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

Sorry, double post.

 

Russian government warns of recession in 2015

MOSCOW – The Russian government has for the first time acknowledged that the country will fall into recession next year, battered by the combination of Western sanctions and a plunge in the price of its oil exports.

The economic development ministry on Tuesday revised its GDP forecast for 2015 from growth of 1.2 percent to a drop of 0.8 percent. Disposable income is expected to decline by 2.8 percent against the previously expected 0.4 percent growth.


Russia has a solid balance sheet, extremely low sovereign debt and sizeable reserves in foreign currencies, but its dependence on oil leaves it at the mercy of the international market. And its increasing political isolation risks discouraging foreign investment.



For Full article

I feel the prices are down to bring this about in Russia, after they have much troubles the prices will go up, up, & away up!

 

Read that article, and it is part of the mix.

Just remember the Royal family of Saud, has the ability to control the international market.

So long as Europe depends on Russian oil and natural gas, which they refuse to sanction, russia has a market.

And Europe can not look to the US for help, we can not export oil it to them. We can export LNG in limited amounts, but that wont be for another 3 to 4 years before the first port to handle the ships and the gas are completed.

The boom has ended.

 

Actually we have a huge LNG export terminal in Louisiana, and they are breaking ground on a $4 billion expansion as we speak. We are the Saudi Arabia of LNG, and facing has a lot to do with that. Frac wells produce tons of gas on top of the oil which is why I believe they are just as resilient of low oil prices as conventional wells. Anyone who's worked a shale field has seen the massive flare stacking.

 

Wow, what shallow selfishness here. Falling energy prices are the best thing for this country.
Some people don't care about anything except greed.
Screw the rest of the country, long as my personal paycheck stays supersized: that's greed.

 

You do realize that quite a few state economies are heavily dependent on oil and gas. For me it's not just a personal issue, my whole state relies heavily on energy jobs. Oklahoma was a sad place during the last bust.

 

No, the greed is with the big boys who are living large, & you seem to be in love with them, or perhaps its envy.

 

This area is built around the needs of the crews servicing wells being drilled. Prices too low = wells not being drilled = people not hanging around here = dead towns.
That's not greed about my paycheck. That's 300,000 people (well over half a million if you go by the estimates of non-resident oilfield workers) who will be directly effected by a significant drop in oil prices, and that's just Midland-Odessa.

 

On an otherwise barren strip of the Louisiana coast, a crew of more than 4,000 workers has spent the past two years building what will be the largest supercooling facility for natural gas in the U.S. When it’s finished late next year, Cheniere Energy’s (LNG) Sabine Pass liquefaction terminal will begin chilling natural gas to -260F so it can be loaded onto tankers and sold to customers in Europe and Asia. It will be the first facility to export natural gas from the contiguous U.S.

http://www.businessweek.com/articles/2014-11-06/u-dot-s-dot-natural-gas-exports-will-fire-up-in-2015

Terminal will not open for exports until 2015.... it was a terminal for imports. Until July of 2014, the US Government would NOT allow exports of LNG, and that terminal in Louisiana, got authorizations to begin exports in September 2014.

yes there are 3 more planned, the next one to come on line maybe in 2015, then 2018.

The massive flair stacks are due to the extremely depressed price for gas, and in many locations, lack of pipelines to carry the gas away... Unlike North Dakota, who allows unlimited flairs, other states require the gas be captured.

 

falling energy prices will crash what little economy this country has... 17+trillion dollars of debt.... The only sectors of the US that have shown any growth in the last 8 years are the energy sectors. No oil field workers working, buying houses, and cars, and trucks, then there is no need for cars, appliances, cloths, lumber.....and the people who work providing those needed items to the oil field workers.

For every worker making those dollars, they support 8 more people in support jobs.

And some people do not understand envy.