Saudi Oil

[hurleyjd]

Do any you posters think the Saudis can break the American companies doing the fracking by keeping the oil prices low. Looks like we are in an oil war. Different articles say that the oil producers can make it here with the existing wells at 60 dollar oil. The Saudis depend on oil to run their country all oil over there is owned by the government.

 

[3waycross]

I sure hope not. What they can do is slow down exploration but I don't think they can break anyone!

Another good reason to be energy independent! One thing for sure, we have their attention.

 

[jedstivers]

I know some on here don't agree with me and they have valid reasons for it but I'd like to use up their oil first.

 

[B&M Farms]

The oil companies here will likely slow drilling down but I don't think production will fall off much. If it gets below $60 some of the wildcat operations may fold but the big boys will usually buy their productive leases.

I work in the oil field and fracking wells is becoming more efficient. I think the oil companies can absorb lower prices better than some of the analyst predict.

Jed,
You have a valid point and it makes sense to reserve our fossil fuels for a rainy day and use the middle east's. I just can't see that working because you then give all the power back to OPEC. Without competition, they will set on their reserves and drive the price up until you can't stand it anymore.

 

[jedstivers]

The oil companies here will likely slow drilling down but I don't think production will fall off much. If it gets below $60 some of the wildcat operations may fold but the big boys will usually buy their productive leases.

I work in the oil field and fracking wells is becoming more efficient. I think the oil companies can absorb lower prices better than some of the analyst predict.

Jed,
You have a valid point and it makes sense to reserve our fossil fuels for a rainy day and use the middle east's. I just can't see that working because you then give all the power back to OPEC. Without competition, they will set on their reserves and drive the price up until you can't stand it anymore.

That is one of the valid reasons.

 

[Craig Miller]

The oil companies here will likely slow drilling down but I don't think production will fall off much. If it gets below $60 some of the wildcat operations may fold but the big boys will usually buy their productive leases.

I work in the oil field and fracking wells is becoming more efficient. I think the oil companies can absorb lower prices better than some of the analyst predict.

Jed,
You have a valid point and it makes sense to reserve our fossil fuels for a rainy day and use the middle east's. I just can't see that working because you then give all the power back to OPEC. Without competition, they will set on their reserves and drive the price up until you can't stand it anymore.

That is one of the valid reasons.

They was a great plan years ago and thats what the strategic oil reserve was for. Now though i fully believe there will be other sources to be be used before we get anywhere close to using all theirs up.

 

[Bigfoot]

I'm enjoying cheaper fuel prices. I don't want to be greedy sounding, but I wish they would go cheaper. I bet it could go several dollars a barrel cheaper, and the big boys would still be profitable. I also consider the fact that we might run out someday. It'd be expensive, but we could put a diesal engine on everything, and use bio-diesal. Lubricate with synthetic oil. I used to hope ethanol was the answer, but it's not. I believe bio-diesal is a better product though.

 

[TexasBred]

The Saudis ran deficits from the mid-1980s until the late 1990s and may be prepared to do so again.
The Saudis can easily sustain low oil prices in the short-term, if they are looking to break the backs of the shale oil companies. Low prices also hurt Iran, Libya and a few others.

 

[hurleyjd]

The Saudis ran deficits from the mid-1980s until the late 1990s and may be prepared to do so again.
The Saudis can easily sustain low oil prices in the short-term, if they are looking to break the backs of the shale oil companies. Low prices also hurt Iran, Libya and a few others.

Should hurt Russia's ambitions for expansion..

 

[Brute 23]

The market usually corrects itself. Lower oil prices mean lower costs to drill and complete. There are people ramping up right now to take advantage of the lower operation coats and deals. It's the same theory no matter where you go.... buy low and sell high.

I'm enjoying cheaper fuel prices. I don't want to be greedy sounding, but I wish they would go cheaper. I bet it could go several dollars a barrel cheaper, and the big boys would still be profitable. I also consider the fact that we might run out someday. It'd be expensive, but we could put a diesal engine on everything, and use bio-diesal. Lubricate with synthetic oil. I used to hope ethanol was the answer, but it's not. I believe bio-diesal is a better product though.

Are you sure you want low oil prices? Remember what happened in 2008 when oil dropped.

 

[Bigfoot]

Hadn't thought about it keeping the dems in the big house.

 

[ohiosteve]

From my own personal observations, I think we need to concentrate more on the natural gas than the crude oil. I might be completely wrong on this but I believe that over here in the U.S of A we don't rely on any of the Saudis natural gas. The new drilling technologies we are using around here are producing huge reserves of natural gas. This is evident in the ever lowering prices of natural gas here in the states. Maybe we should use their cheap crude while it lasts and work on utilizing our excess of natural gas.

 

[TexasBred]

From my own personal observations, I think we need to concentrate more on the natural gas than the crude oil. I might be completely wrong on this but I believe that over here in the U.S of A we don't rely on any of the Saudis natural gas. The new drilling technologies we are using around here are producing huge reserves of natural gas. This is evident in the ever lowering prices of natural gas here in the states. Maybe we should use their cheap crude while it lasts and work on utilizing our excess of natural gas.

