am certainly open to other countries selling it to us cheaper....which obviously is not going to happen if there is no domestic supply.(as history clearly shows)

 

maybe you would like a cut from selling all the oil in the Strategic Reserve that has now become largely unneeded?

 

 

choices matter

Link to comment
Share on other sites

Well, yeah, those fun little stats are always out there.

 

My point is that I don't think gas will ever go down. (Until a viable alternative is found and in mass use.)

i don't know that it ever should either.. supply and demand being what it is.

i just don't like it when the supply side artificially prods the demand side.

 

I'm not against drilling or oil use.. we need to use it while we transform into other energies. I'd like to see the customer, us..  benefit from all of this supply. I don't see much competition in this regard among the oil cartels. 

 

I saw a report n TV news about 3 or 4 years ago.. Memorial Day weekend, gas hit 4 bucks..  and no one stayed home. The reporter was literally walking between jammed traffic on the highway asking families if the price affected their plans.. not only did they all say no, they behaved as if going was thumbing their noses at the system..   I remember thinking,,  the oil execs see this, and they know we will pay it. Demand is set.

Gas in this area has rarely been below 3.65 since .. it's usually around 3.75 for me in an outlying area.

the only way to force any competition or lowering of prices is to use less gas. And we can't / don't want to.

 

~Bang

 

Crude isn't just used for gasoline, its used for lots of other products like plastics.  The demand for crude could drop while the demand for gasoline is the same or actually increases.   

Link to comment
Share on other sites

  • 10 months later...

time to reflect....remember peak oil ? :) 
moorechart3%5B1%5D.png

 

we now have a considerable fracklog (wells drilled awaiting fracking) that makes us the swing producer.

 

price goes up and so does production....HERE.

 

How bout them gas prices?

Link to comment
Share on other sites

  • 2 weeks later...

Murica....getting it done

 

 

 

Saudis' Drive To Kill U.S. Shale Has Backfired


Read More At Investor's Business Daily: http://news.investors.com/ibd-editorials-brain-trust/052615-753977-us-shale-efficiency-innovation-up-after-saudi-oil-price-dive.htm#ixzz3bUYinFSd 
Follow us: @IBDinvestors on Twitter | InvestorsBusinessDaily on Facebook

 

The Saudis now openly boast that their strategy to let oil prices collapse was an attempt to kill U.S. shale production. Citing the nearly 60% drop in the U.S. oil rig count since October and the slowing of U.S. oil production, they are claiming a brilliant triumph.

But rather than kill the U.S. shale revolution, the Saudis have only made it more resilient, sped up its rate of technological innovation and capped oil prices for at least a half-decade or more.

U.S. shale producers will survive and grow. American consumers, paying less for gasoline and heating oil, will be the big winners. The Saudis and their friends in OPEC, so dependent on oil-export revenue, will be the clear losers.

The U.S. shale industry is by necessity becoming more efficient than ever. Low oil prices have become an opportunity. The Saudis have lit a fire under producers to trim the fat, deploy new productivity-boosting technologies and zero in on the most productive geology.

Shale's Break-Even Price

Just a year ago, popular opinion seemed to be that shale oil production was generally unprofitable if oil prices fell below $80 per barrel. This break-even point was lower in some formations and far higher in others. But with prices well above $100, producers and oil service companies were simply racing to drill as many wells as possible. They were, as shale pioneer Harold Hamm remarked, running wide open.

However, weak global demand turned the oil market on its head almost overnight. Suddenly, investors saw a market awash with oil — with little economic growth to sponge it up. Prices fell and the Saudis made their gamble. Instead of cutting their production and forcing their OPEC partners to cut with them to prop up prices, they reasoned that U.S. shale production, and other high-cost output like deep offshore, couldn't compete if prices were to fall into the $50 range for any extended period.

The Saudis assumed the $80 break-even price for U.S. shale was a firm floor. They further assumed that the American innovation and ingenuity that had suddenly turned shale rock — long deemed unproductive — into the source of an energy revolution, was complete. They assumed wrong.


