Quote from: supsalemgr on January 10, 2016, 05:06:21 AM
If Saudi Arabia is near bankruptcy can we imagine the shape Russia is in.

Makes you wonder about Putin's end-game for being in Syria and propping up Iran. 

Quote from: Dori on January 10, 2016, 10:01:15 AM
Makes you wonder about Putin's end-game for being in Syria and propping up Iran.

Distraction. By fanning the flames of nationalism he is hoping to take the Russian people's minds off of how bad the economy is.

Obama is doing the same thing with other things like gun control and climate change.

Quote from: supsalemgr on January 10, 2016, 10:52:07 AM
Distraction. By fanning the flames of nationalism he is hoping to take the Russian people's minds off of how bad the economy is.

Obama is doing the same thing with other things like gun control and climate change.

Or maybe Putin's involvement in Syria is meant to distract us from what he's doing elsewhere. 

Quote from: Dori on January 10, 2016, 11:19:45 AM
Or maybe Putin's involvement in Syria is meant to distract us from what he's doing elsewhere.

I think has figured out he does not need to distract Obama as Obama is not going to do anything anyway.

Quote from: supsalemgr on January 10, 2016, 05:06:21 AM
If Saudi Arabia is near bankruptcy can we imagine the shape Russia is in.

http://www.foxbusiness.com/markets/2016/01/12/u-s-oil-prices-dip-below-30-barrel-first-time-since-03.html

The bad news for SA, Russia, Iran and ISIS keeps coming. The article says the heavy oil from Iraq and Canada is nearer to $20 per barrel. Agreed, this is not good for the US oil industry, but our oil people have learned how to deal with these conditions. They can cap wells and come back when the market is better. These other countries need the cash now to pay the light and water bills.

Quote from: supsalemgr on January 12, 2016, 12:48:37 PM
http://www.foxbusiness.com/markets/2016/01/12/u-s-oil-prices-dip-below-30-barrel-first-time-since-03.html

The bad news for SA, Russia, Iran and ISIS keeps coming. The article says the heavy oil from Iraq and Canada is nearer to $20 per barrel. Agreed, this is not good for the US oil industry, but our oil people have learned how to deal with these conditions. They can cap wells and come back when the market is better. These other countries need the cash now to pay the light and water bills.

Sorry sup, but it is not as easy as you imply.

The main difference between our oil production and theirs is that their oil is nationalized.  We have publicly owned companies.  Low oil prices directly hit the government coffers in the other countries.  It hits the pocketbooks of all investors in America.

Plus, it is not as easy as just capping off the wells and returning to them later.  There are massive layoffs, massive reduction in production assets (you cannot pay for leases when you have no production), and a huge loss in overall assets.  It is very difficult to stop the downward spiral.  You lose your ability to attract top tier management.  Everything goes to hell in a handbasket..... and the government is virtually untouched by this disaster.  Only the largest of oil companies can survive. And that is because of their overseas assets.

American production is very expensive because of the cost of fracking, injection, and shale production.  Internationally there are still fields that produce the old fashioned way.  And the cost of labor is sustainable.  That will literally keep some companies hanging on.  Smaller companies won't make it.

The difference between us and OPEC is that we are capitalists!  It hurts the "little people" here but the "elitists" there!

Quote from: kroz on January 12, 2016, 03:00:27 PM
Sorry sup, but it is not as easy as you imply.

The main difference between our oil production and theirs is that their oil is nationalized.  We have publicly owned companies.  Low oil prices directly hit the government coffers in the other countries.  It hits the pocketbooks of all investors in America.

Plus, it is not as easy as just capping off the wells and returning to them later.  There are massive layoffs, massive reduction in production assets (you cannot pay for leases when you have no production), and a huge loss in overall assets.  It is very difficult to stop the downward spiral.  You lose your ability to attract top tier management.  Everything goes to hell in a handbasket..... and the government is virtually untouched by this disaster.  Only the largest of oil companies can survive. And that is because of their overseas assets.

American production is very expensive because of the cost of fracking, injection, and shale production.  Internationally there are still fields that produce the old fashioned way.  And the cost of labor is sustainable.  That will literally keep some companies hanging on.  Smaller companies won't make it.

The difference between us and OPEC is that we are capitalists!  It hurts the "little people" here but the "elitists" there!

I am well aware of the boom or bust nature of the oil business in the US I lived in MS during the 70's and witnessed first hand how the boom and then the bust then affected the business in LA and MS. My point is the independents know the risk and most plan for the downturn. Yes, people get laid off, but they chose to be roughnecks and work 7 on/7 0ff on rigs with excellent pay. We are so much better off because our oil industry is private. My main point is these nationalistic oil companies become too dependent on oil revenues for their national revenues.