Saudi Arabia to lower oil prices, the houston boom is over

I wonder if we have hit Peak Consumption? If economic issues and a changing view of carbon have reversed the 100 year trend?

 

Iran deal passing, China slow down.

Could oil hit $20 a barrel?

http://www.bloomberg.com/news/artic...-for-goldman-as-forecasts-cut-on-growing-glut

 

Goldman..the same guys who told us oil was going to $200 and would likely never fall below $100 ever again.

 

I think you're right they were saying something like there was a zero chance that oil would fall below $80 awhile back. I think they are predicting $45 oil next year with a small chance of $20 but the media just picks it up as "$20 oil coming!!!!" Interesting how the media picks up on a narrative and runs with it.

 

There's that saying about the stone age not ending because we ran out of stones. I still remember a college course 15 years ago where the instructor said a simple calculation of current consumption rates with avg annual growth would require production from three more Saudi Arabia's for the as is scenario in the next fifteen years.fracking covered for one and I suppose the recession covered for another? Math still didn't add up...

More likely is that the saying won't come true until we solve the on demand problem when it comes to renewables and either augment or disrupt the trillion dollar infrastructure the world has built to pipe, produce and distribute fossil fuel derived energy.

Rising nations are rising...

 

http://www.bloomberg.com/visual-data/gas-prices/20152:United States:USD:g

Very cool interactive data graph on world gas prices and affordability to the home country. You can change countries by clicking on the graph.

 

The Saudis Gambled and Texas Won
http://www.wsj.com/articles/the-saudis-gambled-and-texas-won-1441063219?mod=e2fb

 

Copy n paste please. Not subscribed. Thank you:grin:

 

LINK

 

"Interesting" article shown together with all the layoff posts.

 

Well if the companies have already sunk so much capital on the drilling , The only thing that matters is incremental costs. If incremental costs drilling > price of oil they will keep drilling, but new drilling won't start.

 

In the surface it may seem like that but by drilling more, they will cause price to drop further.

 

Shell Exits Arctic as Slump in Oil Prices Forces Industry to Retrench

http://www.nytimes.com/2015/09/29/b...h-shell-alaska-oil-exploration-halt.html?_r=0

Yet there is still push to drill on wildlife refuge.

http://www.commondreams.org/news/20...-declares-we-need-get-some-oil-pipeline-quick

 

**** those birds and other animals! who cares if a pristine location is ruined for decades/centuries.

 

Wife's company just had large layoffs, she is safe for now though. There's a good chance might company might start early next year once our hedges come off.

 

That ish was click bait anyway. A lot of people are following prices on a daily basis.

 

http://www.businessinsider.com/oil-is-spiking-2016-1

any thoughts on where prices (and houston's economy) go if this thing escalates?

 

Saudi's cost of production is much less than texas. They have a structural advantage. There is no way for Texas to beat saudi at making oil.

 

Unless OPEC makes a move on SA.
Saudi Arabia may have enough money to survive the long-term glut, but what about the other members of OPEC?

 

Hope you got hooked up man. I remember you mentioning you fell victim of the oil and gas economy.