Oil War and the US

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Sertorio
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Oil War and the US

Post by Sertorio » Thu Mar 26, 2020 4:46 am

Oil execs to Trump: Whose side are you on?
By BEN LEFEBVRE - 03/24/2020

Last August, President Donald Trump stood before workers in Western Pennsylvania, where Shell Oil was building a new natural gas processing facility, and celebrated the nation’s shale boom.

"That’s our gold,” Trump declared. “That’s gold underneath our feet."

For almost the entirety of his administration, Trump has bragged about U.S. “energy dominance” and the riches that oil and gas would bring to the country thanks to his administration’s full-throated support. Now, however, Trump’s dream of a golden, dominant energy industry is almost gone and, industry executives said, so is his full-throated support.

The collapse of energy prices because of the coronavirus crisis, combined with Saudi and Russian refusals to curb production, has already forced the suspension of the Shell project that Trump touted in Western Pennsylvania. The crash is also estimated to knock out about half of all shale producers, according to analysts at Raymond James Inc., if prices remain at between $20 and $30 per barrel. (The price as of midday Monday was $22.73 per barrel by the standard West Texas Intermediate benchmark.) A price at that level would cost thousands of jobs and deal a serious blow to the vision of U.S. energy independence.

"There is no sugar-coating it, U.S. oilfield activity will collapse with oil prices well below $30," on the WTI benchmark, said analyst Praveen Narra of Raymond James in a market update published on March 23. "The pace of rig count declines is likely to occur at a pace we have not seen before."

(...)

https://www.politico.com/news/2020/03/2 ... -on-145927
Trump may want to consider lifting all sanctions against Russia in order to convince Putin to stop this oil price war... :twisted:

Jim the Moron
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Re: Oil War and the US

Post by Jim the Moron » Thu Mar 26, 2020 6:45 am

From the US standpoint, the oil price war is a good thing.

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Sertorio
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Re: Oil War and the US

Post by Sertorio » Thu Mar 26, 2020 7:20 am

Jim the Moron wrote:
Thu Mar 26, 2020 6:45 am
From the US standpoint, the oil price war is a good thing.
Unless you have invested in shale oil... :mrgreen:

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armchair_pundit
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Re: Oil War and the US

Post by armchair_pundit » Thu Mar 26, 2020 7:32 am

And the shale oil will still be there when we need it. Great how that works out, yes?

Some fiat money will change hands, disappear, and reappear when needed. The players will change or not, individual fortunes will change, tis the nature of the game.

But the US and Canada will still have all the oil we need. And will reboot extraction when economical.

Let the Russians and Sauds bleed each other. Consumers rejoice from what little retail price reductions trickle down from the price war.

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Sertorio
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Re: Oil War and the US

Post by Sertorio » Thu Mar 26, 2020 9:16 am

armchair_pundit wrote:
Thu Mar 26, 2020 7:32 am
And the shale oil will still be there when we need it. Great how that works out, yes?

Some fiat money will change hands, disappear, and reappear when needed. The players will change or not, individual fortunes will change, tis the nature of the game.

But the US and Canada will still have all the oil we need. And will reboot extraction when economical.

Let the Russians and Sauds bleed each other. Consumers rejoice from what little retail price reductions trickle down from the price war.
Hopefully in a few years time oil will not even be considered anymore as a source of energy...

Jim the Moron
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Re: Oil War and the US

Post by Jim the Moron » Thu Mar 26, 2020 9:40 am

And then what will become of the economies of KSA and Russia?

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Sertorio
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Re: Oil War and the US

Post by Sertorio » Thu Mar 26, 2020 9:43 am

Jim the Moron wrote:
Thu Mar 26, 2020 9:40 am
And then what will become of the economies of KSA and Russia?
KSA will raise camels. Russia will produce just about everything but oil... :D

Jim the Moron
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Re: Oil War and the US

Post by Jim the Moron » Thu Mar 26, 2020 10:19 am

Sertorio wrote:
Thu Mar 26, 2020 9:43 am
Jim the Moron wrote:
Thu Mar 26, 2020 9:40 am
And then what will become of the economies of KSA and Russia?
KSA will raise camels. Russia will produce just about everything but oil... :D
Everyone needs a camel or two. Neat critters. Russia? Well, the Olympics sadly have been postponed, but saving me my serruptitious checking out the gymnast Russkie babes without my wife noticing.

neverfail
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Re: Oil War and the US

Post by neverfail » Thu Mar 26, 2020 1:10 pm

Sertorio wrote:
Thu Mar 26, 2020 9:16 am
armchair_pundit wrote:
Thu Mar 26, 2020 7:32 am
And the shale oil will still be there when we need it. Great how that works out, yes?

Some fiat money will change hands, disappear, and reappear when needed. The players will change or not, individual fortunes will change, tis the nature of the game.

But the US and Canada will still have all the oil we need. And will reboot extraction when economical.

Let the Russians and Sauds bleed each other. Consumers rejoice from what little retail price reductions trickle down from the price war.
Hopefully in a few years time oil will not even be considered anymore as a source of energy...
Vain hope! The trouble with cheap oil is that it encourages more useage of it.

Cost versus benefit all of the time.

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Sertorio
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Re: Oil War and the US

Post by Sertorio » Thu Mar 26, 2020 4:34 pm

neverfail wrote:
Thu Mar 26, 2020 1:10 pm
Sertorio wrote:
Thu Mar 26, 2020 9:16 am
armchair_pundit wrote:
Thu Mar 26, 2020 7:32 am
And the shale oil will still be there when we need it. Great how that works out, yes?

Some fiat money will change hands, disappear, and reappear when needed. The players will change or not, individual fortunes will change, tis the nature of the game.

But the US and Canada will still have all the oil we need. And will reboot extraction when economical.

Let the Russians and Sauds bleed each other. Consumers rejoice from what little retail price reductions trickle down from the price war.
Hopefully in a few years time oil will not even be considered anymore as a source of energy...
Vain hope! The trouble with cheap oil is that it encourages more useage of it.

Cost versus benefit all of the time.
You keep forgetting the cost of the negative externalities of the oil industry.

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