EPA is going to burst your gasoline bubble

[JustRalph]

http://hotair.com/archives/2015/01/15/enjoying-cheaper-gas-dont-worry-epa-is-about-to-cause-it-to-go-up-again/

They can't let these prices remain. It hurts their agenda

[MONEY]

This is all about stopping the US companies from competing with OPEC.

[Robert Goren]

The article is wrong. The oil shale boom did not cause the drop prices. The lessening of demand by Europe and China did. The amount of oil produced by oil shale so small compared to the demand, it could not possibly effect the price crude by more than a buck or two. Since you missed it, Europe is in a full scale recession. China growth GDP has dropped from double digits to 5-6%.

[MONEY]

In order cause an oil glut, the Arabs are shipping out oil at record levels. The price of oil has gotten so low that in Texas, the fracking companies have already announced 30,000 layoffs.
The EPAs new rules are just another way the stop the US's oil production.

[MONEY]

The Arabs have won. It's not in the news, but I live in Texas Oil Country and massive layoffs of oil workers have occurred over the last two weeks.

The Arab created Oil Glut + Iran now legally exporting oil & the U.S.A. announcing that in 2018 it will begin to sell oil from the strategic oil reserve have made oil prices two low for American Companies to compete. We are again at the mercy of the Sheikhs & Mullahs.

[thaskalos]

The Arabs have won. It's not in the news, but I live in Texas Oil Country and massive layoffs of oil workers have occurred over the last two weeks.

The Arab created Oil Glut + Iran now legally exporting oil & the U.S.A. announcing that in 2018 it will begin to sell oil from the strategic oil reserve have made oil prices two low for American Companies to compete. We are again at the mercy of the Sheikhs & Mullahs.

Maybe the Texas Oil companies should offer us the option of paying $4.00 a gallon for gas PERMANENTLY...so we could keep their workers employed.

[FantasticDan]

Maybe the Texas Oil companies should offer us the option of paying $4.00 a gallon for gas PERMANENTLY...so we could keep their workers employed. :D :ThmbUp:

[MONEY]

Maybe the Texas Oil companies should offer us the option of paying $4.00 a gallon for gas PERMANENTLY...so we could keep their workers employed.
That's what the Arabs did.

The Texas oil companies are the reason that prices have gone down.
But don't worry about it, in the near future you can thank the Arabs for bringing the gasoline prices up to a $4.00 that you feel comfortable paying.

[Tom]

Democrats are already posturing to pile on with high gas tax increases to pay for the repairs of infrastructures that we already spent 20 trillion dollars on not doing.

[mostpost]

http://hotair.com/archives/2015/01/15/enjoying-cheaper-gas-dont-worry-epa-is-about-to-cause-it-to-go-up-again/

They can't let these prices remain. It hurts their agenda
If the EPA is trying to reduce US domestic oil production, they have failed miserably. According to this,
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPUS1&f=M
2015 has recorded the six highest months for oil production since 1973.

Just Ralph is like an online Zombie. Even months after his PA "death" he keeps popping up spreading nonsense.

[mostpost]

That's what the Arabs did.

The Texas oil companies are the reason that prices have gone down.
But don't worry about it, in the near future you can thank the Arabs for bringing the gasoline prices up to a $4.00 that you feel comfortable paying.
In post #4 you said,
"In order cause an oil glut, the Arabs are shipping out oil at record levels."
This would have the effect of lowering prices. At least that is the way I understand economic theory. But above you say "The Texas oil companies are the reason that prices have gone down." Which is it?"

You blame the Obama administration because you think prices are going up. (They didn't) and you blame the Obama administration because prices are too low and workers are being laid off. Funny how the only time you stand up for workers is if you can bash Obama.

[thaskalos]

That's what the Arabs did.

The Texas oil companies are the reason that prices have gone down.
But don't worry about it, in the near future you can thank the Arabs for bringing the gasoline prices up to a $4.00 that you feel comfortable paying.

Yes, it's those freaking Arabs.

They've got some nerve turning Exxon Mobil into the most profitable company in the world.

[MONEY]

In post #4 you said,
"In order cause an oil glut, the Arabs are shipping out oil at record levels."
This would have the effect of lowering prices. At least that is the way I understand economic theory. But above you say "The Texas oil companies are the reason that prices have gone down." Which is it?"