The US is up to her eyeballs in natural gas. We're fortunate enough to have some on our places. Have 9 new wells that have been permitted for over 3 years but not developed due to the low NG price and the large supplies.

 

[greybeard]

I know some on here don't agree with me and they have valid reasons for it but I'd like to use up their oil first.

Interesting plan--with absolutley no upside..
Saudi alone, has 268 Billion bbls of proven reserves of crude oil. They currently export 10 million bbls/day (total exports). We (USA) imports 1.35 Million bbls/day from Saudi Arabia alone in the last year data available. (2012) We (USA) consume (in all aspects) 18.5 Million barrels per day both domestically produced and all imports combined. Assuming Saudi alone could meet our crude oil requirements, Using those figures, it would take us 40 (39.68) years to deplete their proven oil reserves. BUT, USGS and USEIA says the middle East has 230 Billion bbls of UNDISCOVERED crude oil. Undiscovered is not included in "proven reserves" so we would have to add to that 40 year window. Considering that Saudi prefers oil to be priced right at $100/bbl, Using those same DOE/US Energy Information Administration figures, we would send OUT of this country, very close to $30 TRILLION US dollars over the course of those 40 years, or $670 Billion/year--and that's only IF oil stays at $100/bbl for all of the 40 years it would take us to deplete their reserves--it won't. As we begin to deplete the world's largest proven reserves, the price per bbl will skyrocket--probably exponentially as we get closer to depletion. Altho that would mean in several decades, that our own unused reserves would suddenly have a huge increase in value, the drain on our economy as a whole would be staggering---even for you and I. Can you imagine what the cost would be to you and I for diesel, herbicides, paint, plastics, tires--everything that is made from crude? Add to that, the loss of jobs from our upstream (drilling/exploration) petroleum industry and you can see this is just a non starter. (this assumes that the US alone is using Saudi oil reserves.) In reality, the time span would be shorter but just as costly)

I suspect very much, that you would be very very unwilling to apply the same dynamic to the soybean, corn, wheat, beef and dairy sectors---import every bit it and shut down our own ag production.

 

[TexasBred]

The Saudis ran deficits from the mid-1980s until the late 1990s and may be prepared to do so again.
The Saudis can easily sustain low oil prices in the short-term, if they are looking to break the backs of the shale oil companies. Low prices also hurt Iran, Libya and a few others.

Should hurt Russia's ambitions for expansion..

True...low oil price is really hurting them along with the weakness of the Rouble. And believe it or not sanctions are actually hurting them somewhat but not nearly as bad as the drop in oil prices. They're probably parking drilling rigs as well.

 

[Craig Miller]

I know some on here don't agree with me and they have valid reasons for it but I'd like to use up their oil first.

Interesting plan--with absolutley no upside..
Saudi alone, has 268 Billion bbls of proven reserves of crude oil. They currently export 10 million bbls/day (total exports). We (USA) imports 1.35 Million bbls/day from Saudi Arabia alone in the last year data available. (2012) We (USA) consume (in all aspects) 18.5 Million barrels per day both domestically produced and all imports combined. Assuming Saudi alone could meet our crude oil requirements, Using those figures, it would take us 40 (39.68) years to deplete their proven oil reserves. BUT, USGS and USEIA says the middle East has 230 Billion bbls of UNDISCOVERED crude oil. Undiscovered is not included in "proven reserves" so we would have to add to that 40 year window. Considering that Saudi prefers oil to be priced right at $100/bbl, Using those same DOE/US Energy Information Administration figures, we would send OUT of this country, very close to $30 TRILLION US dollars over the course of those 40 years, or $670 Billion/year--and that's only IF oil stays at $100/bbl for all of the 40 years it would take us to deplete their reserves--it won't. As we begin to deplete the world's largest proven reserves, the price per bbl will skyrocket--probably exponentially as we get closer to depletion. Altho that would mean in several decades, that our own unused reserves would suddenly have a huge increase in value, the drain on our economy as a whole would be staggering---even for you and I. Can you imagine what the cost would be to you and I for diesel, herbicides, paint, plastics, tires--everything that is made from crude? Add to that, the loss of jobs from our upstream (drilling/exploration) petroleum industry and you can see this is just a non starter. (this assumes that the US alone is using Saudi oil reserves.) In reality, the time span would be shorter but just as costly)

I suspect very much, that you would be very very unwilling to apply the same dynamic to the soybean, corn, wheat, beef and dairy sectors---import every bit it and shut down our own ag production.

Well said

 

[tater74]

Pickensplan.com

 

[TexasBred]

Pickensplan.com

Want nothing to do with anything with T-Bone's name on it. He's already been run out of Texas.

 

[Brute 23]

This is the US and Saudi's are putting it to Putin and Russia. As soon as he cries uncle it will be business as usual. The Saudi's wouldn't play games with the US economy like this on their own. ;-)

 

[slick4591]

Got a friend that does a lot of business selling pumps in Midland/Odessa and the panhandle area of Texas. Says the oil and gas business is starting to take off. Heck, I though it had already done it years ago, but he says we ain't seen nothing yet.