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Oil is Plunging...Good or bad for economy? (1 Viewer)

shader

shader

Footballguy
I gotta say, I think it's great for the average consumer that oil is plunging. It's down another 4% today, and the drop has hit the pumps, at least in my area. I got gas yesterday for 2.39 and the 4% drop should make things even better.

This also has to help many businesses as well, as their operating expenses greatly improve.

But this has to be horrible for the oil industry itself I would imagine. The shale explosion in North Dakota is in serious jeopardy now, I would imagine.

Overall, I'd say it's good, but is there a hidden downside to the price of oil dropping so rapidly?

 
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All things being equal, falling oil prices are good for our economy. Of course, you need to look at the reason for the falling price which is usually because of a slumping world economy.

 
shader said:
But this has to be horrible for the oil industry itself I would imagine. The shale explosion in North Dakota is in serious jeopardy now, I would imagine.
Click to expand...
Gonna have to search for a link (think I was reading a post on another message board), but I have read that over 90% of the working shale fields in North America (or maybe the U.S.?) will remain just barely profitable down to about $40-something per barrel. The idea is that once you've got the structure to get the oil out of the ground set up, and the refineries set up, and everything is up and running, all the costs involved are sunk and they've pretty much got to keep it going -- if nothing else, to mitigate any near-term losses from low global oil prices.

Don't know specificlly about the current ND shale fields, though. What's liekly to be impacted is near-future shale field development -- right now, it's not profitable to dump the cost into setting up a shale operation from scratch.

 
chet said:
All things being equal, falling oil prices are good for our economy. Of course, you need to look at the reason for the falling price which is usually because of a slumping world economy.
Click to expand...
If it's falling due to more supply with stable demand then it's a good thing for everyone not related to energy companies.

High energy prices are a major hindrance on the economy.

 
Check our history since the 1960s and you will see a strong economy aligned with low gasoline prices almost universally.

 
Of course it is good for the economy. It puts more money in the pockets of consumers to spend on other things and increases business profits. Unfortunately, it will also give rise to the global warming Nazi's who will want to raise taxes to prevent Americans from enjoying cheap energy.

 
cstu said:
chet said:
All things being equal, falling oil prices are good for our economy. Of course, you need to look at the reason for the falling price which is usually because of a slumping world economy.
Click to expand...
If it's falling due to more supply with stable demand then it's a good thing for everyone not related to energy companies.

High energy prices are a major hindrance on the economy.
Click to expand...
Ive heard the drop is due to OPEC purposely lowering the price in hopes of shale oil operations closing. Once shale oil ramps down, they raise the price again.
 
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Jobber said:
cstu said:
chet said:
All things being equal, falling oil prices are good for our economy. Of course, you need to look at the reason for the falling price which is usually because of a slumping world economy.
Click to expand...
If it's falling due to more supply with stable demand then it's a good thing for everyone not related to energy companies.

High energy prices are a major hindrance on the economy.
Click to expand...
Ive heard the drop is due to OPEC purposely lowering the price in hopes of shale oil operations closing. Once shale oil ramps down, they raise the price again.
Click to expand...
It's in the national interest to keep the flow of oil from shale going so if necessary the government should step in a subsidize shale production. If they want to play that game we can too.

 
Doug B said:
shader said:
But this has to be horrible for the oil industry itself I would imagine. The shale explosion in North Dakota is in serious jeopardy now, I would imagine.
Click to expand...
Gonna have to search for a link (think I was reading a post on another message board), but I have read that over 90% of the working shale fields in North America (or maybe the U.S.?) will remain just barely profitable down to about $40-something per barrel. The idea is that once you've got the structure to get the oil out of the ground set up, and the refineries set up, and everything is up and running, all the costs involved are sunk and they've pretty much got to keep it going -- if nothing else, to mitigate any near-term losses from low global oil prices.

Don't know specificlly about the current ND shale fields, though. What's liekly to be impacted is near-future shale field development -- right now, it's not profitable to dump the cost into setting up a shale operation from scratch.
Click to expand...
Assuming here___don't major oil companies own shale sites?

 
http://www.washingtonexaminer.com/oil-prices-drop-who-wins-and-who-loses/article/2555056

The cause of the current plunge has been this year’s global economic slowdown, especially in Europe and China. Demand has fallen off and crude oil has glutted the world market. Prices will stay low as long as the world’s economic system remains in low gear.

