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Shit with Russia is getting real

Govi

Passed Driver's Ed
Location
Left Coast
Think "The Saudis are the lapdogs of the Americans in the end so whatever America wants, Saudis oblige" out.

A low price for oil puts much or all of new oil production plans in America on hold; new fracking drilling will not occur. This ends all hope of American oil production meeting all of America's demand. America as a nation is not benefiting from low oil prices; American consumers benefit, but American oil producers are being hammered by low oil prices in the same way Russia is being hammered.

The low oil prices will continue until supply begins to contract. When supply contracts, that will pull more American fracking companies back into the drilling business, which will expand supply again and prices will drop again. This will continue until OPEC blinks, that is, starts to restrict supply.

In the meantime, a lot of American oil workers jobs will begin disappearing; the new oil boom towns in the various shale areas will begin a slide into temporary ghost towns.
 

barnes93cb

Go Kart Champion
Location
South Carolina
Think "The Saudis are the lapdogs of the Americans in the end so whatever America wants, Saudis oblige" out.

A low price for oil puts much or all of new oil production plans in America on hold; new fracking drilling will not occur. This ends all hope of American oil production meeting all of America's demand. America as a nation is not benefiting from low oil prices; American consumers benefit, but American oil producers are being hammered by low oil prices in the same way Russia is being hammered.

The low oil prices will continue until supply begins to contract. When supply contracts, that will pull more American fracking companies back into the drilling business, which will expand supply again and prices will drop again. This will continue until OPEC blinks, that is, starts to restrict supply.

In the meantime, a lot of American oil workers jobs will begin disappearing; the new oil boom towns in the various shale areas will begin a slide into temporary ghost towns.
Very well said. These lowered oil prices are also having a large impact on some of the OPEC countries. Iran for instance is very reliant on Oil. They did not want to lower oil prices being that they make up the majority of their income. Even though economic sanctions have become less strict. The contry still has work to do.


As far as Russia. Im excited to see where they go in the next few months.
 

GIACUser

Master Wallet Mechanic
Location
USA
Car(s)
MK 6 GolfR
OPEC decided not to restrain their production. This does two main things: it hits their profits short term and it makes the American fracking drilling much less profitable, reducing supply from America in the longer term. It's not anyone's plot to damage Russia. It's OPEC's plot to reduce American production.

:govi:

I agree with you completely. We recently became production independent and are no longer in need of foreign oil and OPEC obviously wants to take us down before we take them down. Our cost to produce oil is higher than theirs so increasing production to push prices down is their biggest weapon against our current state of independence.
 

DUBPL8

Go Kart Champion
Location
DFW
Think "The Saudis are the lapdogs of the Americans in the end so whatever America wants, Saudis oblige" out.

A low price for oil puts much or all of new oil production plans in America on hold; new fracking drilling will not occur. This ends all hope of American oil production meeting all of America's demand. America as a nation is not benefiting from low oil prices; American consumers benefit, but American oil producers are being hammered by low oil prices in the same way Russia is being hammered.

The low oil prices will continue until supply begins to contract. When supply contracts, that will pull more American fracking companies back into the drilling business, which will expand supply again and prices will drop again. This will continue until OPEC blinks, that is, starts to restrict supply.

In the meantime, a lot of American oil workers jobs will begin disappearing; the new oil boom towns in the various shale areas will begin a slide into temporary ghost towns.

True, but those oil boom towns should have thought long and hard about diversifying their economy even though this isn't the first time such a bust will occur.
 

Govi

Passed Driver's Ed
Location
Left Coast
"Diversifying" is easy to say to yourself, but try telling it to the mayor of a Texas boom town that was pop. 6,000 in 2010 and is now pop. 40,000. That kind of growth involves so many problems to solve that diversification is probably impossible until growth slows down.
 

KYGTIGuy

Go Kart Champion
Location
fifth dimension
I'd just tell them to move. No one is owed a job where they happen to live. Lot of that in Eastern Kentucky. People are angry there are no jobs. Well, move.

Easier said than done but at some point you got to get real with yourself and face facts.

Load up the truck and move to Beverly....
 

maxtdi

Go Kart Champion
Location
Nor-Cal
Bitching about low oil prices is bizzare to me. Surely .001% of the population is negatively affected while the vast majority enjoys the benefits of paying less for everything.

That said... What were doing with Russia is just nuts
 

DUBPL8

Go Kart Champion
Location
DFW
"Diversifying" is easy to say to yourself, but try telling it to the mayor of a Texas boom town that was pop. 6,000 in 2010 and is now pop. 40,000. That kind of growth involves so many problems to solve that diversification is probably impossible until growth slows down.

Not the first time a town like Odessa has gone through this. They should know better.
 

troyguitar

Go Kart Champion
Location
Aurora, IL
Consider yourself lucky out there in Fracklandia.
Not lucky - deliberate. We refused to even look at places without real utilities. The downside is that meant no big garages, but it's looking like this place will be only a 1-1.5 year stay so it's not a big deal. I just really hope we don't end up fucked on property values because of oil prices.
 
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