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

I was in the market last year in the same area and you can get a 'nice' house, meaning 4 beds, 2.5 baths and pool in Pearland for far, far less than 400k.

(old man moment) I remember when that crap was all cow pastures and probably could have all been had for $400k.

 

Memorial City and Westchase beg to differ.

 

dead right. Meant Hwy 6.

 

Hey we eat texmex and BBQ. Our weekend hobbies in the durrty souf

 

Upstream maybe, but their downstream in Texas City is generating lots of cash. It hasn't been this good for that Texas City plant since the Amoco days.

 

In Silvercreek..sure. But those houses are approaching 15 years in age.

And no thanks to the mess that is Shadow Creek.

 

Man I didn't think oil was going below 60 for an extended period of time, but after today I think it is a certainty. The price action today combined with the reality of drilling and oil production not slowing down in America is going to continue to drag on prices. OPEC is going to need major cuts.

 

That is great news. Do you think it can stay under $3 for long? Will big oil [exxon, shell etc] allow it?

 

i know you're probably trolling as you tend to do, but they don't have a say in the price of gas. it's all the opec (saudis) based on supply and demand of crude oil.

as far as it being good or bad for the US/Texas, that's been discussed earlier in this thread.

 

I am not and always voice my opinion. Of course to liberals requiring everything handed to them on a platter, it's difficult to digest.
you dont think big oil controls supply and demand of oil with pipelines and domestic drilling? You dont think they lobby for measures that affect supply and demand? Keystone xl, heard of it? You need more friends if you think asking those q's are trolling.

 

Guess I don't have to trade in my Hummer after all.

 

I work for an engineering contractor that does a lot of projects at that Texas City refinery. What "old timers" I've seen go into retirement are more about the old BP mentality not wanting to change their ways to how Marathon likes to operate, so they're basically told to shape up or ship out. A lot of people have decided to ship out, and not just old timers. I've seen a LOT of turnover in the last year or so. It's been going on since well before the crude prices started dropping.

 

What are you talking about?

Rex Tillerson, XOM CEO, recently said they are prepared for oil at 40.

 

It's because of the US not because of the Saudis.

 

Didn't GS have some note that mentioned $55 a barrel? I was thinking it would get close to it. WTI is already 62.3 right now. Boom.

 

I think they said 85.

 

He also said they are losing their shirts over natural gas. Of course, ExxonMobil loved to point out that their return on equity was attributed to their management...and not rising oil prices.

 

It's the Saudi's crushing all competition.... crashing shale oil, bankrupting emerging renewables, cutting the knees off from under Russia and Iran, ramping back up world consumption and propping up their non-oil investments.

It is international business warfare and the Saudi's are using their nukes hoping to be the last man standing after the carnage.

I don't blame them for it but as a matter of national security we should fight back. We need to promote domestic production so we can't be starved or embargoed. We need to promote renewables to move into the future when oil is scarce. We need to keep slowing oil consumption to slow climate change. Why don't we set a minimum price for imported into the US, say $70, and add tariffs to anything under that. It ensures our path forward and could raise money for infrastructure replacement. Whipsaw price changes add chaos to strategic planning for US business and world politics.

 

what sucks about all this is..people are going back to hold habits.

SUVs and large car purchases have gone back up. There will be less interest in renewable sources..hybrid cars..etc.