Internal Fighting within OPEC

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4,836
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Central Texas
Talk about music to my ears! Guess who is complaining the most? Venezuela and Iran. They are in a panic due to the falling oil price. This is a very effective financial weapon to use against these crooked regimes. Looks like the house of Saud is telling its weaker members KMAGYOYO! OPEC Rift Deepens
Quote:
Venezuela, which has been one of the most outspoken proponents of a production cut by the Organization of the Petroleum Exporting Countries, called over the weekend for an emergency meeting of the group of some of the world’s biggest oil producers to respond to falling prices. But Kuwait said Sunday that OPEC was unlikely to move to rein in output. Saudi Arabia, meanwhile, appeared to deepen its recent move to defend its own market share at the expense of other members by aggressively courting customers in Europe. Over the weekend, traders said Saudi Arabia was now asking for stronger commitments from some of its buyers in Europe, a move that would lock in those customers, including any new ones it would gain with recent price reductions. Also on Sunday, Iraq’s State Oil Marketing Company cut the price of Basrah Light crude in November for Asian and European buyers by 65 cents to a discount of $2.50 a barrel below the Oman/Dubai benchmark for Asian customers and $4.75 below the Brent benchmark for European customers, according to official selling prices published by the company. Each member has a different tolerance for lower prices. Kuwait, the United Arab Emirates and Saudi Arabia generally don’t need prices quite as high as other members—including Iran and Venezuela—to keep their budgets in the black. Last week, OPEC’s average basket of crude fell to its lowest level since December 2010, while the Brent international benchmark fell near a four-year low at one point before bouncing back to close Friday at $90.21 a barrel. This month, state-owned Saudi Aramco stunned the rest of OPEC by slashing its November prices to defend its market share in Asia’s growing market. At the same time, Saudi Arabia said it increased its output in September.
 
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2,630
Location
Montreal, QC, Canada
I can only see this crashing further. They are finding oil EVERYWHERE. Even Newfoundland has piles of oil. They killed off car ownership for many people after YEARS of gouging at an unsustainable price, inspired Tesla, got people to toss their gas guzzlers, forced people to use public transit. So now that they made many non-conventional oil extracion wells feasible at high oil prices, and are currently "up and running" the legacy cost is being paid off... Many companies went on exploration binges and applied for wellsite permits in many non conventional fields that people would have never bothered with when oil was 40$ a bbl, and now they are all bearing fruit. They really did this to themselves, the let the genie out of their own bottle. Now the race is on for them to crash the oil market to harm public transit, new car tech, and get people back in the habit of the good old Sunday Drive. Only problem is, they pulled this trick once too often and they left prices too high for way too long. Many people found a new routine in life, and they know cheap oil would only be temporary as always. People are now interested in moving away from oil, myself included. The new car tech is the "new fast". I'm very happy about all this, and would love to see the Oil Barons rot.
 
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493
Location
Texas
It was only a matter of time...the rich can get richer and sure can get poor as well. The lower oil prices will also help boost sales around the holidays too. also, this goes along with Putin ordering troops back from Ukraines border. The sanctions, currency decline and dropping oil prices are starting to get to Russia. Not to mention the trade ban he issued.... its starting to hurt and he knows it.
 
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43,676
Location
'Stralia
I read an article about power storage (electrical) yesterday that painted gas/oil fuels as a race for the bottom. e.g. cited was that a battery can now be made that stores a couple of hours of typical GT peaker plant for the same capital cost...and has no fuel, buying electricity off peak, and selling it peak. Given that the GTs are the highest cost producers in the market, the author claimed that the petroleum companies were about (next two decades) to be left with stranded assets, and COULD have a propensity to start extracting and dumping to eke every cent out of their investment...if you are going to go down, reduce the competitor's margins, and burn it all. Didn't agree with the entire premise, and will try to dig said article up tonight.
 
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10,008
Location
Upstate NY
Leave it in the ground. We need it for medicine and plastics, not to be burned propelling our ever-larger selves ever faster to 60 mph.
 
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1,464
Location
Gulf Coast, MS
The US oil market depends heavily on high oil prices. The new oil fracking needs $100+ a barrel to be profitable. If gas prices continue to go down then fracking would be unprofitable.
 
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6,367
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Midwest
Don't get too excited-it's not the first time this same scenario has played out. When prices skyrocketed in the 70's and we started seriously looking at new technologies and fuel savings, OPEC managed to get prices low enough to keep us dependent upon their oil. This is nothing more than a short term lull-prices will go back up. The same thing happened when people started trading in their 60's vintage cars for 70's vintage Datsuns, Pintos and Vegas.
Originally Posted By: Falken
Many people found a new routine in life, and they know cheap oil would only be temporary as always. I'm very happy about all this, and would love to see the Oil Barons rot.
You're failing to realize that the United States isn't the only major oil consumer. Emerging markets such as China and India have more than taken up what we no longer use. Even if we completely weaned ourselves from foreign oil, OPEC would still have other countries that would take up the slack. Those "oil barons" will still have a market, and there is no chance that they will ever "rot".
 
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sc/fl
So the situation is that we get lower fuel prices and it hurts Venezuela and Iran. Sounds pretty positive to me.
 
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2,191
Location
VA
Originally Posted By: sciphi
Leave it in the ground. We need it for medicine and plastics, not to be burned propelling our ever-larger selves ever faster to 60 mph.
I expected to see a Chevy Volt or Nissan Leaf in your signature, but that isn't the case.
 
