Why Are Gas Prices So Low?

Cpappa27

Cpappa27

Well-Known Member
It just hit $1.93 a gallon here today. I've read a bunch of articles and it seems like they each have a different reasoning. Anyone know what the real truth is cause I don't know what to believe.
 
dbkick

dbkick

Well-Known Member
I don't know but I get about 16 mpg and don't mind cheap gas a bit. They say it isn't a good sign but who knows.
 
budlover13

budlover13

King Tut
There is an excess of oil on the global market and OPEC refuses to cut production to maintain a stable price.

The speculation that I have read is that they are doing this to drive oil prices below $60 a barrel and keep them there long enough to shut down shale oil fracking production in North America because it's only profitable at prices above $55 a barrel.

Again, speculation.
 
C

ChesusRice

Well-Known Member
budlover13 said:
There is an excess of oil on the global market and OPEC refuses to cut production to maintain a stable price..


The speculation that I have read is that they are doing this to drive oil prices below $60 a barrel and keep them there long enough to shut down shale oil fracking production in North America because it's only profitable at prices above $55 a barrel.

Again, speculation.
Click to expand...
Most fracking is still profitable at 40 a barrel
But then again. It's a win win win situation.
If you shut down fracking here. The oil will still be there when the price goes up or the overseas oil runs out
 
Abiqua

Abiqua

Well-Known Member
and the bond markets are leveraged so as oil drops per barrerl, your interest rate skyrockets while your returns are shit. Shale oil is looking for more like $100 to break even, when calculating the debt, not just development....@$140 last year they were fat pigs....
Also no one is going to mention russia and china about to evade the dollar standard?
 
budlover13

budlover13

King Tut
ChesusRice said:
Most fracking is still profitable at 40 a barrel
But then again. It's a win win win situation.
If you shut down fracking here. The oil will still be there when the price goes up or the overseas oil runs out
Click to expand...
Very true. I'm not too upset over it for that very reason.
 
Abiqua

Abiqua

Well-Known Member
Investment in shale is dropping and already a few companies have declared bankruptcy......
 
budlover13

budlover13

King Tut
Abiqua said:
and the bond markets are leveraged so as oil drops per barrerl, your interest rate skyrockets while your returns are shit. Shale oil is looking for more like $100 to break even, when calculating the debt, not just development....@$140 last year they were fat pigs....
Also no one is going to mention russia and china about to evade the dollar standard?
Click to expand...
Evading the US dollar has been in the works for a while now. Hell, imo, that's the reason Qadafi was murdered.
 
Abiqua

Abiqua

Well-Known Member
ChesusRice said:
Most fracking is still profitable at 40 a barrel
But then again. It's a win win win situation.
If you shut down fracking here. The oil will still be there when the price goes up or the overseas oil runs out
Click to expand...
Umm just to point out Saudi's well have been running for 75 years or so, if not longer and still producing. There are still Iraqi fields almost as large [2x] just coming online as of 2013......they will wait it out for decades.....

then shale oil will become like the endless amounts of coal we have, but don't use because it aint worth it....
 
C

ChesusRice

Well-Known Member
Abiqua said:
Umm just to point out Saudi's well have been running for 75 years or so, if not longer and still producing. There are still Iraqi fields almost as large [2x] just coming online as of 2013......they will wait it out for decades.....

then shale oil will become like the endless amounts of coal we have, but don't use because it aint worth it....
Click to expand...
win win win still
 
Abiqua

Abiqua

Well-Known Member
budlover13 said:
Evading the US dollar has been in the works for a while now. Hell, imo, that's the reason Qadafi was murdered.
Click to expand...
Well of course, not only were Libya and Iran the only two independent states WITHOUT a roschscum backed Central Bank, but Qadafi was debt free and had just built the Great Man-Made River, google it, not all wars are fought over oil in the desert, it seems....:peace:
 
budlover13

budlover13

King Tut
Then throw in the Saudi king dying and the prince being 79 AND next door to Yemen who just got taken over by ISIS.....
 
budlover13

budlover13

King Tut
Abiqua said:
Well of course, not only were Libya and Iran the only two independent states WITHOUT a roschscum backed Central Bank, but Qadafi was debt free and had just built the Great Man-Made River, google it, not all wars are fought over oil in the desert, it seems....:peace:
Click to expand...
And they convinced him to give up his nukes....
 
Abiqua

Abiqua

Well-Known Member
ChesusRice said:
Had nothing to do with him being on the terrorist list for 25 years
blowing up our passenger planes
and the target of regime change since Reagan?
Click to expand...
and......the link is more sour than 9/11 and "terrorists working alone"

I mean we are going to cover for Reagan while he was out letting the CIA run the drug trade, mmmkay....

and started this little group called "the database" or "the list" aka Al qaeda

Just call me Tim Osman!
 
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