Read More At Investor's Business Daily: http://news.investors.com/ibd-editorials-brain-trust/052615-753977-us-shale-efficiency-innovation-up-after-saudi-oil-price-dive.htm#ixzz3bUZ7pcZe 
Follow us: @IBDinvestors on Twitter | InvestorsBusinessDaily on Facebook

Link to comment
Share on other sites

So how much less is the US paying per barrel of good ol American oil compared to the going rate for everyone else?

 

That question makes no sense, no offense.  It's a complicated economic situation which will play itself out.  ;)

 

The only real question is will the US shale industry continue as a viable option for America to get cheaper oil.

Link to comment
Share on other sites

So how much less is the US paying per barrel of good ol American oil compared to the going rate for everyone else?

 

ya would need to allow export of oil to really tell, we only allow export in limited markets

 

how much is America making off of a barrel of oil from here vs imported is the better question.

 

and the fact it has lowered the price is more important.

 

I'm certainly not opposed to other countries selling us oil cheaper

Link to comment
Share on other sites

the ideal is for the US to prove out all these reserves, and demonstrate that extacting them can be scaled up and scaled down quickly.... 

 

and then the saudis/OPEC ^ supply to the point that the price drops enough that American shale isn't competitive.... and the Shale Oil stays in the ground as a super-sized strategic reserve/credible threat to disrupt any future oil-shock shenanigans.

 

I want close to ZERO current US production with giant US proven reserves. 

Link to comment
Share on other sites

the ideal is for the US to prove out all these reserves, and demonstrate that extacting them can be scaled up and scaled down quickly.... 

 

and then the saudis/OPEC ^ supply to the point that the price drops enough that American shale isn't competitive.... and the Shale Oil stays in the ground as a super-sized strategic reserve/credible threat to disrupt any future oil-shock shenanigans.

 

I want close to ZERO current US production with giant US proven reserves. 

 

That proving and demonstrating has largely been done where allowed.

 

The prime shale will probably reach $20 a bbl production costs soon, the advances are coming along quickly   .

 

If they can produce at or below import costs here there is no reason to keep it in the ground here, there is plenty more .

 

The Sauds will tire of this game within a year and have to play by different rules.

 

the Russians will get the next lesson imo

Link to comment
Share on other sites

  • 1 month later...
  • 10 months later...

kind of a double bonus since oil plays on land can be developed by independents  ...as a aside we are outproducing the Saudi's  :P

peak oil  :P

 

http://www.floppingaces.net/most-wanted/texas-fracking-and-the-death-of-big-oil/

 

1. Oil field spending has died. Rig count in the USA is the lowest it has been since 1940.

2. One oil rig controller company these folks worked with saw a year over year drop of 72% in its business.

3. Another company they supplied had their “Cap-X” budget drop from ~$400 million for 2015-2016 to little over $30 million for 2016-2017.

4. One drilling company they supplied went from 120(+) new wells last year to _12_ this year.

5. This supplier sold a lot of copper tubing for 
. That is the drilling of holes in good oil-bearing rock without fracking rock for oil immediately — and here is the new part — 
to take advantage of a new long-flow fracking technique.

While most of the points above are due to the Saudis’ oil price war on Texas frackers. An ex-Big Oil geologist I know put it this way —

The entire reason for the price drop was because the Saudis wanted to destroy fracking in the United States in order to keep us dependent upon them in order to keep them getting a free defense. The Saudis will have to diversify and start spending money on defense before the price goes back up, or they will be in serious trouble.

The technique in Point #5 above marks another “fracking revolution” that is of growing importance to the USA. This new fracking energy revolution will upend the world order as we know it. Political winds willing, America may well be a net hydrocarbon exporter in five to eight years.