But that system will be the first big winner in this current oil market. A sustained drop in the cost of energy means lower costs both for consumers and producers. Look for world economic growth to get a big shot in the arm in 2015 from what’s been happening this summer and fall.
Click to expand...
 
Bad for Texas and other oil-producing states. Good for the rest of the country, I guess. I'd like to see it stabilize around $70 a barrel. That way, our domestic oil producers will still be profitable, while we don't have to pay $3+ per gallon of gas. If it drops much further, and stays there for a while, we could see the collapse of domestic production like the mid '80s. Times were bad down here then. Lots of development that has taken place due to the proliferation of domestic production will be affected. Real estate market will likely see the brunt of the fallout.

 
Tackling Dummies said:
Assuming here___don't major oil companies own shale sites?
Click to expand...
A number of publicly traded oil and gas companies have drilling rigs in the Bakken trend. These include EOG Resources Inc.,[42]Continental Resources Inc.,[43]Whiting Oil & Gas Inc.,[44]Marathon Oil Corporation,[45]QEP Resources,[46]Hess Corporation,[47]Samson Oil and Gas Ltd,[48] In Canada, operators include Lightstream Resources (formerly PetroBakken Energy),[49]Crescent Point Energy, and Tundra Oil & Gas Partnership.[50]
Click to expand...
 
jon_mx said:
Of course it is good for the economy. It puts more money in the pockets of consumers to spend on other things and increases business profits. Unfortunately, it will also give rise to the global warming Nazi's who will want to raise taxes to prevent Americans from enjoying cheap energy.
Click to expand...
you really are a piece of work

 
There’s been breathless media speculation that the fall in oil prices may reflect a decision by Saudi Arabia to force the price as low as it can go, in order to undercut America’s oil shale bonanza. The U.S. is on track to replace the Saudis as the world’s largest crude producer by 2020, but the Saudis can push the price as low $10 per barrel and still make money. And so, the argument goes, perhaps they’re hoping a sharp price plunge will make shale production in places like North Dakota and the Permian basin in Texas unprofitable.

But in fact, the Saudis aren’t that stupid. They know most American oil producers will still be in the black even if the price falls as low as $60 per barrel.

And at that price, their own affluent one-product economy will become unsustainable, as will those of other OPEC players such as Kuwait and the United Arab Emirates.
Click to expand...
 
jon_mx said:
Of course it is good for the economy.
Click to expand...
It's not that easy of an answer. Essentially this is just a transfer of wealth from producer to consumer, but consumer spending is stagnant at the moment so the benefits are yet to be seen. It also increases the chances of global deflationary mechanisms and the dollar has gained significantly over the same period, reducing the U.S.'s purchasing power and job creation. Oil prices are also not falling because of traditional supply and depend mechanisms, but because Saudi Arabia has essentially just flooded the market for the moment to prove a point to it's OPEC brothers.

Venezuela is also negatively impacted and could default, which effects global markets. Lastly this effects the U.S. who is set to become the biggest oil producer in the world in late 2015. A lot of jobs, investment, and growth are negatively impacted by lower oil prices.

 
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Jobber said:
cstu said:
chet said:
All things being equal, falling oil prices are good for our economy. Of course, you need to look at the reason for the falling price which is usually because of a slumping world economy.
Click to expand...
If it's falling due to more supply with stable demand then it's a good thing for everyone not related to energy companies.

High energy prices are a major hindrance on the economy.
Click to expand...
Ive heard the drop is due to OPEC purposely lowering the price in hopes of shale oil operations closing. Once shale oil ramps down, they raise the price again.
Click to expand...
That is the Saudis plan. No idea if it will work or not.

 
It also does a lot of damage to Iran and Russia. We can pretty easily handle the price drop, they can't. This is devastating the Russian economy. They are already back in recession.

 
George Jefferson Airplane said:
jon_mx said:
Of course it is good for the economy.
Click to expand...
It's not that easy of an answer. Essentially this is just a transfer of wealth from producer to consumer, but consumer spending is stagnant at the moment so the benefits are yet to be seen. It also increases the chances of global deflationary mechanisms and the dollar has gained significantly over the same period, reducing the U.S.'s purchasing power and job creation. Oil prices are also not falling because of traditional supply and depend mechanisms, but because Saudi Arabia has essentially just flooded the market for the moment to prove a point to it's OPEC brothers.

