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

:grin:

 

this thread is annoying to follow.. someone make a summary statement for me pls

 

A cousin works for Aramco. I asked him the same question. Saudi Arabia can tolerate $50/bbl or even $12/bbl for several months, however American producers cannot. US energy independence is against Saudi interests, and they don't want to repeat the mistakes of being nice and honest like they did in 1982, and the rest of OPEC maintained production.

 

Oil prices need to be a certain number for Houston's economy to thrive and boom. Until the last year, prices were above that number so Houston flourished. However, oil prices have decreased below that optimal number so Houston companies are not happy. In order for prices to go back up, major oil producers like Saudi Arabia need to decrease how much oil they make.

At a meeting yesterday, Saudi Arabia said it would not decrease how much it produced. Thus, prices will not go back above the optimal number since Saudi production wasn't cut. Therefore, Houston companies are unhappy. That will impact our local economy. The question, how bad will it hurt?

 

I don't know. It may hurt Houston a little but it may help the economy as a whole. Increased oil prices have caused the price to do business to increase. Now that prices are lower, companies can afford to lower prices and that should help consumer savings. Just my thought. Potentially inaccurate

 

For what? Voicing my opinion? Did I come marching in like a had a economics degree? I didn't root for oil prices to fall I just said I didn't care. The boom has effected me negatively more than positively.

 

Shut your pie hole you tree hugging hippie! Oil for life son

 

What does tolerate mean? Throwing away 800 million a day is hard to tolerate. Smells like BS.

 

Lower the price to compete?

They are taking back a bigger market share to lower the price and decrease the profits of the American companies. Less profit means production will slow and slowly SA can turn back their output to bring the price back up.

 

Shut down your economy for months? I am gonna go out on a limb and say this doesn't happen.

 

Oil prices plunge as production rises, fueling concern in OPEC
http://www.washingtonpost.com/busin...fd877c-53c9-11e4-892e-602188e70e9c_story.html

Someone might just be pushing Russia past the tipping point that Western sanctions set up.
And jacking with Venezuela is always a plus.

Anybody know what the average-ish cost of production is for WTI?

 

Gas was $2.75 this morning

 

So much ignorance and panic in this thread it's frustrating. It costs about 6-8 million to drill, frac, and start producing a horizontal well in the Permian...typical output the first year is between 20-30 million a year; even though the production drops off greatly after that time, the revenue generated is 'well' worth it.

And even though nobody points it out...Saudi is 'talking about' dropping the price. Oooooo....they're talking folks! It's funny how some possibly rumor article comes out and all the online experts come in to give us the facts on our current state of oil production.

 

Reeko, as someone with experience in the oil industry, you should just leave this thread. You have no idea what you're talking about

 

Good! Lower oil prices may be bad for the oil producing companies but it's great for the economy. It's like a stimulus check to everyone that needs to drive. The money they save on gas, they can spend on something else.

 

Saudi Arabia is using the moment to steal the spot light. Rising production from Libya since the start of this summer is causing Brent prices to slide.

 

Facepalm....

Yes, the money saved on gas will surely offset the loss of customers, patrons, orders, etc. from those who used to work for oil but have been laid off.

Surely.

Guys, if you (i) weren't born before 1985 or (ii) weren't in Houston before 1985, please leave this thread, mmmkay? TIA.

 

You do know that technology, society, engineering and tons of other things have advanced since 1985 right? RIGHT!?!

 

I was also in the Silicon Valley during the solar bust. Were you?

Please leave the thread as many folks have asked of you. TIA.