Our oil industry is practically immune from OPEC (or anyone else) trying to flood the market. Most of our oil comes form shale oil wells now and they can be turned on and off like your faucet in the kitchen. That's not how normal oil wells work. Typically when you turn a well off, you destroy the well and it has to be re-drilled to access that oil.
OPEC, Russia...it doesn't matter. They can only curtail our production as long as they can afford to sell their oil at really cheap prices. The second oil prices jump back up, we just turn our wells back on and we're back in business. Our oil industry is bomb proof now and it scares the shit out of OPEC. You will likely never see $100/bbl oil prices ever again. Oil rich countries have considerably less global power than they did 10 years ago.
Surprised SC is $1.45. They're usually one of the cheapest states. I paid $1.38 yesterday. That means I could almost get 870 gallons with my Trump Bux.
I cant verify this but i have a feeling of 3-country mass economic attack against us. Russia and SA attacking our energy industry, China infecting us with chinese controlled media creating mass panic.
Russia and Saudi Arabia rely on oil revenue a lot more than the U.S. does. In fact, while our energy industry suffers from low oil prices, cheap energy is an overall economic benefit for the U.S.
Russia and Saudi Arabia are in a fight for survival. Yes, they are also competing with our energy industry, but we'll be fine.
"Our oil industry is practically immune from OPEC (or anyone else) trying to flood the market. Most of our oil comes form shale oil wells now and they can be turned on and off like your faucet in the kitchen. That's not how normal oil wells work. Typically when you turn a well off, you destroy the well and it has to be re-drilled to access that oil.
OPEC, Russia...it doesn't matter. They can only curtail our production as long as they can afford to sell their oil at really cheap prices. The second oil prices jump back up, we just turn our wells back on and we're back in business. Our oil industry is bomb proof now and it scares the shit out of OPEC. You will likely never see $100/bbl oil prices ever again. Oil rich countries have considerably less global power than they did 10 years ago"
To answer your specific question, Russia is not a member of OPEC. Russia is a serous competitor to OPEC though. Russia and OPEC (the Saudis) are having a price war right now. OPEC wants to drive prices low enough and for long enough to compel Russia to start capping wells, which will destroy those wells. This will reduce the supply of oil in the world and drive prices higher.
The Saudis are in a very tough economic position right now because of the shale oil fields in America. They have over leveraged their oil economy in an effort to tamp down on growing dissent against the crown by increasing public spending. The Saudi crown is essentially buying their public's loyalty with oil money. Since oil is no longer at $100/bbl, these policies are drying up their monetary reserves and they're getting desperate.
The Saudis did try to run the American Shale oil industry out of business a few years ago, but like I described above, that didn't work and it never had a chance to work. If they can convince the rest of the OPEC members to continue to flood the market with oil for a while longer, they may be able to hurt Russia's oil industry enough to force them to suspend production and cap their wells..
This is really good for America. If Russia does curtail production, that leaves the door open for some of the less profitable shale oil wells to begin production again, and as I mentioned, it's very easy to turn those wells on and off. It could also be an opportunity for new shale oil wells to be drilled.
America now controls the oil market, at least in the sense that they control the max price of oil. OPEC may be able to flood the market with cheap oil and drive prices lower at their whim, but they can never, ever drive prices past a certain point as long as America has shale oil. And, we're gonna have shale oil for a very, very long time. The Bakken Oil field in N.Dakota/Montana is the largest oil field in the world currently. And we have discovered more fields in other parts of the country as well.
Shale oil has brought stability to the oil market. No longer can a nation's oil wells be held hostage by OPEC or any other country if that nation has invested in shale oil. Prices are more stable than they have ever been in the past.
Haha, just filled our full size trucks/suvs with $1.60/gallon dead dinosaurs yesterday. Fills so good to have full tanks, 6000 pounds on rolling stock, able to haul shit and have a center console full of Springfield XD.
And in comes a Pede with a real answer. The math definitely checks out, no Common Core here. I guarantee that mystery tax goes for illegal healthcare instead of infrastructure like it's supposed to.
Our oil industry is practically immune from OPEC (or anyone else) trying to flood the market. Most of our oil comes form shale oil wells now and they can be turned on and off like your faucet in the kitchen. That's not how normal oil wells work. Typically when you turn a well off, you destroy the well and it has to be re-drilled to access that oil.
