$25 oil on the horizon? (1 Viewer)

[Tiger Fan]

Probably. The Saudi are gonna keep flooding the market until others stop exporting imo.

Saying it again and again won't make it true.

The growth in production over the past years was not in Saudi Arabia

Serious question, who is responsible for the growth in production over the past years?

I pay zero attention to this. This is all the Middle East guys controlling the price right?

That's what I'd like to know about it

Tiger Fan is here... he should be able to clear this one up for us.

High Level synopsis....OPEC controls the oil price & 40% of the worlds market....America became the worlds largest producer in 2014 (give or take), although it doesn't export any crude. Saudis and their Gulf allies have decided not to sacrifice their own market share to restore the price. They could curb production sharply, but the main benefits would go to countries they detest such as Iran and Russia. Saudi Arabia can tolerate lower oil prices quite easily. It has $900 billion in reserves. Its own oil costs very little (around $5-6 per barrel) to get out of the ground.)

good article here: http://www.economist.com/blogs/economist-explains/2014/12/economist-explains-4

 

[The General]

I pay zero attention to this. This is all the Middle East guys controlling the price right?

It's all Obama's doing.

That goes without saying.But I am just assuming that the oil sheiks control all this. Some factors are a bit out of there control but ultimately they just turn the spigot back on.

This may have something to do with it.

Isn't the need also going up? That can't be the only reason it's dropping so fast. I've got a little Oliver Stone in me always looking for some conspiracy.

This article has a chart that shows world GDP growth is only about 3%.

In this one it shows oil production is up around the globe, except in the U.S. where production has gone down due to low prices. However, that oil is still there ready to go back online when prices go back up.

All right I'm ready to jump in. It really can't go much lower right, and certainly will at some point go up past what it is right now.Working on those assumptions, right or wrong, how do I invest in this for long term?

Putting this out there for folks who know what they are doing. I pretty much am an idiot with this stuff but do have some long term money sitting that I took out and it's sitting in some money market thing.

 

[cstu]

http://www.motherjones.com/politics/2014/04/oil-subsidies-renewable-energy-tax-breaks

Agree. I'll trade you oil subsidies for farm/ag subsidies. Deal?

ETA: this includes ethanol subsidies.

Deal. Being from Iowa I've known people who were not even farmers that would brag about getting tax-free CRP money for leaving their land empty.

Over $30 billion paid since 1995.