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717
Location
MKE
Short lived it will be. Oil is a scarce commodity. Do not be misled by momentary ups and downs stemming fron speculation. US is growing, EU is q.e.ing. China won't lag for too long. Expect prices to bounce back to over 100 soon.
 
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2,818
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NYC
Originally Posted By: bvance554
Originally Posted By: sciphi
Leave it in the ground. We need it for medicine and plastics, not to be burned propelling our ever-larger selves ever faster to 60 mph.
I expected to see a Chevy Volt or Nissan Leaf in your signature, but that isn't the case.
Being pro environment doesn't necessarily mean being your stereotypical California Liberal. My views are (superficially) similar to his, yet look at the vehicles in my signature...... If your gonna judge, don't halffast it
 

sleddriver

Thread starter
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4,836
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Central Texas
Originally Posted By: kozanoglu
Short lived it will be. Oil is a scarce commodity. Do not be misled by momentary ups and downs stemming fron speculation. US is growing, EU is q.e.ing. China won't lag for too long. Expect prices to bounce back to over 100 soon.
That depends....on a lot. And don't be so sure given the former. My thinking is it's been artifically high for so long (7-8yrs?) we've gotten used to it. Does gas at $2.95/ga seem cheap? It didn't used to. We used to be furious..... Despite the 'war on fossil fuels' by the current regime, the private sector has invested, explored and drilled and struck paydirt. Incredible reserves have been discovered within the same time frame. The kinks have been worked out, workers have been hired and USA production, in particular, has greatly increased. And we're not the only country discovering, and withdrawing oil previously undiscovered. Not speculation. Production. In other words, it's not near as scarce as you've been led to believe. Finally, it's high time OPEC's strangle-hold was over. This is 2014. Not 1970. $%^&#! them. Let them throw sand, camel pies and scorpions at each other. Power Corrupts. Absolute Power Corrupts Absolutely. And it has. Absolutely. And we've all gotten used to it. True change is coming....
 
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717
Location
MKE
It is undeniable that supply grew tremendously. Buy people buy and sell based on perceptions, forecasts, estimates, whims even. Growing economies mean more expensive oil. China is doing not so well like EU , they are pumping money into the system. End of qe in the US adds to the value of $ by attracting investors/rentiers. All this leads to lower prices. I like it, want it to fall further. But I would not be surprised if it goes back up tomorrow.
 
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10,008
Location
Upstate NY
Originally Posted By: michaelluscher
Originally Posted By: bvance554
Originally Posted By: sciphi
Leave it in the ground. We need it for medicine and plastics, not to be burned propelling our ever-larger selves ever faster to 60 mph.
I expected to see a Chevy Volt or Nissan Leaf in your signature, but that isn't the case.
Being pro environment doesn't necessarily mean being your stereotypical California Liberal. My views are (superficially) similar to his, yet look at the vehicles in my signature...... If your gonna judge, don't halffast it
There are some medicines that cannot be made without petroleum. Likewise, we don't have a reliable source of bio-based plastics to transport/use those medicines. Conserving what's there for my health and yours (and your kids and grandkids health) a few decades down the line is a good idea.
 
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2,191
Location
VA
Originally Posted By: sciphi
Originally Posted By: michaelluscher
Originally Posted By: bvance554
Originally Posted By: sciphi
Leave it in the ground. We need it for medicine and plastics, not to be burned propelling our ever-larger selves ever faster to 60 mph.
I expected to see a Chevy Volt or Nissan Leaf in your signature, but that isn't the case.
Being pro environment doesn't necessarily mean being your stereotypical California Liberal. My views are (superficially) similar to his, yet look at the vehicles in my signature...... If your gonna judge, don't halffast it
There are some medicines that cannot be made without petroleum. Likewise, we don't have a reliable source of bio-based plastics to transport/use those medicines. Conserving what's there for my health and yours (and your kids and grandkids health) a few decades down the line is a good idea.
I understand and agree with the underlying principle of conservsation, but its hard to kick a drug that we all rely on everyday. However, I personally will not denounce the exploitation of a resource that I consume and rely on, just as you do. If I were able to ween myself off of it then I'd feel comfortable dicouraging its use, but neither of us are at that point are we? I wasn't judging, I was pointing out the hypocrisy.
 
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468
Location
new Jersey
The amount of oil required to produce medicines is infinitesimal. If it comes to that hydrocarbons for that purpose can be created synthetically .
 

sleddriver

Thread starter
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4,836
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Central Texas
I heard this morning on the radio that it's estimated the price of oil would have to drop all the way to around $60/barrel before production from the Eagle Ford Shale would be affected. Another source quoted below $70. Yet another said between $70 and $80. So perhaps $70-75 is a reasonable number. Looking forward to more knashing of teeth, tearing of clothes, dumping of ashes upon their heads and further signs of panic amongst the twisted little tin-horn crowd. Drill baby, drill.....
 
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19,686
Location
Sunny Florida
Originally Posted By: bvance554
I wasn't judging, I was pointing out the hypocrisy.
And virtually anyone driving a car or truck is guilty of some if they complain about oil. The fact is this country needs some work, and oil could easily fuel an economic renaissance if only we could get the greenies to allow it.
 
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