Link to comment
Share on other sites

  • 6 months later...
7 minutes ago, twa said:

:rofl89:

 

 

. . . by intentionally selling us oil that's cheaper than we can produce it ourselves.  

 

Fine with me.  Our oil isn't going anywhere.  Let them sell theirs cheap.  

 

In effect, domestic production is keeping prices down, without even having to actually produce it.  

Link to comment
Share on other sites

  • 6 months later...

Maybe we can help Mexico surpass the Saudi's next

https://www.wsj.com/articles/investors-find-major-oil-deposit-in-gulf-of-mexico-1499872771

 

Britain’s Premier Oil PLC, along with partners Talos Energy of Houston and Sierra Oil & Gas of Mexico City, said Wednesday that exploratory drilling in the Zama-1 field, located in the shallow waters of the Gulf of Mexico, had uncovered a “world-class” formation with between 1.4 billion and two billion barrels of light crude oil, or roughly double earlier predictions.

Earlier this year, the group had estimated that there were between 700 million and 800 million barrels in the deposit.

.

The discovery comes on the heels of another significant oil find in the Gulf of Mexico. Italy’s Eni SpA on Wednesday estimated reserves in a field it won in 2015 at around one billion barrels of oil equivalent. Initial estimates had put reserves in that field at about 800 million barrels.

Link to comment
Share on other sites

  • 6 months later...

Oil World Turned Upside Down as America Sells Oil in Middle East

https://www.bloomberg.com/news/articles/2018-02-07/oil-rebounds-as-industry-data-shows-surprise-u-s-inventory-drop

The United Arab Emirates, a model Persian Gulf petro-state where endless billions from crude exports feed a giant sovereign wealth fund, isn’t the most obvious customer for Texan oil.

 
 

Yet, in a trade that illustrates how the rise of the American shale industry is upending energy markets across the globe, the U.A.E. bought oil directly from the U.S. in December, according to data from the federal government. A tanker sailed from Houston and arrived in the Persian Gulf last month.

 

:hi: .....have I mentioned the million barrel spare capacity in the Permian or the latest two large gulf

discoveries?

Link to comment
Share on other sites

Quote

Incredibly, that is as true today as it was in the Permian’s wildcatting heyday, which was roughly from the 1940s to the early 1970s. According to a new study by IHS Markit, a consulting and research firm, the Permian Basin today has between 60 billion and 70 billion barrels of recoverable oil, worth $3.3 trillion at current prices, as Bloomberg’s Joe Carroll noted in a story on Monday.

 
 

To put that in context, since 1923 more than 30 billion barrels of oil have been extracted from the Permian Basin. Yet according to IHS-Markit, it still contains more than twice as much recoverable oil as has been drilled over the last 94 years. Indeed, the greatest oil field of them all, the Ghawar field in Saudi Arabia, is estimated to have the same amount of recoverable oil—70 billion barrels—as the high end of IHS-Markit’s estimate.

 

https://www.bloomberg.com/view/articles/2017-09-27/the-permian-basin-still-has-an-awful-lot-of-oil

Link to comment
Share on other sites

On 7/13/2014 at 3:50 PM, Destino said:

 

I guess it just bothers me that we keep hearing about production of US oil as if there was some huge benefit to the average american citizen.  Like I said before when you hear "oil rich nation" you don't think "well they must have like 40 thousand middle wage jobs from that. Good for them!"

There have been huge benefits to the average American. The Oil industry provides 1.5 million-2 million jobs (contributes to over 7 million if you count distribution related jobs). It has eliminated the ability of OPEC to hurt the average American like they did in the 1970s. It has added more stability to the oil market (Price benefits at gas stations).  Saudi Arabia tried like hell to drive the Fracking industry out of business (and failed)  which gave Americans really low gas prices for 3-4 years.  Yeah there have been lots of benefits.

 

(See this was a really old post I responded to. You may no longer feel that way).

Link to comment
Share on other sites

  • 1 month later...

Archived

This topic is now archived and is closed to further replies.

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...