Crude oil is $86 today.... beginning of the end?

I don't like the Saudis, but what they're doing is called RUNNING A BUSINESS. Any business that can produce a product cheaper than it's competitor will win. That's economics at it's most basic.
There are many reasons to dislike the Saudis, but expecting them to stop making money so the US can produce more expensive oil makes no sense. If prices stay where they are, US production will decrease because our oil costs more to produce than theirs does. Weak and over-leveraged producers will disappear. Like it or not, that's economics.

 

Venezuela is reaping what it has sewn. They allowed Hugo Chavez to rise to power and force private businesses out of the country. You remember him right, the ####### who stood in the UN, on American soil, and called our president "El Diablo". Screw the Venezuelans, they're getting what they deserve. A coup would be the best thing to happen to them.

 

our ports and rail sidings are jammed up with obama supporter buffets rail tankers.we cant afford to build overpasses.coupled with the longeshoremens slowdown for months the west coast is heading for anarchy.
we have used pipelines every where for a century and trains use tons more energy.
the panama canal will be widened soon and the new big ships and freight will be able to bypass the left coast and head for texas and the south east.
haliburton stock is very cheap right now. i got 100 shares2 days ago and its up 1$ but i got a 2$ trailing stop on it.i will jump in and out if i have to when its on the rise

 

Use to go to Lake Cushman back in my Teens lol. I wonder what an Acre or 2 of land out there is going for ma man? Its close enough to get to Bremerton and take a fairy to the Mother Land lol.

 

Don't "like" the Saudis? Well, I can say that funding 9-11 and paying bounties for U.S. Snipers in Iraq makes me hate them. http://nypost.com/2013/12/15/inside-the-saudi-911-coverup/

 

I'm not sure what your point is. I don't use the word hate very often .... it's a little sophomoric for my tastes. I strongly dislike the Saudis, I don't trust them, I don't like their world view and policies towards non-Muslims, I do believe they have links to terrorism. They're a terrible untrustworthy "ally". Ummmmm, what else do I need to say to make you happy ?

 

Saudi Arabia is not a business, it is a country, ran by a form of government that does not have the same economic pressures that a business does or is restricted by the same rules as oil producers in the US. Apples and oranges.
I do agree it is in their best interest to take back market share from shale producers. That part, is economics

 

They are the 800 pound gorilla in OPEC pushing through the decision to maintain production levels even as global demand declines. They also stated publicly that the reason they were helping to crash the market was to shut down American shale producers to maintain their market share. I can understand the rationale behind their decision, doesn't change the fact that they are the ones trying to kill our shale fields. They aren't financially over a barrel, but losing market share is losing power over the global energy market which is literally the only global muscle they can flex outside of terrorism. Really I'm more disturbed that our government would allow the collapse of the shale fields. They can do two very significant things to prevent it, first they can leverage arms sales to back down the Saudi's, second they fill the global demand vacuum by filling up the SPRO (which should be done right now anyway while oil is cheap).

 

Tonight I bought gas, it was $1.74 per gallon, nice to be saving a few dollars when filling up the gas tank. I believe it was NBC nightly news, they said things are looking up in our country, people have more money to spend at the stores to buy their needs, & its helping our economy.

Notice I said needs, not wants.

 

The SPRO is 95% full. At the end of 2013, it held, 696 million barrels, with a total capacity of 727 million.

http://energy.gov/fe/services/petroleum-reserves/strategic-petroleum-reserve

It goes a little deeper than just crashing the shale oil production... at 80 oil, makes alternative energy viable, which also cuts into the Saudi's power.

Our government has never supported the shale oil boom... they have tried to prevent it every step of the way... that is why 90% of all new production in on state and private land. Must defeat big bad oil.