Venezuela is also negatively impacted and could default, which effects global markets. Lastly this effects the U.S. who is set to become the biggest oil producer in the world in late 2015. A lot of jobs, investment, and growth are negatively impacted by lower oil prices.
Click to expand...
To oil-related businesses but to consumers it means more discretionary money and to other companies it means more profits.

Overall growth of the economy depends on low energy prices.

 
joffer said:
jon_mx said:
Of course it is good for the economy. It puts more money in the pockets of consumers to spend on other things and increases business profits. Unfortunately, it will also give rise to the global warming Nazi's who will want to raise taxes to prevent Americans from enjoying cheap energy.
Click to expand...
you really are a piece of work
Click to expand...
Not sure where you think I am out of line. Global warmers tend to be very open about wanting higher prices for carbon-based fuels and if that cripples the economy, so be it.

 
cstu said:
George Jefferson Airplane said:
jon_mx said:
Of course it is good for the economy.
Click to expand...
It's not that easy of an answer. Essentially this is just a transfer of wealth from producer to consumer, but consumer spending is stagnant at the moment so the benefits are yet to be seen. It also increases the chances of global deflationary mechanisms and the dollar has gained significantly over the same period, reducing the U.S.'s purchasing power and job creation. Oil prices are also not falling because of traditional supply and depend mechanisms, but because Saudi Arabia has essentially just flooded the market for the moment to prove a point to it's OPEC brothers.

Venezuela is also negatively impacted and could default, which effects global markets. Lastly this effects the U.S. who is set to become the biggest oil producer in the world in late 2015. A lot of jobs, investment, and growth are negatively impacted by lower oil prices.
Click to expand...
To oil-related businesses but to consumers it means more discretionary money and to other companies it means more profits.

Overall growth of the economy depends on low energy prices.
Click to expand...
More than oil -related businesses feel the pain of lower oil prices.

 
George Jefferson Airplane said:
cstu said:
George Jefferson Airplane said:
jon_mx said:
Of course it is good for the economy.
Click to expand...
It's not that easy of an answer. Essentially this is just a transfer of wealth from producer to consumer, but consumer spending is stagnant at the moment so the benefits are yet to be seen. It also increases the chances of global deflationary mechanisms and the dollar has gained significantly over the same period, reducing the U.S.'s purchasing power and job creation. Oil prices are also not falling because of traditional supply and depend mechanisms, but because Saudi Arabia has essentially just flooded the market for the moment to prove a point to it's OPEC brothers.

Venezuela is also negatively impacted and could default, which effects global markets. Lastly this effects the U.S. who is set to become the biggest oil producer in the world in late 2015. A lot of jobs, investment, and growth are negatively impacted by lower oil prices.
Click to expand...
To oil-related businesses but to consumers it means more discretionary money and to other companies it means more profits.

Overall growth of the economy depends on low energy prices.
Click to expand...
More than oil -related businesses feel the pain of lower oil prices.
Click to expand...
This is a major topic in my portfolio (i work for one of the big banks). I am going to be very interested in seeing how my clients address this topic in the upcoming bank meetings.

 
lod01 said:
Jobber said:
cstu said:
chet said:
All things being equal, falling oil prices are good for our economy. Of course, you need to look at the reason for the falling price which is usually because of a slumping world economy.
Click to expand...
If it's falling due to more supply with stable demand then it's a good thing for everyone not related to energy companies.

High energy prices are a major hindrance on the economy.
Click to expand...
Ive heard the drop is due to OPEC purposely lowering the price in hopes of shale oil operations closing. Once shale oil ramps down, they raise the price again.
Click to expand...
That is the Saudis plan. No idea if it will work or not.
Click to expand...
Unlikely - the US isn't a monolithic entity. Production will bubble down and bubble back up. As soon as prices go back up these producers will ramp up, lock in their profits through the futures market, and produce for a while.

 
Another note - the oil majors, particularly those with downstream capabilities, look to be at "back up the truck" levels. Chevron at 4% yield right now. Exxon also looking good.

