Lets hope The Bakken/Threeforks will decrease our demand for foreign oil. And will keep oil at a reasonable price, but not so we are giving it away.
On Oct 19, 3:51 am, David <[EMAIL PROTECTED]> wrote: > OPEC has a bit weird view of how supply, demand and markets work. If > the demand for oil is inelastic, cutting back on output should not > only cause the price to increase but also increase gross oil revenues. > The problem is that there are a lot of other non-OPEC players in the > market that control a significant share of oil output. To the extent > that OPEC tactics initially work, these other players will see this as > an opportunity to INCREASE not decrease output to take advantage of > the higher prices. As a consequence, gross revenues to the OPEC cartel > might not increase by nearly as much as OPEC hopes, nor prices, as > other non-OPEC players increasingly supply the oil OPEC is not > producing and OPEC companies keep losing market share to non-OPEC > countries. > > OPEC's view of the world is that the cartel still has enough of a > monopoly on oil production that by their actions they can > significantly alter worldwide oil supplies and prices. I tend to > believe otherwise, but the coming weeks and months should prove either > me or OPEC correct. > > Actually, being an oil "producer" myself now, I wish OPEC all the > best. I do tend to think that the crude markets right now are deeply > oversold, but futures contract pricing for the moment has built into > it the belief that we are headed into a deep, steep, long, global > recession. I tend to not be that pessimistic about the future. And the > steep decline we have seen in gasoline prices in recent weeks should > be a factor in helping to mitigate the coming recession. > > Also, EOG and other oil producers always have the option of "slowing > down the pumps" and pumping less oil than before in each month waiting > for prices to rebound. THe mineral interest owners may grumble about > lower current royalty checks, but oil not pumped today an still be > pumped in the future when prices rebound. > > I'm not sure what all this short-term volatility does to drilling > activity, but the cost of hiring a rig and crew must be starting to > come down from 6 months ago, making wells cheaper to drill. One option > is to keep drilling but simply not pump the new wells out as fast for > now. > > On Oct 19, 3:52 am, "paul giannotta" <[EMAIL PROTECTED]> wrote: > > > > > There only objective is to get oil back to $100 per barrel! They have game > > right out and said that! They will cut production until they recieve there > > goal. They are cutting at 500,000 barrel at a time. Next cut will put it at > > 1 million and counting, at 40% of our total consumption they have some > > "clout" Lets sit back and watch the power of the > > turbine. > > > ``````````````````````````````````````````````````````````````````````````` > > ````````````````````````````````````````````````````````````` > > > On Sat, Oct 18, 2008 at 7:32 PM, JDH <[EMAIL PROTECTED]> wrote: > > > > I agree that they are dirt bags, but after they got a taste of $100 > > > barrel oil I think that they will do anything to get it back. They are > > > holding the cards. > > > > On Oct 18, 8:04 pm, Larry <[EMAIL PROTECTED]> wrote: > > > > What OPEC says they will do and what OPEC actually does are mutually > > > > exclusive events. > > > > > We will not know what OPEC has done or not done until prices start > > > > of moving one way or the other. > > > > > We have all seen the bank robber movies where the crooks start > > > > cheating each other as they divide the loot. That is my concept of > > > > OPEC members. > > > > > Believing an OPEC statement can be hazardous to your financial health. > > > > > On Oct 18, 5:53 pm, JDH <[EMAIL PROTECTED]> wrote: > > > > > > Correction Goes back to $100 barrel. > > > > > > On Oct 18, 4:50 pm, JDH <[EMAIL PROTECTED]> wrote: > > > > > > > Looks like OPEC is going to make sure oil stays at $100 barrel . If > > > > > > I > > > > > > understand it right meeting today they decided to cut production by > > > > > > half million barrels a day. Did anyone else understand different? > > > Good > > > > > > or bad?- Hide quoted text - > > > > > > - Show quoted text -- Hide quoted text - > > > - Show quoted text -- Hide quoted text - > > - Show quoted text - --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Bakken Shale Discussion" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/bakken-shale-discussion?hl=en -~----------~----~----~----~------~----~------~--~---
