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Oil prices keep plummeting as OPEC starts a price war with the US
Oil prices keep plummeting as OPEC starts a price war with the US - Vox
http://www.cnbc.com/id/102224471?__s...doc=102224471#.
Nothing wrong with lower gas prices, no matter what the reason...
Funny things can happen when a little free market captializm (in the US) is allowed to kick butt. It would have been much lower much sooner if those who think they are smarter than the free market got in the way. Mike
Hope it keeps going down!! Free market always win , someday the pipeline will be built because they cannot do this forever
Petrols still NZ$2.06 A litre.... in NZ
Diesols NZ$1.39 a litre.
Nz$ is worth US$0.70 cents I think.
Work that into US gallons. I can't, our 44 gallon drums hold 210 litres........
Quite a few frackers (and their pumps) will be going out of business if this keeps up for more then 6 months. As it is they barely make any money. Of course the Russians will be hurt much more then us, same with other oil producers who don't produce anything else of value.
the problem is that theyre quick to raise prices but dont seem too keen to lower prices when oil price drops
here in SA, the price has gone up from around R3.00 per litre in 2001 to almost R13 per litre
cant blame oil price for everything.
greed is the main reason for this.
I'm scratching my head here... Isn't the game OK for the guys who have producing wells? They've spent their money and now with the lower prices they just have to pump longer to pay the initial drilling cost off. Admittedly, they are in trouble if their well won't produce enough by the time its sucked dry to pay off the initial costs.
Now, for a guy who is preparing to drill, he has to predict if his hole will produce enough juice to make it worth the up front cost....
Jon.
As posted above, what this is going to hurt is "alternative" drilling/oil refining. Things like fracking have a higher cost and need oil prices to stay up to be in the black. Another example would be the oil sands in Canada. Oil can be extracted from the oil sands (and is) but it costs more than just drilling a hole in the ground and pumping out the oil. These companies need oil to stay high or they operate in the red. If OPEC lets the prices drop, it could put a lot of the smaller "alternative" companies out of business, maybe even some big ones.Quote:
Originally Posted by sawmilleng
"Geologic formations may contain large quantities of oil or gas, but have a poor flow rate due to low permeability, or from damage or clogging of the formation during drilling. This is particularly true for tight sands, shales and coalbed methane formations. Hydraulic fracturing (aka fracking, which rhymes with cracking) stimulates wells drilled into these formations, making profitable otherwise prohibitively expensive extraction. Within the past decade, the combination of hydraulic fracturing with horizontal drilling has opened up shale deposits across the country and brought large-scale natural gas drilling to new regions."
http://www.earthworksaction.org/issu...1#.VHoQkNLF-zk
"Oil sands reserves have only recently been considered to be part of the world's oil reserves, as higher oil prices and new technology enable profitable extraction and processing. Oil produced from bitumen sands is often referred to as unconventional oil or crude bitumen, to distinguish it from liquid hydrocarbons produced from traditional oil wells."
http://en.wikipedia.org/wiki/Oil_sands
On a side note, ironically, as oil drops the dollar strengthens, which of course means gold continues to drop. Bad news for those of us into e-scrap. This may be a preview of the next 6 months for gold, gold on life-support.
http://www.kitco.com/images/live/gol...72198997996747
Change your strategy! Gold goes down, start doing refurbs and selling at more than scrap value.
Same goes for anything else. 1. Fracking will not stop, MOST of the result for it is natural gas which has been pretty stable. Lower prices also mean a boon for the corporate market. There has been an artificial inflation in energy costs for about 10 years now, maybe we can get back to sensible prices for everything from food to heating the house. I still remember paying 88 cents a gallon for propane, and that's been a while. The only industries these prices really affect negatively (my own opinion) are built around wall street, futures, speculations, complicated mutual funds...etc. Which...is bad business ANYWAYS. We may see a purge of bad business practices and an increase in employment numbers over the next six to eight months.
Second, I'm from louisiana, if you think that means less jobs in the oil and gas industry I can tell you that's quite the contrary. If anything there will be more exploration, drilling and capping while the costs to do so are down and leases get cheaper. Gentleman, I think we are in for a boon like we have not seen in twenty five years. Just wait ;)
your paying $9.36 a gallon in NZ dollarsQuote:
Originally Posted by eesakiwi
If you were our currency it would be around $11 a gallon
1 US gallon = 3.78541 litersQuote:
Originally Posted by NHscrapman
NZ$2.06 per liter = NZ$7.80 per US gallon (US $6.12 @ NZ$1.00 = US$0.78)
No wonder Eesakiwi walks everywhere.
I stand corrected.:)
I had started a thread over on the "Off-Topic Discussions" but no one commented on it. It might fit a bit better here.
Because this discussion falls in my general work topic about how people use land, I did a little web researching this afternoon. I'm by no means a petroleum expert but I do remember hearing about West Texas "sweet light" crude and Middle Eastern "sour" oil so I looked up what are some the regional differences in petroleum and what's some of the break even points for some of the newer extration that is going on. So here are some links. Don't think oil pumping is going to stop in ND or out of the Can tar sands with low oil prices but the pace of new extraction may slow down. But everyone knows the stuff is still there and prices won't stay down forever...
Benchmark (crude oil) - Wikipedia, the free encyclopedia
What do falling oil prices mean for U.S. shale plays?
Bakken crude is a bit more wild stuff:
Bakken Shale Oil Carries High Combustion Risk - WSJ
Quarter of new Canadian oil projects vulnerable if oil falls below US$80: IEA | Financial Post
Spot Prices for Crude Oil and Petroleum Products
Full article at Scrap Metal Forum: http://www.scrapmetalforum.com/off-t...#ixzz3KVqm5Rq2
Even though it hurts E-Scrap, there's still opportunity. I'm pushing a lot more into refurbishing systems. This means that a lot of the "E-Waste" can be reused in the form of parts. For the newer machines, this means that you'll probably receive more for your parts.
Pentium IIs, though- you're on your own.
Every server I get lists its parts as new and USED.
If oil drops too much you will see the tar sands hit the hardest because you need quite a bit of energy to extract oil from them (very messy too).