 
I've never understood the obsession with gas prices. If price at the pump drops 50¢ that is a $40/mo savings for someone who drives 15,000 mi/yr and gets 15mpg. Assuming 2.5 vehicles per house (mom,dad,teenager) we are talking $100/mo savings. When people are spending $200/mo on cable & internet and another $100-300 on cell phone bills the concern over saving a few cents on a gallon of gas seems like a creation of the media and politicians.

 
chauncey said:
I've never understood the obsession with gas prices. If price at the pump drops 50¢ that is a $40/mo savings for someone who drives 15,000 mi/yr and gets 15mpg. Assuming 2.5 vehicles per house (mom,dad,teenager) we are talking $100/mo savings. When people are spending $200/mo on cable & internet and another $100-300 on cell phone bills the concern over saving a few cents on a gallon of gas seems like a creation of the media and politicians.
Click to expand...
You understand that the majority of the things you buy are moved via something that is fueled by gas right? Not quite as simple as you have described above.

 
sbonomo said:
chauncey said:
I've never understood the obsession with gas prices. If price at the pump drops 50¢ that is a $40/mo savings for someone who drives 15,000 mi/yr and gets 15mpg. Assuming 2.5 vehicles per house (mom,dad,teenager) we are talking $100/mo savings. When people are spending $200/mo on cable & internet and another $100-300 on cell phone bills the concern over saving a few cents on a gallon of gas seems like a creation of the media and politicians.
Click to expand...
You understand that the majority of the things you buy are moved via something that is fueled by gas right? Not quite as simple as you have described above.
Click to expand...
Dude it's not moved by gas, it's moved by trucks and trains and boats. C'mon now. How stupid do you think we are?

 
George Jefferson Airplane said:
jon_mx said:
Of course it is good for the economy.
Click to expand...
It's not that easy of an answer. Essentially this is just a transfer of wealth from producer to consumer, but consumer spending is stagnant at the moment so the benefits are yet to be seen. It also increases the chances of global deflationary mechanisms and the dollar has gained significantly over the same period, reducing the U.S.'s purchasing power and job creation. Oil prices are also not falling because of traditional supply and depend mechanisms, but because Saudi Arabia has essentially just flooded the market for the moment to prove a point to it's OPEC brothers.

Venezuela is also negatively impacted and could default, which effects global markets. Lastly this effects the U.S. who is set to become the biggest oil producer in the world in late 2015. A lot of jobs, investment, and growth are negatively impacted by lower oil prices.
Click to expand...
Saudi Arabia isn't flooding the market with crude. We are! Saudia Arabia just isn't cutting their production to support prices in the hope that it will undercut our production. Of course lots of dollars have already spent so what will really get hit is new capex and new wells being drilled. U.S. production is schedule to keep rising in the first half of 2015 (as those projects have been bought and paid for) but second half 2015 will be interesting.

 
chauncey said:
I've never understood the obsession with gas prices. If price at the pump drops 50¢ that is a $40/mo savings for someone who drives 15,000 mi/yr and gets 15mpg. Assuming 2.5 vehicles per house (mom,dad,teenager) we are talking $100/mo savings. When people are spending $200/mo on cable & internet and another $100-300 on cell phone bills the concern over saving a few cents on a gallon of gas seems like a creation of the media and politicians.
Click to expand...
Many people heat their home with oil. It is a big winter expense.

 
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I'm under the impression that a lot of Junk Debt has been created in the past couple of years for US Shale Producers. In excess of $100B.

So what happens when these default/bankrupt?

Because if I were a Saudi ruler and lived in a Islamic Monarchy where I wasn't beholden to the will of the people - I would purposely crash these markets exactly at this moment and buy up these soon-to-be bankrupt companies- perfect opportunity.

My question is: would we care if the Saudi's or some other country came in and scooped up our National reserves for $.01 on the $? Is it even legal for them to do so?

 
siffoin said:
I'm under the impression that a lot of Junk Debt has been created in the past couple of years for US Shale Producers. In excess of $100B.

So what happens when these default/bankrupt?

Because if I were a Saudi ruler and lived in a Islamic Monarchy where I wasn't beholden to the will of the people - I would purposely crash these markets exactly at this moment and buy up these soon-to-be bankrupt companies- perfect opportunity.

My question is: would we care if the Saudi's or some other country came in and scooped up our National reserves for $.01 on the $? Is it even legal for them to do so?
Click to expand...
wouldn't that be a hoot....they would own production on both sides of the world. That is actually a scary thought come to think of it.

 
My grandmother used to tell me, when things are going well, that means calamity is right around the corner. And when things are going badly, it's probably going to get even worse.