OPEC, Russia...it doesn't matter. They can only curtail our production as long as they can afford to sell their oil at really cheap prices. The second oil prices jump back up, we just turn our wells back on and we're back in business. Our oil industry is bomb proof now and it scares the shit out of OPEC. You will likely never see $100/bbl oil prices ever again. Oil rich countries have considerably less global power than they did 10 years ago.
Surprised SC is $1.45. They're usually one of the cheapest states. I paid $1.38 yesterday. That means I could almost get 870 gallons with my Trump Bux.
How low of a margin are these countries making on this?
3.25 in socialist shit hole that is called Washington State. People. STOP MOVING HERE. Working for Amazon and Microsoft is not worth it. Thx.
My neighbor just asked me this question. I did not know what to tell her. What is going on over there?
I cant verify this but i have a feeling of 3-country mass economic attack against us. Russia and SA attacking our energy industry, China infecting us with chinese controlled media creating mass panic.
Russia and Saudi Arabia rely on oil revenue a lot more than the U.S. does. In fact, while our energy industry suffers from low oil prices, cheap energy is an overall economic benefit for the U.S.
Russia and Saudi Arabia are in a fight for survival. Yes, they are also competing with our energy industry, but we'll be fine.
[Copy Paste from my reply to another comment]
"Our oil industry is practically immune from OPEC (or anyone else) trying to flood the market. Most of our oil comes form shale oil wells now and they can be turned on and off like your faucet in the kitchen. That's not how normal oil wells work. Typically when you turn a well off, you destroy the well and it has to be re-drilled to access that oil.
OPEC, Russia...it doesn't matter. They can only curtail our production as long as they can afford to sell their oil at really cheap prices. The second oil prices jump back up, we just turn our wells back on and we're back in business. Our oil industry is bomb proof now and it scares the shit out of OPEC. You will likely never see $100/bbl oil prices ever again. Oil rich countries have considerably less global power than they did 10 years ago"
To answer your specific question, Russia is not a member of OPEC. Russia is a serous competitor to OPEC though. Russia and OPEC (the Saudis) are having a price war right now. OPEC wants to drive prices low enough and for long enough to compel Russia to start capping wells, which will destroy those wells. This will reduce the supply of oil in the world and drive prices higher.
The Saudis are in a very tough economic position right now because of the shale oil fields in America. They have over leveraged their oil economy in an effort to tamp down on growing dissent against the crown by increasing public spending. The Saudi crown is essentially buying their public's loyalty with oil money. Since oil is no longer at $100/bbl, these policies are drying up their monetary reserves and they're getting desperate.
The Saudis did try to run the American Shale oil industry out of business a few years ago, but like I described above, that didn't work and it never had a chance to work. If they can convince the rest of the OPEC members to continue to flood the market with oil for a while longer, they may be able to hurt Russia's oil industry enough to force them to suspend production and cap their wells..
This is really good for America. If Russia does curtail production, that leaves the door open for some of the less profitable shale oil wells to begin production again, and as I mentioned, it's very easy to turn those wells on and off. It could also be an opportunity for new shale oil wells to be drilled.
America now controls the oil market, at least in the sense that they control the max price of oil. OPEC may be able to flood the market with cheap oil and drive prices lower at their whim, but they can never, ever drive prices past a certain point as long as America has shale oil. And, we're gonna have shale oil for a very, very long time. The Bakken Oil field in N.Dakota/Montana is the largest oil field in the world currently. And we have discovered more fields in other parts of the country as well.
Shale oil has brought stability to the oil market. No longer can a nation's oil wells be held hostage by OPEC or any other country if that nation has invested in shale oil. Prices are more stable than they have ever been in the past.
Still $3.09 where I am in SoCal.
You are paying for taxes, not gas
How's that cap and trade working out for you guys?
Haha, just filled our full size trucks/suvs with $1.60/gallon dead dinosaurs yesterday. Fills so good to have full tanks, 6000 pounds on rolling stock, able to haul shit and have a center console full of Springfield XD.
It's still $3.30 in SoCal and hardly anyone is driving. So much for the supply and demand theory.
It would be ~$2.04 without all the taxes.
https://www.ocregister.com/2019/04/16/californias-gas-taxes-total-nearly-1-per-gallon-and-include-a-28-cent-mystery-surcharge/
And in comes a Pede with a real answer. The math definitely checks out, no Common Core here. I guarantee that mystery tax goes for illegal healthcare instead of infrastructure like it's supposed to.
In addition to the price war, demand is reduced because of the lockdown orders.
It would be to both their advantage to hurt Iran, which is having trouble selling oil. Would this do it?