It's both. If the Arabs did not create the oil glut, both the Arabs & Americans could be oil producers. But the Arabs want all of the oil money not most of it, so they put more oil out into circulation that can be consumed in order to put the competition out of business.

I'm Pro Union, so anything that Obama does that is pro workers I am for.

[Saratoga_Mike]

Yes, it's those freaking Arabs.

They've got some nerve turning Exxon Mobil into the most profitable company in the world.

Exxon isn't the most profitable company in the world or in this country based on operating profit dollars or operating margins. More importantly, their return on invested capital should fall out around 6% this yr, not an impressive stat.

[thaskalos]

Exxon isn't the most profitable company in the world or in this country based on operating profit dollars or operating margins. More importantly, their return on invested capital should fall out around 6% this yr, not an impressive stat.
Exxon Mobil was the world's second-most profitable corporation in 2014. And...while the Arabs were getting blamed for the escalating oil prices of 2007...Exxon reported a record annual profit of 40.6 billion...which was the largest annual profit ever reported by any U.S. company. The SECOND-largest profit ever reported was the $39.5 billion that Exxom made in 2006.

Sorry...I shouldn't have said "second-most profitable in the world."

I should have said the second-most profitable of the Fortune 500 .

[Marshall Bennett]

Just Ralph is like an online Zombie. Even months after his PA "death" he keeps popping up spreading nonsense.
He posted that 11 months ago, right? What are you talking about?

[MONEY]

It's both. If the Arabs did not create the oil glut, both the Arabs & Americans could be oil producers. But the Arabs want all of the oil money not most of it, so they put more oil out into circulation that can be consumed in order to put the competition out of business.


Now that OPEC with help from the EPA has succeeded in bankrupting many USA oil producers you can expect the Arabs to start cutting production in order to raise crude oil prices. For those of us that would rather finance Arab oil, than to support American oil, your wishes will come true.


http://www.msn.com/en-us/money/markets/saudi-oil-minister-were-working-with-opec-to-stabilize-market/ar-BBnc4sO?ocid=spartandhp

[_______]

Now that OPEC with help from the EPA has succeeded in bankrupting many USA oil producers you can expect the Arabs to start cutting production in order to raise crude oil prices. For those of us that would rather finance Arab oil, than to support American oil, your wishes will come true.


http://www.msn.com/en-us/money/markets/saudi-oil-minister-were-working-with-opec-to-stabilize-market/ar-BBnc4sO?ocid=spartandhp

As someone who follows the energy markets closely, I have to ask what bankrupt U.S. producers you are referencing? There has been very little consolidation and virtually no bankruptcies outside of hyper minor operators. The U.S. remains on track in 2015 to be the largest producer of gas and oil in the world.

I think 2016 is likely to be the year you start seeing some consolidation as low prices and higher financing costs pressure the marginal operators. But it hasn't happened yet.

OPEC reacted to protect market share under pressure from U.S. producers. You have it exactly backwards in placing them as the generators of what has happened in the oil markets. U.S. shale remains one of the great triumphs of American capitalism in our lifetimes. The next time you buy gas, be sure to thank the engineers and executives at small nimble U.S. operators who have made the low price you pay possible.

[MONEY]

As someone who follows the energy markets closely, I have to ask what bankrupt U.S. producers you are referencing? There has been very little consolidation and virtually no bankruptcies outside of hyper minor operators. The U.S. remains on track in 2015 to be the largest producer of gas and oil in the world.

I think 2016 is likely to be the year you start seeing some consolidation as low prices and higher financing costs pressure the marginal operators. But it hasn't happened yet.

OPEC reacted to protect market share under pressure from U.S. producers. You have it exactly backwards in placing them as the generators of what has happened in the oil markets. U.S. shale remains one of the great triumphs of American capitalism in our lifetimes. The next time you buy gas, be sure to thank the engineers and executives at small nimble U.S. operators who have made the low price you pay possible.

I live in Texas, and I know lots of workers in the oil industry, about half of them have been laid off in the last couple of months. Many oil producers have stopped operations because they can not produce oil for less than what they can sell it for.

[_______]

I live in Texas, and I know lots of workers in the oil industry, about half of them have been laid off in the last couple of months. Many oil producers have stopped operations because they can not produce oil for less than what they can sell it for.

Companies taking action to reduce costs is what happens when prices fall. That doesn't mean they have gone out of business.

