I'm wondering too what the us may do to protect our industry..
On one hand this sucks as I have a fair amt of shale stocks I held too long and am getting nailed on. OTOH cheap gas is a huge win.
I am curious to where this goes. Venezuela, Russia, Nigeria, Iran, others rely on high oil prices to fund their govt. programs. We could be looking at massive unrest if the price war is sustained. You wonder what their responces will be.
I'm wondering too what the us may do to protect our industry..
Never buy individual stocks. Other people do this for a living; you don't.
Everyone on here thinks they are so smart they can outwit whoever else is trading. You can't, they think about this all day.
Invest in an index fund and call it a day.
The US shale oil industry is in a world of hurt right now. Schlumberger is trying to join with Baker Hughes to survive.
States with budgets based on higher oil revenue such as Texas, Louisiana, North Dakota are in financial trouble too.
Crude oil production peaked in 2005, which is why we are now resorting to shale oil. The problem is that the marginal cost for both is high, which is why debts and capital expenditures are rising. Both will certainly be affected by the lower price, which is caused by economic crisis. On top of that, shale oil is expected to peak in only a few years, much shorter than the period for crude oil.
Never buy individual stocks. Other people do this for a living; you don't.
Everyone on here thinks they are so smart they can outwit whoever else is trading. You can't, they think about this all day.
Invest in an index fund and call it a day.
We produced more in almost every every past 2005. The peak is not quite here yet.
http://www.indexmundi.com/energy.aspx?product=oil&graph=production
So far most of the projections about shale output has been wrong.
Crude oil production peaked in 2005 (see the second chart):
http://crudeoilpeak.info/world-crude-production-2013-without-shale-oil-is-back-to-2005-levels
We have been resorting to shale oil since then.
According to the EIA and the IEA, shale oil production is expected to peak in a few years. Meanwhile, crude oil production may start dropping.
In order to maintain economic growth, we will need the equivalent of one Saudi Arabia every seven years. If the new oil put online has lower energy returns (which is the case for present crude oil and unconventional production), then more will be needed.
Finally, marginal costs require higher oil prices.
From time to time OPEC gets into these internal wars.
They eventually make up and come together after realizing the money they are missing out on.
In a year we all will be crying about $4+ gas at the pump again.
Just enjoy the savings while we can.
And hope America never becomes oil self sufficient because if you really want to see incredibly high oil prices, look to the greed of our own oil companies.
With no competition American oil would bankrupt us all.
OPEC is the only thing currently saving our ass.
Crude oil production peaked in 2005 (see the second chart):
http://crudeoilpeak.info/world-crude-production-2013-without-shale-oil-is-back-to-2005-levels
We have been resorting to shale oil since then.
According to the EIA and the IEA, shale oil production is expected to peak in a few years. Meanwhile, crude oil production may start dropping.
In order to maintain economic growth, we will need the equivalent of one Saudi Arabia every seven years. If the new oil put online has lower energy returns (which is the case for present crude oil and unconventional production), then more will be needed.
Finally, marginal costs require higher oil prices.
That shit is seriously depressing my outlook for the future.
The economy runs on energy, and you're saying time's up.
That shit is seriously depressing my outlook for the future.
The economy runs on energy, and you're saying time's up.
I read an article yesterday that indicated that lots of U.S. shale oil is profitable down to $40 a barrel.http://www.globalresearch.ca/guess-...me-the-price-of-oil-crashed-like-this/5417215
The above text summarizes the gist of the article.
Seems interesting. Apparently some energy companies are funding the search for and extraction of petroleum via fracking. It's a rather expensive way to extract fuel so if the energy prices stay low for any length of time the junk bonds used to fund the their fracking activities could collapse and those junk bonds crash hard enough then it might be bad news.
It's also known that OPEC could very well be raging a price war to put the fracking industry in the North American continent out of business.
http://www.vox.com/2014/11/28/7302827/oil-prices-opec
I'm concerned because all we did in 2008 was bail out the banks. Nothing was really done to address the causes (there is disagreement in the P&N forums about what the causes are of course) that led to the 2008 implosion, now a situation that occurred before the 2008 crash has cropped up again.
Maybe this will be the only thing from the economic climate before the crash of 2008 that recurs and nothing will happen... but it is something to be aware of in my opinion.
....
And think of Russia and Iran and Venezuela and all of those oil sheikdoms. Can it possibly be a bad thing that the leaders of those countries will get all of the blame when cheap oil (further) decimates their economies?
The article you linked doesn't support your claim:
Fern
Managed funds consistently do worse than the S&P 500.Hate to agree with the liberal, but this.
Some asshole in NYC is getting paid millions a year to do this all day, hes going to beat you more often than not.
Never buy individual stocks. Other people do this for a living; you don't.
Everyone on here thinks they are so smart they can outwit whoever else is trading. You can't, they think about this all day.
Invest in an index fund and call it a day.