[thickstunalex]

I remember when I had my Pontiac GTO and filled the tank with 93 at $4/gal. I rang up $70 at the pump. The GTO was also my daily driver, and I drove a lot.

Flash forward to now, and we have much more domestic production to offset crazy-high fluctuations. My 2SS is much more fuel efficient than the GTO, and adds 55 extra hps.

Cheap oil was nice on our pockets, but the whole premise behind it was OPEC wanted to kill of the new shale market in the US. They wanted to see us out of business so they could gain back control of the oil market. They failed...

It hurt 3rd worlds nations the hardest, and ruined Russia's economy who's government is 70% vested in oil profits. All the while OPEC was watching to find out just how resilient American domestic production was. Some jobs were lost and production cut, but none of the companies folded under. Oh, and Americans are depending less and less on fossil fuels each year. Automobiles across the line are getting more fuel efficient. We have a greater energy production portfolio of natural gas, wind, and solar now.

OPEC can no longer control the world oil market like they did in the 1970's. We should actually be rejoicing!

[MiamiBlueCamaro]

Like this?

[Michigan1LTRS]

Originally Posted by thickstunalex

I remember when I had my Pontiac GTO and filled the tank with 93 at $4/gal. I rang up $70 at the pump. The GTO was also my daily driver, and I drove a lot.

Flash forward to now, and we have much more domestic production to offset crazy-high fluctuations. My 2SS is almost twice as fuel efficient at the GTO, and adds 55 extra hps.

Cheap oil was nice on our pockets, but the whole premise behind it was OPEC wanted to kill of the new shale market in the US. They wanted to see us out of business so they could gain back control of the oil market. They failed...

It hurt 3rd worlds nations the hardest, and ruined Russia's economy who's government is 70% vested in oil profits. All the while OPEC was watching to find out just how resilient American domestic production was. Some jobs were lost and production cut, but none of the companies folded under. Oh, and Americans are depending less and less on fossil fuels each year. Automobiles across the line are getting more fuel efficient. We have a greater energy production portfolio of natural gas, wind, and solar now.

OPEC can no longer control the world oil market like they did in the 1970's. We should actually be rejoicing!

brother!

[Foxrus14]

I hope it goes up a $1 a gallon in the next 6 months. Will kick start oil and gas industry. Its needed very badly!

[CAM-FIFTY]

I highly doubt oil prices will go up to the level when premium was at $4/gal, we are producing far more oil in US now then how it was 6-7 years back then. I think this production will go up even further under Trump administration as they will remove many of the environmental restrictions put in place by Obama administration.

[whiteboyblues2001]

The Saudis tried to kill the US fracking (and other "unconventional oil" producers) by flooding the market. Turns out, the fracking industry got hurt, but not killed off. They can't frack much at $30/barrel, but right now, oil is approx. $50/barrel. If it goes even to $60 (and there is confidence it will stay there), the frackers will start drilling again, and supply will increase containing prices. This will be good for US energy jobs, but gas will go up a bit. BUT, I highly doubt we will see $100-$140/barrel like we saw before the frackers came onto the scene. I am comfortable paying a bit more in exchange for more US jobs.

And don't forget, the Russians and others constantly cheat on these quotas all the time. The Saudis may end up getting hurt more than anyone. They will lose market share, and the price will not recover to pre-fracking levels.

[Padre]

Originally Posted by thickstunalex

I remember when I had my Pontiac GTO and filled the tank with 93 at $4/gal. I rang up $70 at the pump. The GTO was also my daily driver, and I drove a lot.

Flash forward to now, and we have much more domestic production to offset crazy-high fluctuations. My 2SS is much more fuel efficient than the GTO, and adds 55 extra hps.

Cheap oil was nice on our pockets, but the whole premise behind it was OPEC wanted to kill of the new shale market in the US. They wanted to see us out of business so they could gain back control of the oil market. They failed...

It hurt 3rd worlds nations the hardest, and ruined Russia's economy who's government is 70% vested in oil profits. All the while OPEC was watching to find out just how resilient American domestic production was. Some jobs were lost and production cut, but none of the companies folded under. Oh, and Americans are depending less and less on fossil fuels each year. Automobiles across the line are getting more fuel efficient. We have a greater energy production portfolio of natural gas, wind, and solar now.

OPEC can no longer control the world oil market like they did in the 1970's. We should actually be rejoicing!

×2

Also, I would like to see the elimination of the burning of food (ethanol), which will go a long way towards helping the third world, food prices, the climate, fuel efficiency, etc.

http://reason.com/archives/2014/05/0...hanol-disaster

One tank of ethanol-mixed fuel burns the same calories as a person consumes in a year. And ethanol production has led to more clear-cutting of rainforests.

Padre

[Slem]

Hmmmmm, just topped up with 94 octane yesterday, its was $1.20 for a litre , so what is that like? Close to $3.74 per gallon or more.