Not exactly a lady of good cheer was my Oma.

 
chauncey said:
I've never understood the obsession with gas prices. If price at the pump drops 50¢ that is a $40/mo savings for someone who drives 15,000 mi/yr and gets 15mpg. Assuming 2.5 vehicles per house (mom,dad,teenager) we are talking $100/mo savings. When people are spending $200/mo on cable & internet and another $100-300 on cell phone bills the concern over saving a few cents on a gallon of gas seems like a creation of the media and politicians.
Click to expand...
I'm paying over $1.00 less per gallon than I was earlier this year. That's an extra $1000+ a year per car.

 
George Jefferson Airplane said:
cstu said:
George Jefferson Airplane said:
jon_mx said:
Of course it is good for the economy.
Click to expand...
It's not that easy of an answer. Essentially this is just a transfer of wealth from producer to consumer, but consumer spending is stagnant at the moment so the benefits are yet to be seen. It also increases the chances of global deflationary mechanisms and the dollar has gained significantly over the same period, reducing the U.S.'s purchasing power and job creation. Oil prices are also not falling because of traditional supply and depend mechanisms, but because Saudi Arabia has essentially just flooded the market for the moment to prove a point to it's OPEC brothers.

Venezuela is also negatively impacted and could default, which effects global markets. Lastly this effects the U.S. who is set to become the biggest oil producer in the world in late 2015. A lot of jobs, investment, and growth are negatively impacted by lower oil prices.
Click to expand...
To oil-related businesses but to consumers it means more discretionary money and to other companies it means more profits.

Overall growth of the economy depends on low energy prices.
Click to expand...
More than oil -related businesses feel the pain of lower oil prices.
Click to expand...
:violin:

 
jonessed said:
It also does a lot of damage to Iran and Russia. We can pretty easily handle the price drop, they can't. This is devastating the Russian economy. They are already back in recession.
Click to expand...
Maybe US orchestrated the drop in price to damage Russia and back Putin down?
 
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What strange timing for this Russia breaking event, right as we are laying the economic smack down on them for the Ukraine. Add that to all the other kooky theories that are out there.

 
China's stock market absolutely tanked last night. Looks like it's leading to a big dive in the markets this morning. That's the kind of secondary factor I was wondering about. When one very important commodity moves so violently in one direction, you gotta think it's going to have an impact somewhere.

Of course these things could be unrelated to each other but I find them interesting.

 
chauncey said:
I've never understood the obsession with gas prices. If price at the pump drops 50¢ that is a $40/mo savings for someone who drives 15,000 mi/yr and gets 15mpg. Assuming 2.5 vehicles per house (mom,dad,teenager) we are talking $100/mo savings. When people are spending $200/mo on cable & internet and another $100-300 on cell phone bills the concern over saving a few cents on a gallon of gas seems like a creation of the media and politicians.
Click to expand...
The numbers you are giving are not for typical American families. You're talking about part of the upper middle class.

I'd bet, without research, that less than 1 in 20 American families spends $400+/mo on cable/internet/cells combined. Lop off the DC-NY-Boston corridor and the West Coast, that figure probably drops down to less than 1 in 30.

$50-100 extra per month is not life-changing, but it helps a lot of individual people out.

 
Oil will go a little lower then stabilize around 70 a barrel. Once global demand picks up again coupled with some consolidation domestically of the small upstream and mid stream shale players (which credit wise are getting crushed right now and ripe for COP and CVX like companies to come in and scoop them up to stop their debt bleeding) oil will slowly but surely rise again.

It's a cyclical economic event. Nothing new. I think this is a fantastic buying opportunity for prudent long term investors. It's just hard to figure out when the bottom is in. But buying some strong no debt, massive cash flow, dividend paying oils stocks is a smart idea right here. If you can stomach some short term pain and volatility....this is where the true value in the stock market lies right now as we sit near all time highs.

 
Last edited by a moderator:
Todem said:
Oil will go a little lower then stabilize around 70 a barrel. Once global demand picks up again coupled with some consolidation domestically of the small upstream and mid stream shale players (which credit wise are getting crushed right now and ripe for COP and CVX like companies to come in and scoop them up to stop their debt bleeding) oil will slowly but surely rise again.

