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The Trump Administration's War With Reality

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Re: The Trump Administration's War With Reality
Post by Annachie   » Thu May 24, 2018 8:23 pm

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Why is the price of oil being up a good thing for a country that imports oil?
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Re: The Trump Administration's War With Reality
Post by smr   » Fri May 25, 2018 12:13 am

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Depends on your line of work. $65 barrel of oil allows exploration $20 a barrel of oil implodes the industry. The oil industry takes a lot of time to develop an oil field. Not to mention the risks that the industry takes when drilling. Personally, I prefer a steady price of oil which is profitable rather than the boom/busts cycles of oil with extreme spikes and dips of revenue.

https://www.eia.gov/tools/faqs/faq.php?id=727&t=6

How many companies are waiting to restart oil production the shale oil fields? HMMM....HMMM...HMMM...food for thought

Annachie wrote:Why is the price of oil being up a good thing for a country that imports oil?
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Re: The Trump Administration's War With Reality
Post by The E   » Fri May 25, 2018 12:24 am

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smr wrote:Depends on your line of work. $65 barrel of oil allows exploration $20 a barrel of oil implodes the industry. The oil industry takes a lot of time to develop an oil field. Not to mention the risks that the industry takes when drilling. Personally, I prefer a steady price of oil which is profitable rather than the boom/busts cycles of oil with extreme spikes and dips of revenue.

https://www.eia.gov/tools/faqs/faq.php?id=727&t=6

How many companies are waiting to restart oil production the shale oil fields? HMMM....HMMM...HMMM...food for thought

Annachie wrote:Why is the price of oil being up a good thing for a country that imports oil?


Meanwhile, for anyone not owning a stake in the oil business or an adjacent business, a higher oil price means higher cost of living with no increase in income to compensate.

Why is that a good thing, smr?
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Re: The Trump Administration's War With Reality
Post by smr   » Fri May 25, 2018 8:37 am

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$65 for barrel of oil keeps the small shale producers in the game. They employ a lot of people. Second, the shale producers are great response to the power of OPEC. They can ramp up production fairly quickly which prevents the extreme spikes in the price of oil. Third, not having the shale producers in the market allows for the market to be dominated by the big oil companies and OPEC. This is very bad because this hurts all us in the wallet. Consistent oil prices where the big guys make money and the little guys make money allow the whole economy to grow. Consistent avialbility of oil with a consistent price equals lower prices and predictable economic growth.
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Re: The Trump Administration's War With Reality
Post by Starsaber   » Fri May 25, 2018 9:28 pm

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smr wrote:$65 for barrel of oil keeps the small shale producers in the game. They employ a lot of people. Second, the shale producers are great response to the power of OPEC. They can ramp up production fairly quickly which prevents the extreme spikes in the price of oil. Third, not having the shale producers in the market allows for the market to be dominated by the big oil companies and OPEC. This is very bad because this hurts all us in the wallet. Consistent oil prices where the big guys make money and the little guys make money allow the whole economy to grow. Consistent avialbility of oil with a consistent price equals lower prices and predictable economic growth.


The best way to reduce the power of OPEC is to reduce our dependency on oil. Obviously, that's a long-term effort, but it's one that we need to focus on rather than continuing to pander to oil companies (either conventional or shale).
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Re: The Trump Administration's War With Reality
Post by Daryl   » Fri May 25, 2018 11:45 pm

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I'd go further and point out that oil revenues fund much of the terrorist activities in this world. Develop a battery that has the same or better energy density of a petrol (gas) tank, and have electric cars. The Saudi "Royal Family" would end up riding camels as their great grand parents did.
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Re: The Trump Administration's War With Reality
Post by Annachie   » Sat May 26, 2018 5:04 am

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True.
Ultimately, high oil prices helps terrorism.

Also leads companies to try stupidly dangerous stuff like fracking.
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Re: The Trump Administration's War With Reality
Post by Annachie   » Sat May 26, 2018 5:10 am

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Hang on smr, do you mean Tight Oil?

Anything that stops that from happening is a good thing.
~~~~~~~~~~~~~~~~~~
You are so going to die. :p ~~~~ runsforcelery
~~~~~~~~~~~~~~~~~~~
still not dead. :)
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Re: The Trump Administration's War With Reality
Post by smr   » Sat May 26, 2018 12:42 pm

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Tight Oil supplies benefit all the oil companies and OPEC. For the little guys to stay in the business they need oil at 60 - 63 dollars a barrel. So a steady oil price of about $65 a barrel of oil whichs allows the big dogs and the puppies to make money.

The problem is the energy traders...a tanker can be sold for $65 a barrel. That price can be $100 a barrel after being resold 4 to 8 times around the world before that tanker arrives at pre-selected destination.
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Re: The Trump Administration's War With Reality
Post by Annachie   » Sat May 26, 2018 2:20 pm

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Yeah, but fracking fucks the ground, and that's how they get tight oil.

Massive increase in earthquakes and flamable water are the two most obvious problems.
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You are so going to die. :p ~~~~ runsforcelery
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