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

Supply spike. Developing nations are still consuming.

 

Stuff is serious. Bae getting transfered to planning and control. Whatever they do.

 

Damn.

 

The North Dakota Crude Oil That's Worth Less Than Nothing
[http://www.bloomberg.com/news/artic...kota-crude-oil-that-s-worth-less-than-nothing

Oil is so plentiful and cheap in the U.S. that at least one buyer says it would need to be paid to take a certain type of low-quality crude.

Flint Hills Resources LLC, the refining arm of billionaire brothers Charles and David Koch’s industrial empire, said it would pay -$0.50 a barrel Friday for North Dakota Sour, a high-sulfur grade of crude, according to a list price posted on its website. That’s down from $13.50 a barrel a year ago and $47.60 in January 2014.
While the negative price is due to the lack of pipeline capacity for a particular variety of ultra low quality crude, it underscores how dire things are in the U.S. oil patch. U.S. benchmark oil prices have collapsed more than 70 percent in the past 18 months and West Texas Intermediate for February delivery fell as low as $28.36 a barrel on the New York Mercantile Exchange on Monday, the least in intraday trade since October 2003.

edit*
Ultra click bait title...
High sulfur crude oil is worth practically less than nothing. Only. 11000 barrels of this crude areally produced per day from north Dakota, versus higher quality crude which is at a million barrels per day.

 

dropping again

http://www.investing.com/commodities/crude-oil

 

My dad last his job yesterday, was with Key Energy for 32 years. No severance or anything, just don't let the door hit you on your way out.

What sucks is he's not old enough just yet to 100% retire. He's got a couple of years he needs to burn.

 

Damn. That sucks. Sorry to hear that. It's one of my big fears is to lose my job around 55-60.

 

Seems the Saudis are doing a good job of keeping he US oil off the market by flooding the market.

 

Not just Saudis. We just opened up oil exports, Iran is back in the game, Venezuela is pumping as much as they can to stay alive.


The easiest answer to making money when prices are this low are? Pumping out more oil.

 

Where does the US stand on this point. Low gas prices are good for the economy but too low hurts the economy because thousands/millions of folks are losing jobs. And it's not just oil jobs either. My mother in law is a nurse and they just let go some contract nurses and cut all nurses hours because most of their patients were either workers or families of workers in the Eagle Ford areas.

I know USA also want to destabilize Russia, China, and others so there is that but at what cost to good American jobs?

Any chance we pass a law that neutralizes the price of Oil? For example, an inverse gas tax where tax decreases when the price of oil is high and increases when the price is low? This keeps the price stable. Or never gonna happen in 'MERICA.

 

Free markets evolve and if energy companies want to survive they'll have to evolve as well. So far the gains in the economy are larger than the losses. It sucks for the small towns that saw such a large boom ($1200 rent for a 1bd apartment in North Dakota).

 

Damn 32 years service and no severance? That sucks.

If he were in my company, he'd get 64 weeks severance pay. At least that's what it was

 

Don't count on it. Last year he was offered a severance or take another position. He took the other position. This year no other position and no severance.

 

You are thinking about it as if there is a US cartel that decides on how much we are going to produce. Further, a command economy won't control the commodity markets.

 

So when can we expect a drop in US oil production? I imagine its dropping fast in the Eagle Ford, Niobrara, and Bakken; dropping slightly off-shore; but what about the Permian and other areas?

 

Hate to say it, but sounds like a good time to start a war and drive the prices back up. That seemed to work last time

 

Low oil is good for a lot of industries like shipping, cars, travel, etc. Just bad for Texas.

 

Rig count has dropped 60%

http://phx.corporate-ir.net/phoenix.zhtml?c=79687&p=irol-rigcountsoverview

 

Saudis are trying to price US producers out, but they don't realize that producers will jump right back in as soon as the price goes back up.

 

The big ones will. They rest will be fighting off lenders in bankruptcy court.