[Lafourche1]

Originally Posted by thickstunalex

I remember when I had my Pontiac GTO and filled the tank with 93 at $4/gal. I rang up $70 at the pump. The GTO was also my daily driver, and I drove a lot.

Flash forward to now, and we have much more domestic production to offset crazy-high fluctuations. My 2SS is much more fuel efficient than the GTO, and adds 55 extra hps.

Cheap oil was nice on our pockets, but the whole premise behind it was OPEC wanted to kill of the new shale market in the US. They wanted to see us out of business so they could gain back control of the oil market. They failed...

It hurt 3rd worlds nations the hardest, and ruined Russia's economy who's government is 70% vested in oil profits. All the while OPEC was watching to find out just how resilient American domestic production was. Some jobs were lost and production cut, but none of the companies folded under. Oh, and Americans are depending less and less on fossil fuels each year. Automobiles across the line are getting more fuel efficient. We have a greater energy production portfolio of natural gas, wind, and solar now.

OPEC can no longer control the world oil market like they did in the 1970's. We should actually be rejoicing!

Actually many of the independents (Stone Energy, The Superior, etc.) did go out of business. This also includes many of the service companies. The point of profitability for fracking and heavy oil (FRASH process) production is much higher (~$100 per barrel or more -- sand tars ~$140 per barrel). Terrebone Parish has ~20% unemployment. Other Parishes are in the ~15%-18% unemployment.

Just to be clear, Saudi is producing more natural gas. The Kingdom used to just flare off the gas as being too much trouble to fool with. Their focus has been conversion of their country to use natural gas as their main, cleaner power source. The gas reserves actually are deeper than their oil reserves. They are using it for electricity and desalination. They are still actively drilling for oil, as well. A single well in Saudi produces some 60,000 barrels of oil per day. Most domestic wells produce a few hundred per day. Stripper wells produce much less.

[Marine Corps]

So!!! Are you going to park your Camaro in the garage?

[SpookShow'84]

We're going to be fine. Maybe a slight bump. Their announcement and the Wolfcamp discovery are directly related. It's the largest domestic strike ever, 20+ billion barrels, in addition to our off shore and dakota stuff. OPEC can suck it.

https://www.usgs.gov/news/usgs-estim...hale-formation

[mt3130]

Originally Posted by SpookShow'84

We're going to be fine. Maybe a slight bump. Their announcement and the Wolfcamp discovery are directly related. It's the largest domestic strike ever, 20+ billion barrels, in addition to our off shore and dakota stuff. OPEC can suck it.

https://www.usgs.gov/news/usgs-estim...hale-formation

I was just reading about this and came to say the same thing.

[Software Guy]

Originally Posted by avalonandl

2 years ago we were paying $3 a gallon.....

I remember paying $4.25 for premium. I also remember paying .79 for regular! I could go a long way on $10.

[whiteboyblues2001]

Originally Posted by thickstunalex

I remember when I had my Pontiac GTO and filled the tank with 93 at $4/gal. I rang up $70 at the pump. The GTO was also my daily driver, and I drove a lot.

Flash forward to now, and we have much more domestic production to offset crazy-high fluctuations. My 2SS is much more fuel efficient than the GTO, and adds 55 extra hps.

Cheap oil was nice on our pockets, but the whole premise behind it was OPEC wanted to kill of the new shale market in the US. They wanted to see us out of business so they could gain back control of the oil market. They failed...

It hurt 3rd worlds nations the hardest, and ruined Russia's economy who's government is 70% vested in oil profits. All the while OPEC was watching to find out just how resilient American domestic production was. Some jobs were lost and production cut, but none of the companies folded under. Oh, and Americans are depending less and less on fossil fuels each year. Automobiles across the line are getting more fuel efficient. We have a greater energy production portfolio of natural gas, wind, and solar now.

OPEC can no longer control the world oil market like they did in the 1970's. We should actually be rejoicing!

Excellent post, BUT, a lot of companies (smaller ones that borrowed a lot of money to get going) went out of business, and there have been a ton of layoffs in the fracking areas. There has been very little new drilling in the last year. Production went down a bit as existing wells start to produce at lower levels. But new well drilling has all but stopped, putting a lot of folks out of business and out of a job.

BUT, when a startup company that had huge loans goes bankrupt, the debt gets wiped out and the assets (equipment and leases) get sold off to help pay some of the debt off. The company that buys the remnants can now produce oil on that same patch of land for less money, because they don't have to service a big loan like the original company. So the break even price for fracking in that area gets lower. Also, in a lower price environment, everyone is trying to produce more efficiently. This also lowers the break even price.

So, there has been a lot of pain in the energy sector, but the net effect is that the Saudi's were not able to kill unconventional oil. It got knocked down, and got back up more efficient than before. But that doesn't mean there weren't bankruptcies or layoffs. There were a lot of them. Just not enough for the Saudis liking.