OPEC’s Losing Strategy

Comments (9)

  1. RUSS SMITH says:

    Hi!, Patrons Of Wall Street Daily Et. Al.:
    Since Saudi is the Big Gun in the OPEC oil patch, why haven’t the lessor developed oil production members rebelled against them and straighten out their economic distress earlier in the game instead of waiting for extreme austerity to make its’ move inside their economic structures? Looks like a very selfishly led wolf pack of oil producers to me but evidently internecine strife doesn’t bother the American psyche, as long as we are the temporary beneficiaries of their behavior among themselves? Is there going to be ultimate winners in all of this or just ultimate losers as this situation evolves to its’ unavoidable climaxes? It would appear to me that ultimately this unsophisticated, temporary handout to American consumers will ultimately become bitten by the hands that now feed them cheap fuel for a time? What happens at that point people? Sort of reminds me of the story of the guy who purchased potatoes in Oregon for $5 a sack to sell them in California for $4 a sack. His friend said to him one day that he was cheating himself but he answered: “I know all of that but look at the business I’m in now!”

    RUSS SMITH, CA.(One Of Our Broke, Fiat Money Corrupt States)


  2. rick says:

    Including Bahrain in what you call “rich Arab nations” is nonsense. Other than that interesting analysis, thanks for sharing that breakeven chart


  3. Cathy C says:

    I just don’t understand how it was $1.87 when Bush left office. When it was climbing up when he was in office the Democrats had a fit and brought in OPEC before Congress and the price was brought down. The last 6 years have been awful with Obama, why was gas so high under him and no one said a word.
    It’s nice to have a little extra, we need it to buy food and taxes.


    Tony Reply:

    You have no clue what you are talking about. When Bush left office gas was over 3 dollars and the economy was tanking.


    Ryan Reply:

    Consider that the average price of a regular gallon of gas at U.S. pumps was $1.85 when Bush was sworn in for his second term in January 2005 and $1.84 when Obama took office in January 2009 on the promise of change, according to the U.S. Energy Information Administration.


  4. Matt B says:

    When oil prices go down, the maritime industry is hurting. I work for an offshore marine company that has supply boats and for the last few months business has come to a halt because of falling oil prices. People are getting laid off not just here but also in the oil industry.


  5. easa menon says:

    sir, I am following you from India. I am sure oil prices will never recover for decades. It also has got to do with non-oil reasons i.e. real estate collapse in a leading economy and they already spent where $2 trillion, is now a sunk cost. this affects demand and that is one reason all commodities are falling including agricultural prices. Besides, if this is a game of chicken then Saudi is not going to bite the bullet they ,apparently are able to pump crude for less than $10 a barrel. therefore Saudi can supply crude even at $20 or even $15 a barrel,. since Mckinsey consultants predict oil will be the major fuel till end of this century Saudi will make sure they are in this game till the end. merry Xmas. as you may be aware in Australia they have discovered in mid-west about $20 trillion worth of shale oil(coober pedy oil) -check the owner of this property -linc energy (LNC) . but it might not be feasible to pump this gas because of transporting and logistics problem.


  6. cp55 says:

    So the oil field is not good to get in right now. just graduated with an engineering degree in petroleum and natural gas


  7. Jonathan Thode says:

    I have been in energy all my life I am 59.

    My Father was a DR. of Chemical engineering (MIT).

    The price of oil will go up as soon as all the oil field workers are laid off, and the drilling rigs are put away in the US.

    AT this point the Saudi’s will jack up the price of oil once again.

    This will cost us billions of dollars at the pump.

    If we keep drilling and working our fields now it would save us those billions in the long run.

    In our nation everyone is just looking at the quick buck, and not looking out for our childern.

    Jonathan E. Thode AST/Welding AWS/CWI


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