You have an anecdote about companies stopping operations. I find that surprising. The LAST thing a struggling operator would want to do is to stop production at any price since the costs for a producing well are all front loaded. And I would be most surprised at that happening in Texas where production costs are the lowest anywhere outside of the Middle East. What you are seeing is marginal operators no longer starting new wells.

Production in the U.S. has finally plateaued. But we will still produce more oil in 2015 than we did in 2014. That can be fact checked and I welcome your doing so.

I'm not suggesting there isn't pain in the industry. This is how the market operates. Unprofitable players are going to go away. But that will still leave an enormous gap in where U.S. oil production was 10 years ago and where it will be going forward.

If OPEC's intent was to end U.S. Shale, it will have failed miserably.

[MONEY]

I understand that the US produced lots of oil in 2015. But because of the alliance against US oil the future looks dim.

Below is a link to what major companies are going through.

http://unconenergy.com/category/energy-layoffs/

Houston-based National Oilwell Varco Inc. (NYSE: NOV) is closing two more Houston facilities which will result in the loss of 85 more jobs.

Houston-based ConocoPhillips (NYSE: COP) plans to cut even more jobs as oil prices remain low and the industry downturn continues.The oil giant plans to cut 1,800 employees, or 10 percent of its workforce worldwide, mostly from North America, spokesman Daren Beaudo confirmed Sept. 1. About 1,000 core contractors also are expected to be cut.In Houston, more than 500 of ConocoPhillips’ 3,753 local employees will be cut.

[_______]

I understand that the US produced lots of oil in 2015. But because of the alliance against US oil the future looks dim.

Below is a link to what major companies are going through.

http://unconenergy.com/category/energy-layoffs/

I don't want to be a troll that picks out one word from a post and ignores the overall theme but you cited bankruptcies of U.S. energy firms and those simply don't exist at this time.

What you are now citing is the normal cyclical reaction to low prices. This is something the supermajors have been through multiple times going back more than 150 years. This one is supposed to be the exception that wipes out production? I don't know how you reach that conclusion.

We haven't seen consolidations in E and P at all. That is coming. But it will result in more efficient production going forward.

As I said before, you and others have it backwards. OPEC is playing defense here. For the first time since OPEC was created, market forces are determining the price of oil, not a cartel. The marginal cost of North American production will remain the determining factor in pricing in the foreseeable future.

[delayjf]

If I understand this correctly, OPEC has increased production to lower the price of oil to the point that US oil produces can no longer extract shale oil and make a profit.

Any idea as to what the bottom might be or how low does the price of oil have to got to shut down shale oil production?

[MONEY]

If I understand this correctly, OPEC has increased production to lower the price of oil to the point that US oil produces can no longer extract shale oil and make a profit.

Any idea as to what the bottom might be or how low does the price of oil have to got to shut down shale oil production?
This is what I'm trying to say. OPEC has brought the price so low that USA oil producers can no longer compete.
I used the word BANKRUPT for the problem, which I guess was the wrong word.
I should have said that many oil industry businesses, especially oil hauling businesses have been shut down.

Schneider National had over 100 trucks hauling oil 24 hours a day, now they have none.

Suncoast was doing the same as as Schneider & now has only about a dozen trucks working part time.

Gulfmark was paying by the hour and is now paying by the load & not guaranteeing work.

Two of my neighbors that were oil field engineers have not been able to find work and are facing foreclosure.

Even Halliburton has taken huge losses due to low price of oil.
http://fuelfix.com/blog/2015/10/19/halliburton-posts-54-million-loss-amid-slumping-oil-field-activity/#36089101=0

[Saratoga_Mike]

Exxon Mobil was the world's second-most profitable corporation in 2014. And...while the Arabs were getting blamed for the escalating oil prices of 2007...Exxon reported a record annual profit of 40.6 billion...which was the largest annual profit ever reported by any U.S. company. The SECOND-largest profit ever reported was the $39.5 billion that Exxom made in 2006.

Sorry...I shouldn't have said "second-most profitable in the world."

I should have said the second-most profitable of the Fortune 500 .

Sorry, I was referring to this year. In any case, measuring Exxon's profitability in dollar terms without considering the massive amounts of capital deployed doesn't seem appropriate to me. But let's put all this aside. Would you suggest we regulate their profits? If so, do you support regulating the profits of other businesses?