It's a cyclical economic event. Nothing new. I think this is a fantastic buying opportunity for prudent long term investors. It's just hard to figure out when the bottom is in. But buying some strong no debt, massive cash flow, dividend paying oils stocks is a smart idea right here. If you can stomach some short term pain and volatility....this is where the true value in the stock market lies right now as we sit near all time highs.
Click to expand...
Yep! I'm buying more. I'll keep buying the big boys all the way down, too.

 
Okay, oil prices have been dropping all morning, which means that everybody is waiting for it to hit rock bottom, so they can buy low. Which means that the people who own the oil contracts are saying, "Hey, we're losing all our damn money, and Christmas is around the corner, and I ain't gonna have no money to buy my son the G.I. Joe with the kung-fu grip! And my wife ain't gonna f... my wife ain't gonna make love to me if I got no money!" So they're panicking right now, they're screaming "SELL! SELL!" to get out before the price keeps dropping. They're panicking out there right now, I can feel it.

 
cstu said:
George Jefferson Airplane said:
cstu said:
George Jefferson Airplane said:
jon_mx said:
Of course it is good for the economy.
Click to expand...
It's not that easy of an answer. Essentially this is just a transfer of wealth from producer to consumer, but consumer spending is stagnant at the moment so the benefits are yet to be seen. It also increases the chances of global deflationary mechanisms and the dollar has gained significantly over the same period, reducing the U.S.'s purchasing power and job creation. Oil prices are also not falling because of traditional supply and depend mechanisms, but because Saudi Arabia has essentially just flooded the market for the moment to prove a point to it's OPEC brothers.

Venezuela is also negatively impacted and could default, which effects global markets. Lastly this effects the U.S. who is set to become the biggest oil producer in the world in late 2015. A lot of jobs, investment, and growth are negatively impacted by lower oil prices.
Click to expand...
To oil-related businesses but to consumers it means more discretionary money and to other companies it means more profits.

Overall growth of the economy depends on low energy prices.
Click to expand...
More than oil -related businesses feel the pain of lower oil prices.
Click to expand...
:violin:
Click to expand...
Banks are pretty important to the economy. See 2008.

 
mr roboto said:
jonessed said:
It also does a lot of damage to Iran and Russia. We can pretty easily handle the price drop, they can't. This is devastating the Russian economy. They are already back in recession.
Click to expand...
Maybe US orchestrated the drop in price to damage Russia and back Putin down?
Click to expand...
We didn't necessarily orchestrate it but SA definitely bumped output because it would economically squeeze both Iran and Russia (Assad's backers).

 
Gatorman said:
Okay, oil prices have been dropping all morning, which means that everybody is waiting for it to hit rock bottom, so they can buy low. Which means that the people who own the oil contracts are saying, "Hey, we're losing all our damn money, and Christmas is around the corner, and I ain't gonna have no money to buy my son the G.I. Joe with the kung-fu grip! And my wife ain't gonna f... my wife ain't gonna make love to me if I got no money!" So they're panicking right now, they're screaming "SELL! SELL!" to get out before the price keeps dropping. They're panicking out there right now, I can feel it.
Click to expand...
:lol:

 
higgins said:
mr roboto said:
jonessed said:
It also does a lot of damage to Iran and Russia. We can pretty easily handle the price drop, they can't. This is devastating the Russian economy. They are already back in recession.
Click to expand...
Maybe US orchestrated the drop in price to damage Russia and back Putin down?
Click to expand...
We didn't necessarily orchestrate it but SA definitely bumped output because it would economically squeeze both Iran and Russia (Assad's backers).
Click to expand...
Nope. Saudi oil production is down a bit this year. It's been pretty stable about 10m bopd the last few years. In the last three years US oil production has gone from 6m bopd to just under 9m bopd

 
msommer said:
higgins said:
mr roboto said:
jonessed said:
It also does a lot of damage to Iran and Russia. We can pretty easily handle the price drop, they can't. This is devastating the Russian economy. They are already back in recession.
Click to expand...
Maybe US orchestrated the drop in price to damage Russia and back Putin down?
Click to expand...
We didn't necessarily orchestrate it but SA definitely bumped output because it would economically squeeze both Iran and Russia (Assad's backers).
Click to expand...
Nope. Saudi oil production is down a bit this year. It's been pretty stable about 10m bopd the last few years. In the last three years US oil production has gone from 6m bopd to just under 9m bopd
Click to expand...
They have fought OPEC to maintain consistent output despite increases in the US. They definitely know what they are doing here.

 
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